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RODMAN & RENSHAW CAPITAL GROUP, INC.
10-K
--12-31
33162699
23876620
false
0001054303
Yes
No
Smaller Reporting Company
No
2011
FY
2011-12-31
<p>
<font size="2"><b>N<a id="c68874c001_v1" name="c68874c001_v1"></a>OTE 1 - <u>Organization, Nature of
Operations and Basis of Presentation</u></b></font>
</p><br/><p>
<font size="2"><b>General</b></font>
</p><br/><p>
<font size="2">          Rodman
& Renshaw Capital Group, Inc. (“RRCG”) is a
Delaware holding company which, through its various
subsidiaries, is engaged in the investment banking business.
RRCG’s principal operating subsidiary is Rodman &
Renshaw, LLC (“R&R”), a Delaware limited
liability company formed on June 20, 2002. R&R is
registered with the Financial Industry Regulatory Authority,
Inc. (“FINRA”). RRCG and its subsidiaries,
including R&R, are collectively referred to herein as the
“Company”.</font>
</p><br/><p>
<font size="2"><b>Aceras BioMedical LLC</b></font>
</p><br/><p>
<font size="2">          On
May 12, 2008, the Company formed Aceras BioMedical LLC
(“Aceras BioMedical”), a joint venture through
which the Company, in partnership with Aceras Partners, LLC
(“Aceras Partners”), will make principal
investments in early-stage biotechnology and life sciences
companies. In conjunction with the establishment of the joint
venture, the Company formed a new wholly-owned subsidiary,
Rodman Principal Investments, LLC (“RPI”), which
holds a 50% stake in Aceras BioMedical and serves as the
holding vehicle for all of the Company’s
principal-related businesses. RPI has made an initial
investment commitment to Aceras BioMedical of up to $30.0
million over five years to fund operations and the joint
venture’s principal investments in life science
companies. At December 31, 2011, RPI’s remaining
commitment to Aceras BioMedical to fund operations and the
joint venture’s principal investments in life science
companies was $10.7 million. RPI receives 50% of Aceras
BioMedical’s economic interest in all investments made
by Aceras.</font>
</p><br/><p>
<font size="2">          The
Company determined that Aceras BioMedical meets the
definition of a variable interest entity (“VIE”) as
of December 31, 2011 because the total equity investment at
risk is not sufficient to permit Aceras BioMedical to finance
its activities without additional subordinated financial
support from the Company. The primary beneficiary of Aceras
BioMedical is Aceras Partners because they have the power to
direct the activities that most significantly impact the
entity’s economic performance and they have the right to
receive benefits from the entity that could potentially be
significant to the entity. Since the Company is not the
primary beneficiary of Aceras BioMedical it therefore does
not consolidate Aceras BioMedical.</font>
</p><br/><p>
<font size="2">          As
of May 1, 2009, the Company effected a modification to the
agreements defining the ongoing obligations between Aceras
BioMedical and the Company. Pursuant to the modification
agreement, the annual fixed operating budget was reduced from
$2.5 million to $1.0 million and the expected targeted
investment amount in each prospective investee was reduced
from $2.0 million to $0.5 million. Potential investments in
excess of $0.5 million require consent of the Company.</font>
</p><br/><p>
<font size="2"><b>Rodman & Renshaw, LLC</b></font>
</p><br/><p>
<font size="2">          R&R
is a full-service investment banking firm specializing in
investment banking services to corporations and businesses
and the trading and sale of primarily equity securities.
R&R assists emerging growth companies through capital
raising, strategic advice, research and the development of
institutional support. R&R is an introducing broker and
clears all transactions through a clearing organization on a
fully disclosed basis. Accordingly, R&R is exempt from
rule 15c3-3 of the Exchange Act.</font>
</p><br/><p>
<font size="2"><b>Non-Controlling Interests</b></font>
</p><br/><p>
<font size="2">          The
Company presents its non-controlling (minority) interests as
equity (as opposed to as a liability or mezzanine equity),
and presents its income allocated to both non-controlling
interests and common stockholders. The portion of the
consolidated interests in Aceras BioMedical, which are held
directly by current and former employees of Aceras, were
represented as non-controlling interests until the
deconsolidation of Aceras BioMedical in 2010.</font>
</p><br/>
<p>
<font size="2"><b>N<a id="c68874c002_v1" name="c68874c002_v1"></a>OTE 2 - <u>Summary of Significant
Accounting Policies</u></b></font>
</p><br/><p>
<font size="2"><b>Principles of Consolidation</b></font>
</p><br/><p>
<font size="2">          The
Company’s policy is to consolidate all entities in which
it owns more than 50% of the outstanding voting stock and has
control. In addition, the Company consolidates entities which
lack characteristics of an operating entity or business for
which it is the primary beneficiary. The primary beneficiary
is the party who has the power to direct the activities of a
variable interest entity that most significantly impact the
entity’s economic performance and who has an obligation
to absorb losses of the entity or a right to receive benefits
from the entity that could potentially be significant to the
entity. In situations where the Company has significant
influence but not control of an entity that does not qualify
as a variable interest entity, the Company applies the equity
method of accounting. In those cases where its investment is
less than 20% and significant influence does not exist, the
investments are carried at fair value. Significant influence
generally is deemed to exist when the Company owns 20% to 50%
of the voting equity of an entity or when it holds at least
3% of a limited partnership interest. If the Company does not
consolidate an entity or applies the equity method of
accounting, it accounts for the investment at fair
value.</font>
</p><br/><p>
<font size="2">          All
intercompany accounts and transactions are eliminated in
consolidation.</font>
</p><br/><p>
<font size="2"><b>Financial Instruments at Fair
Value</b></font>
</p><br/><p>
<font size="2">          As
defined in Accounting Standard Codification (“ASC”)
820, fair value generally is based on quoted market prices.
If quoted market prices are not available, fair value is
determined based on other relevant factors, including dealer
price quotations, price activity for equivalent instruments
and valuation pricing models. Among the factors considered in
determining the fair value of financial instruments are
discount margins, weighted average spreads, discounted
anticipated cash flows, the terms and liquidity of the
instrument, the financial condition, operating results and
credit ratings of the issuer or underlying company, the
quoted market price of publicly traded securities with
similar duration and yield, as well as other measurements.
Certain financial instruments have bid and ask prices that
can be observed in the marketplace. For financial instruments
whose inputs are based on bid-ask prices, such financial
instruments are adjusted to the point within the bid-ask
range that meets the Company’s best estimate of fair
value. For offsetting positions in the same financial
instrument, the same price within the bid-ask spread is used
to measure both the long and short positions.</font>
</p><br/><p>
<font size="2">          The
valuation process for financial instruments may include the
use of valuation models and other techniques. Adjustments to
valuations derived from valuation models may be made when, in
management’s judgment, either features of the financial
instrument such as its complexity, or the market in which the
financial instrument is traded require that an adjustment be
made to the value derived from the models. An adjustment may
be made if a financial instrument is subject to sales
restrictions that would result in a price less than the
quoted market price. Adjustments from the price derived from
a valuation model reflect management’s judgment that
other participants in the market for the financial instrument
being measured at fair value would also consider in valuing
that same financial instrument and are adjusted for
assumptions about risk uncertainties and market conditions.
Results from valuation models and valuation techniques in one
period may not be indicative of future period fair value
measurements.</font>
</p><br/><p>
<font size="2">          Financial
instruments owned and financial instruments sold, not yet
purchased are stated at fair value, with related changes in
unrealized appreciation or depreciation reflected in
principal transactions, net in the accompanying Consolidated
Statements of Operations. Equity interests in certain private
equity securities and limited partnership interests are
reflected in the Consolidated Financial Statements at fair
value, which is often represented at initial cost until
significant transactions or developments indicate that a
change in the carrying value of the securities is
appropriate. This represents the Company’s best estimate
of exit price. Generally, the carrying values of these
securities will be increased or decreased based on company
performance in those instances where market values are
readily ascertainable by reference to substantial
transactions occurring in the marketplace or quoted market
prices.</font>
</p><br/><p>
<font size="2">          Fair
value is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction
between market participants at the measurement date. In
determining fair value, the Company uses various methods
including market, income and cost approaches. Based on these
approaches, the Company utilizes assumptions that market
participants would use in pricing the asset or liability,
including assumptions about risk and or the risks inherent in
the inputs to the valuation technique. These inputs can be
readily observable, market corroborated, or generally
unobservable firm inputs. The Company utilizes valuation
techniques that maximize the use of observable inputs and
minimize the use of unobservable inputs. Based on the
observability of the inputs used in the valuation techniques
the Company is required to provide the following information
according to the fair value hierarchy. The fair value
hierarchy ranks the quality and reliability of the
information used to determine fair values. Financial
instrument assets and liabilities carried at fair value have
been classified and disclosed in one of the following three
categories:</font>
</p><br/><p>
<font size="2">          Level
I includes those financial instruments whose valuations are
based on quoted prices in active markets for identical assets
or liabilities that the Company has the ability to access.
Since valuations are based on quoted prices that are readily
and regularly available in an active market, valuation of
these products does not entail a significant degree of
judgment.</font>
</p><br/><p>
<font size="2">          Level
II includes those financial instruments that are valued using
models or other valuation methodologies calibrated to
observable market inputs. These models are primarily
industry-standard models that consider various assumptions,
including discount margins, credit spreads, discounted
anticipated cash flows, the terms and liquidity of the
instrument, the financial condition, operating results and
credit ratings of the issuer or underlying company, the
quoted market price of publicly traded securities with
similar duration and yield, time value, yield curve, default
rates, as well as other measurements. In order to be
classified as Level II, substantially all of these
assumptions would need to be observable in the marketplace or
able to be derived from observable data or supported by
observable levels at which transactions are executed in the
marketplace.</font>
</p><br/><p>
<font size="2">          Level
III is comprised of financial instruments whose fair value is
estimated based on internally developed models or
methodologies utilizing significant inputs that are
unobservable from objective sources. Included in this
category are warrants, private securities, restricted
securities and limited partnership interests.</font>
</p><br/><p>
<font size="2"><b>Value of Underwriter and Placement Agent
Warrants</b></font>
</p><br/><p>
<font size="2">          As
a part of the Company’s compensation for its activities
as underwriter or placement agent, it may receive warrants
exercisable to purchase securities similar to those that are
offered and sold in the financing transaction. The Company
values such warrants using the Black-Scholes Option Pricing
Model (“Black-Scholes”). The model requires
management to use five inputs: price, risk-free interest
rate, exercise price, time remaining on the warrant and
expected price volatility. When the Company initially
receives a warrant in connection with, or prior to an initial
public offering, it applies a portfolio wide volatility
assumption based on the volatility of an index of comparable
companies, since there is no price history for new publicly
traded or private companies. As each warrant approaches its
expiration date, its volatility factor is derived primarily
from the implied volatility of traded options or warrants,
when available, or the historical prices of its underlying
common stock. Management cannot assure that it ultimately
will be able to liquidate any of the warrants received in a
way that will realize the value attributed to the warrants in
the financial statements through the application of
Black-Scholes.</font>
</p><br/><p>
<font size="2">          The
fair value of warrants is recorded in financial instruments
owned, at fair value on the Company’s Consolidated
Statements of Financial Condition. When a warrant is
received, its fair value is included in investment banking
revenue as of the close of the date on which it is earned.
Subsequently, any change in fair value is recorded as
principal transactions. When a warrant is exercised, the fair
value is adjusted to reflect the value of the securities
purchased, net of the exercise price, and the adjustment
amount is recorded as income or loss for the relevant period.
If a warrant expires unexercised, the fair value is adjusted
to zero and the decrease is recorded as a loss in the
relevant period.</font>
</p><br/><p>
<font size="2"><b>Value of Merchant Banking Assets</b></font>
</p><br/><p>
<font size="2">          The
value of the Company’s investment in Aceras
BioMedical’s assets was determined based on a valuation
as of December 31, 2011, taking into consideration cash
received, cost of the investment, market participant inputs,
estimated cash flows based on entity specific criteria,
purchase multiples paid in other comparable third-party
transactions, market conditions, liquidity, operating results
and other qualitative and quantitative factors. The values at
which the Company’s investments are carried on its books
are adjusted to estimated fair value at the end of each
quarter taking into account general economic and stock market
conditions and those characteristics specific to the
underlying investments.</font>
</p><br/><p>
<font size="2"><b>Cash and Cash Equivalents</b></font>
</p><br/><p>
<font size="2">          The
Company generally invests its excess cash in money market
funds. Most of the restricted cash relates to letters of
credit issued in connection with the Company’s office
lease agreement and cash held at financial institutions for
capital purposes. Cash and cash equivalents includes $0.4
million on deposit in a Special Reserve Bank Account for the
Exclusive Benefit of Customers pursuant to Rule 15c3-3 of the
Securities Exchange Act of 1934 and relates to the
Company’s soft dollar credit balances.</font>
</p><br/><p>
<font size="2"><b>Revenue Recognition</b></font>
</p><br/><p>
<font size="2"><i>          Investment
Banking.</i> Underwriting and placement agent revenues and
fees from mergers and acquisitions and other financial
advisory assignments are recognized in the Consolidated
Statements of Operations when the services related to the
underlying transaction are completed under the terms of the
engagement. Expenses associated with such transactions are
estimated and recorded when the related revenue is recognized
or the engagement is otherwise concluded. Underwriting and
placement agent revenues are presented net of related
expenses. When the Company is not the lead manager for an
underwriting transaction, management must estimate the
Company’s share of transaction-related expenses incurred
by the lead manager in order to recognize revenue.
Transaction-related expenses are deducted from the
underwriting fee and therefore reduce the revenue the Company
recognizes as co-manager. Such amounts are adjusted to
reflect actual expenses in the period in which the Company
receives the final settlement, typically within 90 days
following the closing of the transaction.</font>
</p><br/><p>
<font size="2">          In
connection with some underwritten transactions, the Company
may hold in inventory, for a period of time, securities
positions to facilitate the completion of the underwritten
transactions. Realized and unrealized net gains and losses on
these positions are recorded in investment banking
revenues.</font>
</p><br/><p>
<font size="2">          When
the Company receives warrants as a component of its
compensation for investment banking services, revenue is
recognized based on the fair value of those instruments.
Revenue from the receipt of warrants is recognized, as of the
close of the date on which it is earned, based on the
estimated fair value of the securities received using
Black-Scholes, which takes into account the exercise price,
remaining life of the warrant, the current price and expected
price volatility of the underlying stock, expected dividends
on the stock and the risk-free interest rate for the
remaining term of the warrant. The following provides details
of the Company’s investment banking revenue for the
years ended December 31, 2011, 2010 and 2009 (in thousands of
dollars):</font>
</p><br/><table align="center" border="0" cellspacing="0" cellpadding="0" width="77%">
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<font size="2"><b>Year Ended December 31,</b></font>
</p>
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<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2011</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2010</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2009</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Private placements</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">25,951</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">44,665</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">48,150</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Warrants</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">10,116</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">12,679</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">24,184</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Strategic advisory</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">5,215</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">12,957</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">6,965</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Underwritings</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">16,291</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">16,944</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">11,134</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT">
<font size="2">Total investment banking revenue</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">57,573</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">87,245</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">90,433</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2"><i>          Principal
Transactions.</i> Investment related financial instruments
owned and financial instruments sold, but not yet purchased
(all of which are recorded on a trade-date basis) are carried
at fair value with gains and losses reflected in principal
transactions on a trade-date basis.</font>
</p><br/><p>
<font size="2"><i>          Brokerage.</i>
Brokerage revenues consist of (a) commissions resulting from
securities transactions executed as agent or principal and
recorded on a trade date basis, net of soft dollar expenses
of $1.6 million for the year ended December 31, 2011 and (b)
related net trading gains and losses from market making
activities.</font>
</p><br/><p>
<font size="2">          The
Company permits institutional customers to allocate a portion
of their gross commissions to pay for third party research
products and other services (commonly referred to as soft
dollar arrangements). The Company accounts for the cost of
these arrangements on an accrual basis and since the Company
is not the primary obligor, expenses relating to soft dollars
arrangements are netted against brokerage revenues.</font>
</p><br/><p>
<font size="2"><i>          Conference
Fees.</i> The Company may receive conference deposits from
presenters, which are recorded as a liability and then
recognized as revenue when the fees are non-refundable. The
Company also makes advance payments for conference
facilities, entertainment and related costs, which are
recorded as prepaid expenses and then recognized as expenses
when the conference is conducted.</font>
</p><br/><p>
<font size="2"><b>Property and Equipment</b></font>
</p><br/><p>
<font size="2">          Property
and equipment are depreciated using the straight-line method
over the estimated useful lives of the related assets
(generally three to ten years). Leasehold improvements are
amortized using the straight-line method over the term of
related leases or the estimated useful lives of the assets,
whichever is shorter to the provisions of ASC 360, Property,
Plant and Equipment.</font>
</p><br/><p>
<font size="2"><b>Software Development Costs</b></font>
</p><br/><p>
<font size="2">          The
Company capitalizes software development costs related to its
DirectMarkets business in accordance with Financial
Accounting Standards Board (“FASB”) Accounting
Standards Codification (“ASC”) Topic 985-20
(“Costs of Software to be Sold, Leased, or
Marketed”). Software development costs are capitalized
after technological feasibility is established. The
DirectMarkets software products should become available to
clients and potential clients in 2012, as such the Company
began amortizing such costs beginning in 2012 over the
related product’s estimated economic useful life. Net
capitalized software development costs (included in other
assets) totaled $1.0 million at December 31, 2011.</font>
</p><br/><p>
<font size="2"><b>Goodwill and Other Intangible
Assets</b></font>
</p><br/><p>
<font size="2">          Goodwill
is not amortized; instead, it is reviewed for impairment at
least annually and written down when impaired. Goodwill is
impaired when the carrying amount of the reporting unit
exceeds the implied fair value of the reporting unit.</font>
</p><br/><p>
<font size="2">          Intangible
assets consist of customer relationships and a trade name.
Customer relationships and a trade name acquired in business
combinations under the purchase method of accounting are
recorded at their fair values net of accumulated amortization
since the acquisition date. Customer relationships are
recorded at cost net of accumulated amortization. Intangible
assets are amortized over their useful lives using a method
of amortization that reflects the pattern in which the
economic benefits of the intangible assets are consumed or
otherwise used. Amortization is calculated using the straight
line method over the estimated useful lives at the following
annual rates:</font>
</p><br/><table align="center" border="0" cellspacing="0" cellpadding="0" width="52%">
<tr style="FONT-SIZE:1PX">
<td width="74%" valign="bottom">
<p>
 
</p>
</td>
<td width="5%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="15%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Customer relationships</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">33</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">%</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Trade name</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">10</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">%</font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          The
Company reviews its finite-lived intangible assets for
impairment whenever events or changes in circumstances
indicate that the carrying amount of finite-lived intangible
asset may not be recoverable pursuant to the provisions of
ASC 350, Intangibles – Goodwill and Other.
Recoverability of a finite-lived intangible asset is measured
by a comparison of its carrying amount to the undiscounted
future cash flows expected to be generated by the asset. If
the asset is considered to be impaired, the impairment to be
recognized is measured by the amount by which the carrying
amount of the asset exceeds the fair value of the asset,
which is determined based on discounted cash flows.</font>
</p><br/><p>
<font size="2"><b>Earnings Per Share</b></font>
</p><br/><p>
<font size="2">          Basic
EPS is computed by dividing net income applicable to common
stock by the weighted-average number of common shares
outstanding, which includes restricted stock and restricted
stock units (“RSUs”) for which service has been
provided. Diluted EPS includes the components of basic EPS
and also includes the dilutive effects of restricted stock
and RSUs for which service has not yet been provided and
employee stock options.</font>
</p><br/><p>
<font size="2"><b>Income Taxes</b></font>
</p><br/><p>
<font size="2">          Deferred
income taxes are recognized for the future tax consequences
attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their
respective tax basis. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are
expected to be recovered or settled. The effect on deferred
taxes of a change in tax rates is recognized in income in the
period that includes the enactment date.</font>
</p><br/><p>
<font size="2">          Management
evaluates the realizability of its deferred tax assets
quarterly. In determining the possible future realization of
deferred tax assets, the future taxable income from the
following sources is taken into account: (a) the reversal of
taxable temporary differences; (b) future operations
exclusive of reversing temporary differences; and (c) tax
planning strategies that, if necessary, would be implemented
to accelerate taxable income into years in which net
operating losses might otherwise expire.</font>
</p><br/><p>
<font size="2">          ASC
740-10 prescribes a recognition threshold and measurement
attribute for the financial statement recognition and
measurement of a tax position taken or expected to be taken
in a tax return, and provides guidance on de-recognition,
classification, interest and penalties, accounting in interim
periods, disclosure and transition. Management does not
believe that the Company has any material uncertain tax
position requiring recognition or measurement in accordance
with the provisions of ASC 740-10.</font>
</p><br/><p>
<font size="2">          The
Company’s policy is to classify penalties and interest
associated with uncertain tax positions, if required, as a
component of its income tax provision. As a result of having
no material unrecognized tax benefits on uncertain tax
positions, the Company has no material amounts for associated
interest and penalties recorded on the Consolidated
Statements of Financial Condition or the Consolidated
Statements of Operations.</font>
</p><br/><p>
<font size="2"><b>Legal Reserves</b></font>
</p><br/><p>
<font size="2">          The
Company recognizes a liability for a contingency when it is
probable that a liability has been incurred and when the
amount of loss can be reasonably estimated. When a range of
probable loss can be estimated, the Company accrues the most
likely amount of such loss, and if such amount is not
determinable, then the Company accrues the minimum of the
range of probable loss.</font>
</p><br/><p>
<font size="2">          Reserves
related to legal proceedings are established and maintained.
The determination of these reserve amounts requires
significant judgment on the part of management. The
Company’s management considers many factors including,
but not limited to: the amount of the claim; the basis and
validity of the claim; previous results in similar cases; and
legal precedents and case law. Each legal proceeding is
reviewed with counsel in each accounting period and the
reserve is adjusted as deemed appropriate by management. As
of December 31, 2011 and 2010, there were no legal reserves
accrued in the Consolidated Statements of Financial
Condition.</font>
</p><br/><p>
<font size="2"><b>Use of Estimates</b></font>
</p><br/><p>
<font size="2">          The
preparation of financial statements is in conformity with
GAAP, which requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these
estimates.</font>
</p><br/><p>
<font size="2"><b>Concentrations of Credit Risk</b></font>
</p><br/><p>
<font size="2">          R&R
is engaged in trading and provides a broad range of
securities brokerage and investment services to institutional
clients as well as private placement services to business
entities. Counterparties to the R&R’s business
activities include issuers, hedge funds, broker-dealers and
clearing organizations, banks and other financial
institutions.</font>
</p><br/><p>
<font size="2">          R&R
uses a clearing broker to process transactions and maintain
client accounts on a fee basis. R&R permits the clearing
firm to extend credit to a client secured by cash and
securities in the client’s account. R&R’s
exposure to credit risk associated with the non-performance
by its clients and counterparties in fulfilling their
contractual obligations can be directly impacted by volatile
or illiquid trading markets, which may impair the ability of
clients and counterparties to satisfy their obligations to
R&R. R&R has agreed to indemnify its clearing broker
for losses incurred while extending credit to R&R’s
clients. R&R’s policy is to review, as necessary,
the credit standing of its clients and counterparties.
Amounts due from clients that are considered uncollectible
are charged back to R&R by the clearing brokers when such
amounts become determinable.</font>
</p><br/><p>
<font size="2">          Financial
instruments sold but not yet purchased commit R&R to
deliver specified securities at predetermined prices. The
transactions may result in market risk since, to satisfy the
obligation, R&R must acquire the financial instruments at
market prices, which may exceed the values reflected on the
Consolidated Statements of Financial Condition.</font>
</p><br/><p>
<font size="2"><b>Forgivable Loans</b></font>
</p><br/><p>
<font size="2">          As
of December 31, 2011 and 2010, the net balance of forgivable
loans was $0.2 million and $0.9 million, respectively, which
is included in other assets on the Consolidated Statements of
Financial Condition. The Company recorded $1.3 million, $2.6
million and $1.9 million of compensation expense related to
the amortization of these loans during the years ended
December 31, 2011, 2010 and 2009, respectively. These loans
are subject to a substantive service requirement by the
employees and are amortized over the service period on a
straight-line basis.</font>
</p><br/><p>
<font size="2"><b>Stock-Based Compensation</b></font>
</p><br/><p>
<font size="2">          The
Company measures its compensation cost for all stock-based
awards at fair value on the date of grant, taking into
account any post vesting selling restrictions, and recognizes
the compensation expense over the requisite service period
pursuant to the provisions of ASC 718, Compensation –
Stock Compensation. Expenses associated with such grants are
generally recognized on a straight-line basis over the
requisite service period, net of estimated
forfeitures.</font>
</p><br/><p>
<font size="2">          Stock
based compensation for performance-based stock awards is
recognized on a graded vesting basis over the requisite
service period, net of estimated forfeitures, if it is
probable that the performance condition will be achieved.
During 2011, there were reversals of approximately $0.6
million in stock based compensation expense because it is not
probable the performance conditions will be achieved.</font>
</p><br/><p>
<font size="2">          Deferred
stock based compensation costs with respect to shares of
restricted stock and restricted stock units and stock options
granted are presented as part of additional paid in capital
in the Consolidated Statements of Stockholders’
Equity.</font>
</p><br/><p>
<font size="2"><b>Reclassifications</b></font>
</p><br/><p>
<font size="2">          Certain
non-material reclassifications have been made to previously
reported balances to conform to the current
presentation.</font>
</p><br/>
<p>
<font size="2"><b>N<a id="c68874c003_v1" name="c68874c003_v1"></a>OTE 3 – <u>Recent Accounting
Pronouncements</u></b></font>
</p><br/><p>
<font size="2">          In
May 2011, the Financial Accounting Standards Board
(“FASB”) issued accounting updates to ASC 820, Fair
Value Measurements Topic — Amendments to Achieve Common
Fair Value Measurement and Disclosure Requirements in U.S.
GAAP and IFRSs, which provide clarifying guidance on how to
measure fair value and additional disclosure requirements.
The amendments prohibit the use of blockage factors at all
levels of the fair value hierarchy and provide guidance on
measuring financial instruments that are managed on a net
portfolio basis. Additional disclosure requirements include
transfers between Levels I and II; and for Level III fair
value measurements, a description of our valuation processes
and additional information about unobservable inputs
impacting Level III measurements. The updates are effective
March 1, 2012 and will be applied prospectively. The adoption
of this guidance is not expected to have an impact on our
financial condition, results of operations or cash
flows.</font>
</p><br/><p>
<font size="2">          In
June 2011, the FASB issued Accounting Standards Update
2011-05, Comprehensive Income (Topic 220) on presenting
comprehensive income with the intention of increasing its
prominence in financial statements by eliminating the option
to report other comprehensive income and its components in
the statement of changes in stockholder’s equity. The
standard requires comprehensive income to be reported in
either a single statement that presents the components of net
income, the components of other comprehensive income, and
total comprehensive income, or in two consecutive statements.
The standard is effective for fiscal years, and interim
periods within those years, beginning after December 15,
2011.</font>
</p><br/><p>
<font size="2">          In
September 2011, the FASB issued an ASU, Testing Goodwill for
Impairment (“ASU 2011-08”) to Topic 350,
Intangibles — Goodwill and Other. The update outlines
amendments to the two step goodwill impairment test
permitting an entity to first assess qualitative factors in
determining whether it is more likely than not that the fair
value of a reporting unit is less than its carrying amount.
The update is effective for annual and interim goodwill tests
performed for fiscal years beginning after December 15, 2011,
with early adoption permitted. The adoption of this guidance
will not affect our financial condition, results of operation
or cash flows.</font>
</p><br/>
<p>
<font size="2"><b>N<a id="c68874c004_v1" name="c68874c004_v1"></a>OTE 4 – <u>Hudson
Acquisition</u></b></font>
</p><br/><p>
<font size="2">          On
April 8, 2011, the Company completed its acquisition of
Hudson Holding Corporation (“Hudson”). The
transaction was valued at approximately $5.3 million, based
upon the $2.06 per share closing price of the Company’s
common stock on that date.</font>
</p><br/><p>
<font size="2">          The
acquisition was accounted for under the acquisition method of
accounting in accordance with ASC 805, “Business
Combinations.” Accordingly, goodwill was measured as the
excess of the acquisition-date fair value of the
consideration transferred over the amount of acquisition-date
identifiable assets acquired net of assumed liabilities.
Goodwill of $0.3 million was recorded as an asset in the
consolidated statement of financial condition, which has been
allocated to the Company’s Capital Markets segment. In
management’s opinion, the goodwill represents the value
expected from the synergies created through the operational
enhancement benefits that will result from the integration of
Hudson’s business and the reputation and expertise of
Hudson in the equity trading business. During the fourth
quarter of 2011, the Company finalized its final purchase
price allocation and determined that no intangible assets
were identified. Under ASC 805, merger-related transaction
costs (such as advisory, legal, valuation and other
professional fees) are not included as components of
consideration transferred but are accounted for as expenses
in the periods in which the costs are incurred. Transaction
costs of approximately $1.5 million were incurred during 2011
and are included in “other operating expenses” on
the consolidated statement of operations.</font>
</p><br/><p>
<font size="2">          The
following table summarizes the fair value of assets acquired
and liabilities assumed at the date of the acquisition (in
thousands):</font>
</p><br/><table align="center" border="0" cellspacing="0" cellpadding="0" width="64%">
<tr style="FONT-SIZE:1PX">
<td width="79%" valign="bottom">
<p>
 
</p>
</td>
<td width="4%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="12%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2"><b>Assets</b></font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Cash and cash equivalents:</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">4,927</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Financial instruments owned, at fair
value:</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,501</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Private placement and other fees
receivable</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">597</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Receivable from brokers, dealers &
clearing agencies</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,337</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Property and equipment, net</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">152</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Other assets</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,618</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2"><b>Total assets</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">12,132</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="top">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2"><b>Liabilities</b></font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Accrued compensation payable</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,231</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Accounts payable and accrued
expenses</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">4,735</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Financial instruments sold, not yet
purchased, at fair value</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,227</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2"><b>Total liabilities assumed</b></font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">7,193</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="top">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2"><b>Net assets acquired</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">4,939</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          Hudson’s
results of operations have been included in the consolidated
financial statements prospectively from the date of
acquisition. Hudson’s businesses were integrated with
the Company’s immediately after the merger; therefore,
the revenues, expenses and net income of the integrated
businesses are not distinguishable within the Company’s
results of operations. The following unaudited pro forma
financial data assumes the acquisition had occurred at the
beginning of each period presented. Pro forma results have
been prepared by adjusting the Company’s historical
results to include Hudson’s results of operations. The
unaudited pro forma results presented do not necessarily
reflect the results of operations that would have resulted
had the acquisition been completed at the beginning of the
applicable periods presented, nor do they indicate the
results of operations in future periods. Additionally, the
unaudited pro forma results do not include the impact of
possible business model changes, nor do they consider any
potential impacts of current market conditions or revenues,
reduction of expenses, asset dispositions, or other factors.
The impact of these items could alter the following pro forma
results (in thousands of dollars):</font>
</p><br/><table align="center" border="0" cellspacing="0" cellpadding="0" width="40%">
<tr style="FONT-SIZE:1PX">
<td width="22%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="13%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Year Ended<br />
December 31, 2011</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Total revenues</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">74,563</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Net loss</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(39,769</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Loss per share</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Basic</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(1.08</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Diluted</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(1.08</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
</table><br/>
<p>
<font size="2"><b>N<a id="c68874c005_v1" name="c68874c005_v1"></a>OTE 5 - <u>Financial Instruments, at
Fair Value</u></b></font>
</p><br/><p>
<font size="2">          The
following is a summary of the Company’s financial assets
and liabilities that are accounted for at fair value as of
December 31, 2011 by level within the fair value hierarchy
(in thousands of dollars):</font>
</p><br/><table align="center" border="0" cellspacing="0" cellpadding="0" width="80%">
<tr style="FONT-SIZE:1PX">
<td width="33%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Level I</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Level II</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Level III</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Total</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2"><b>Assets:</b></font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Financial instruments owned:</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Corporate equity securities</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">4,928</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">136</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">5,064</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Merchant banking investments</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">9,559</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">9,559</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Warrants and options</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">20</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">4,747</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">4,767</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Fixed income</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,093</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,093</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Other investments</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,379</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,379</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Total financial instruments owned</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">4,948</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,093</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">15,821</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">21,862</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2"><b>Liabilities:</b></font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Financial instruments sold, not yet
purchased</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,643</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,643</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Total financial instruments sold, not
yet purchased</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,643</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,643</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          The
following is a summary of the Company’s financial assets
and liabilities that are accounted for at fair value as of
December 31, 2010 by level within the fair value hierarchy
(in thousands of dollars):</font>
</p><br/><table align="center" border="0" cellspacing="0" cellpadding="0" width="80%">
<tr style="FONT-SIZE:1PX">
<td width="34%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Level I</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Level II</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Level III</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Total</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2"><b>Assets:</b></font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Financial instruments owned:</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Corporate equity securities</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">5,700</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,797</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">7,497</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Merchant banking investments</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">10,557</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">10,557</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Warrants</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">15,570</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">15,570</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Notes</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2,197</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2,197</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Other investments</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,159</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,159</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Total financial instruments owned</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">5,700</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">32,280</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">37,980</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2"><b>Liabilities:</b></font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Financial instruments sold, not yet
purchased</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">3,918</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">3,918</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Total financial instruments sold, not
yet purchased</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">3,918</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">3,918</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          Financial
instruments are assessed on a quarterly basis to determine
the appropriate classification within the fair value
hierarchy, as defined by ASC Topic 820. Transfers between
fair value classifications occur when there are changes in
pricing observability levels. Transfers of financial
instruments among the levels occur at the end of the
reporting period. There were $2.9 million in transfers from
Level III to Level I classified instruments during 2011. The
transfers primarily relate to non-publicly traded promissory
notes that were converted into publicly traded common stock.
There were no significant transfers between Level I and Level
II for the year ended December 31, 2011. There were no
material transfers between Level I, Level II and Level III
classified instruments during 2010.</font>
</p><br/><p>
<font size="2">          The
following is a description of the valuation basis, including
valuation techniques and inputs, used in measuring the
Company’s financial assets and liabilities that are
accounted for at fair value on a recurring basis:</font>
</p><br/><p>
<font size="2"><i>Corporate Equity Securities.</i></font>
</p><br/><p>
<font size="2">          Exchange
Traded Equity Securities: Exchange-traded equity securities
are measured based on quoted exchange prices, which are
generally obtained from pricing services, and are categorized
as Level I in the fair value hierarchy.</font>
</p><br/><p>
<font size="2">          Non-exchange
Traded Equity Securities: Non-exchange traded equity
securities are categorized as Level III financial instruments
and measured using valuation techniques involving quoted
prices of, or market data for, comparable companies, similar
company ratios and multiples (e.g., price/EBITDA, price/book
value), discounted cash flow analyses and transaction prices
observed for subsequent financing or capital issuance by the
company. When using pricing data of comparable companies,
judgment must be applied to adjust the pricing data to
account for differences between the measured security and the
comparable security (e.g., issuer market capitalization,
yield, dividend rate, geographical concentration).</font>
</p><br/><p>
<font size="2"><i>Merchant Banking Investments.</i></font>
</p><br/><p>
<font size="2">          The
value of the Company’s investment in Aceras
BioMedical’s assets is categorized as Level III
financial instruments and was determined based on a valuation
which takes into consideration, when applicable, cash
received, cost of the investment, market participant inputs,
estimated cash flows based on entity specific criteria,
purchase multiples paid in other comparable third-party
transactions, market conditions, liquidity, operating results
and other qualitative and quantitative factors. The values at
which the Company’s investments are carried on its books
are adjusted to estimated fair value at the end of each
quarter taking into account general economic and stock market
conditions.</font>
</p><br/><p>
<font size="2"><i>Warrants and Options.</i></font>
</p><br/><p>
<font size="2">          
As a part of the Company’s compensation for its
activities as underwriter or placement agent, it may receive
warrants exercisable to purchase securities similar to those
that are offered and sold in the financing transaction. The
Company values such warrants using Black-Scholes. The model
requires management to use five inputs: price, risk-free
interest rate, exercise price, time remaining on the warrant
and expected price volatility. These warrants are categorized
as Level III financial instruments.</font>
</p><br/><p>
<font size="2"><i>Notes.</i></font>
</p><br/><p>
<font size="2">          
Notes categorized within Level III are valued based on
estimates of future cash flow incorporating assumptions
regarding creditor default and recovery rates and
consideration of the issuer’s capital structure.</font>
</p><br/><p>
<font size="2"><i>Investments in Shell Companies.</i></font>
</p><br/><p>
<font size="2">          
Investments in shell companies are categorized as Level III
financial instruments and are valued at cost, which for this
type of instrument approximates fair value.</font>
</p><br/><p>
<font size="2"><i>Fixed Income.</i></font>
</p><br/><p>
<font size="2">          
Fixed income consists of municipal securities which are
categorized as Level II and measured based on quoted prices
obtained from external data providers.</font>
</p><br/><p>
<font size="2"><i>Other Investments.</i></font>
</p><br/><p>
<font size="2">          
Other investments consist of equity limited partnerships
which are categorized as Level III financial instruments. The
investments are valued based on net asset values.</font>
</p><br/><p>
<font size="2"><i>Level III Financial Assets.</i></font>
</p><br/><p>
<font size="2">          
The following is a summary of changes in fair value of the
Company’s financial assets and liabilities that have
been classified as Level III for the year ended December 31,
2011 (in thousands of dollars):</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="94%" align="center">
<tr style="FONT-SIZE:1PX">
<td width="28%" valign="bottom">
<p align="center">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="6%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="5%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="6%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Corporate<br />
Equity<br />
Securities</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Merchant<br />
Banking</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Warrants</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Notes</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Other</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Total</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Balance, December 31, 2010</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,797</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">10,557</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">15,570</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,197</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,159</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">32,280</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Purchases / issuances</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,156</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">9</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">10,116</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">11,281</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Sales / settlements</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(951</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(7,095</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(8,046</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Transfer from Level III to Level
I</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(910</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(1,943</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(2,853</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Realized and unrealized gains/(losses)
(1)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(1,907</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(56</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(13,844</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(254</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(780</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(16,841</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Balance, December 31, 2011</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">136</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">9,559</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">4,747</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,379</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">15,821</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Change in unrealized gains/(losses)
relating to instruments still held at December 31,
2011</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(594</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(56</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(14,479</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(252</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(780</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(16,161</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><table border="0" cellspacing="0" cellpadding="0" width="94%" align="center">
<tr style="FONT-SIZE:1PX">
<td width="4%" valign="top">
<p>
 
</p>
</td>
<td width="16%" valign="top">
<p>
 
</p>
</td>
<td width="76%" valign="top">
<p>
 
</p>
</td>
</tr>
<tr>
<td colspan="2" valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="2">(1)</font>
</p>
</td>
<td colspan="2" valign="top">
<p>
<font size="2">Reported in principal transactions in
the Consolidated Statements of Operations, except for
merchant banking</font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          The
following is a summary of changes in fair value of the
Company’s financial assets and liabilities that have
been classified as Level III for the year ended December 31,
2010 (in thousands of dollars):</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="94%" align="center">
<tr style="FONT-SIZE:1PX">
<td width="30%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="5%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="5%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Corporate<br />
Equity<br />
Securities</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Merchant<br />
Banking</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Warrants</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Notes</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Other</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Total</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Balance, December 31, 2009</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,313</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">22,251</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">22,945</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,920</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,547</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">50,976</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Purchases / issuances</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">510</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">700</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">14,673</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,051</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">16,934</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Sales / settlements</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(8,726</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(550</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(9,276</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Deconsolidation of Aceras
BioMedical</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(13,145</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(13,145</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Realized and unrealized gains/(losses)
(1)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(26</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">751</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(13,322</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(224</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(388</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(13,209</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Balance, December 31, 2010</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,797</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">10,557</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">15,570</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2,197</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2,159</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">32,280</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Change in unrealized gains/(losses)
relating to instruments still held at December 31,
2010</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(26</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">751</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(12,490</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(225</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(388</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(12,378</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><table border="0" cellspacing="0" cellpadding="0" width="94%" align="center">
<tr style="FONT-SIZE:1PX">
<td width="4%" valign="top">
<p>
 
</p>
</td>
<td width="17%" valign="top">
<p>
 
</p>
</td>
<td width="78%" valign="top">
<p>
 
</p>
</td>
</tr>
<tr>
<td colspan="2" valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="2">(1)</font>
</p>
</td>
<td colspan="2" valign="top">
<p>
<font size="2">Reported in principal transactions in
the Consolidated Statements of Operations, except for
merchant banking</font>
</p>
</td>
</tr>
</table><br/>
<p>
<font size="2"><b>N<a id="c68874c006_v1" name="c68874c006_v1"></a>OTE 6 - <u>Goodwill and Other
Intangible Assets</u></b></font>
</p><br/><p>
<font size="2"><b>Miller Mathis & Co., LLC
Acquisition</b></font>
</p><br/><p>
<font size="2">          On
March 24, 2008, the Company acquired Miller Mathis & Co.,
LLC (“Miller Mathis”), an independent mergers and
acquisition advisor to the global steel industry. At December
31, 2011, other intangible assets related to this acquisition
amounted to approximately $0.0 million.</font>
</p><br/><p>
<font size="2"><b>COSCO Capital Management, LLC
Acquisition</b></font>
</p><br/><p>
<font size="2">          On
June 2, 2008, the Company consummated the acquisition of all
the operating assets of COSCO Capital Management LLC, COSCO
Capital Texas LP and Private Energy Securities, Inc.
(collectively, “COSCO”), related companies that
provide investment banking services to the oil and gas
sectors, principally in the United States and Canada. At
December 31, 2011, goodwill and other intangible assets
related to this acquisition amounted to approximately $0.0
million.</font>
</p><br/><p>
<font size="2"><b>Hudson</b></font>
</p><br/><p>
<font size="2">          On
April 8, 2011, the Company completed its acquisition of
Hudson. The transaction was valued at approximately $5.3
million, based upon the $2.06 per share closing price of the
Company’s common stock on that date.</font>
</p><br/><p>
<font size="2">          The
acquisition was accounted for under the acquisition method of
accounting in accordance with ASC 805, “Business
Combinations.” Accordingly, goodwill was measured as the
excess of the acquisition-date fair value of the
consideration transferred over the amount of acquisition-date
identifiable assets acquired net of assumed liabilities.
Goodwill of $0.3 million was recorded as an asset in the
consolidated statement of financial condition, which has been
allocated to the Company’s Capital Markets segment. In
management’s opinion, the goodwill represents the value
expected from the synergies created through the operational
enhancement benefits that will result from the integration of
Hudson’s business and the reputation and expertise of
Hudson in the equity trading business. During the fourth
quarter of 2011, the Company finalized its final purchase
price allocation and determined that no intangible assets
were identified.</font>
</p><br/><p>
<font size="2"><b>Goodwill and Intangible Assets</b></font>
</p><br/><p>
<font size="2">          Goodwill
was tested for impairment as of March 31, 2009 and as of June
30, 2009, after monitoring the relationship of the
Company’s market capitalization to both its book value
and tangible book value and observing a decline in the
Company’s market capitalization related to both
financial services industry-wide factors and to Company
specific factors. The impairment tests resulted in the
recognition of an impairment charge of $1.3 million in 2009
related to a COSCO contingent earn-out paid in cash.</font>
</p><br/><p>
<font size="2">          In
the second quarter of 2010, the Company wrote-off $0.9
million related to a customer list acquired in 2008. The
impairment charge was triggered by the troubled European
markets outlook and the lack of prospective future revenue
generation from European clients.</font>
</p><br/><p>
<font size="2">          Goodwill
is tested annually for impairment as of September 30. Based
on the September 30, 2010 and 2009 impairment tests, goodwill
was not considered to be impaired and the fair value of the
reporting units were determined to be substantially in excess
of the carrying value of goodwill.</font>
</p><br/><p>
<font size="2">          In
the fourth quarter of 2011, the Company wrote-off
approximately $0.7 million related to goodwill and
approximately $0.2 million related to trademarks. The
impairment charges were triggered by the currently troubled
economic conditions, continued net operating loses, continued
decline in the RODM stock price, the lack of revenue
generation in the group underlying one of the trademarks and
the Company’s notice of possible NASDAQ
delisting.</font>
</p><br/><p>
<font size="2">          The
following table represents a summary of the changes to
goodwill and other intangible assets from December 31, 2009
through December 31, 2011 (in thousands of dollars):</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="82%" align="center">
<tr style="FONT-SIZE:1PX">
<td width="33%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="12%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="11%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Goodwill</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Customer<br />
Relationships</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Trademark</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Total</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Balance, December 31, 2009</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">213</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,550</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">198</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,961</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Additions</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">121</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">121</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Impairment</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(933</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(933</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Amortization</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(525</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(23</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(548</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Balance, December 31, 2010</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">334</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">92</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">175</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">601</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Additions</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">323</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">323</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Impairment</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(657</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(156</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(813</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Amortization</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(92</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(19</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(111</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Balance, December 31, 2011</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/>
<p>
<font size="2"><b>N<a id="c68874c007_v1" name="c68874c007_v1"></a>OTE 7 - <u>Property and Equipment,
Net</u></b></font>
</p><br/><p>
<font size="2">          Property
and equipment, net is comprised of the following as of
December 31, 2011 and 2010 (in thousands of dollars):</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="87%" align="center">
<tr style="FONT-SIZE:1PX">
<td width="55%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="17%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="16%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>December 31, 2011</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>December 31, 2010</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Computer and office equipment</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,427</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,809</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Furniture and fixtures</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,436</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,731</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Leasehold improvements</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">3,257</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">3,098</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">7,120</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">7,638</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Less: accumulated depreciation and
amortization</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">4,093</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">4,375</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Property and Equipment, Net</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">3,027</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">3,263</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          Depreciation
expense for the years ended December 31, 2011, 2010 and 2009
was $1.5 million, $1.1 million and $1.1 million,
respectively.</font>
</p><br/>
<p>
<font size="2"><b>N<a id="c68874c008_v1" name="c68874c008_v1"></a>OTE 8 – <u>Long-Term
Debt</u></b></font>
</p><br/><p>
<font size="2">          Long-term
debt is accounted for on an amortized cost basis. The
following is a summary of the carrying value (including
unamortized discounts) of the Company’s long-term debt
as of December 31, 2011 (in thousands of dollars):</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="79%" align="center">
<tr style="FONT-SIZE:1PX">
<td width="74%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="18%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>December 31, 2011</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">10.0% Senior Secured Convertible
Debentures, due 2013, net of discount (effective
interest rate of 11.2%)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">5,997</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Long-Term Debt</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">5,997</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          On
October 31, 2011, the Company entered into a Securities
Purchase Agreement (the “Purchase Agreement”) with
the accredited investors named therein (the
“Purchasers”). Pursuant to the Purchase Agreement,
the Company sold, and the Purchasers purchased, jointly and
not severally, $6,650,000 original principal amount of the
Company’s 10% Senior Secured Convertible Debentures due
October 31, 2013 (the “Debentures”) with a net
share settlement feature, and warrants (the
“Warrants”) to purchase shares of the
Company’s Common Stock (the “Offering”). The
Debentures are convertible into up to 4,433,333 shares of the
Company’s common stock (the “Common Stock”) at
any time prior to maturity, based on a conversion price of
$1.50 per share. A net share settlement feature of the
Debentures could reduce the number of shares of Common Stock
issued upon conversion. The Warrants include Class A Warrants
covering up to 2,216,667 shares of Common Stock, which are
exercisable commencing six months following the date of
issuance and until their expiration on October 31, 2014, at
$1.50 per share, and Class B Warrants covering up to
2,216,667 shares of Common Stock, which are exercisable only
in the event of a prepayment of the Debentures and then only
to the extent of up to 50% of the number of shares of Common
Stock that would have been issued had the prepaid portion of
the Debentures been converted into shares of Common Stock.
The Class B Warrants expire on October 31, 2013 and have an
exercise price of $1.50 per share. The sale and issuance of
the securities was in reliance upon an exemption from the
registration requirements of the Securities Act of 1933, as
amended, set forth in Section 4(2) thereof and/or Regulation
D thereunder.</font>
</p><br/><p>
<font size="2">          Since
the settlement structure of the debt permits settlement in
cash upon conversion, we are required to separately account
for the liability and equity components of the convertible
debt in a manner that reflects our nonconvertible debt
borrowing rate when interest cost is recognized in subsequent
periods. This entails bifurcation of a component of the debt,
classification of that component in equity and then accretion
of the resulting discount on the debt being reflected in the
Statement of Operations as part of interest expense.</font>
</p><br/><p>
<font size="2">          The
Class B warrants were accounted for as a separate liability
component because the number of shares underlying the
warrants was not fixed and determinable. As of October 31,
2011 and December 31, 2011 the value of the Series B Warrants
was $0.3 million and $0.1 million respectively. The
unrealized change in value of the Series B Warrants was
recorded as a component of principal transactions
revenue.</font>
</p><br/><p>
<font size="2">          The
Class A warrants which amounted to $0.4 million and were
accounted for as a separate equity component and the Class B
warrants which amounted to $0.3 million, together, represent
the original discount on the debt.</font>
</p><br/>
<p>
<font size="2"><b>N<a id="c68874c009_v1" name="c68874c009_v1"></a>OTE 9 - <u>Warrants</u></b></font>
</p><br/><p>
<font size="2">          The
Company, issued common stock purchase warrants to the
investors in its March 2007 $20,000,000 private placement
financing. The warrants, as adjusted, covered the purchase of
up to 1,494,886 shares at an exercise price of $6.35 and were
exercisable through and including March 1, 2010. On March 1,
2010 all 1,494,886 warrants expired unexercised.</font>
</p><br/>
<p>
<font size="2"><b>N<a id="c68874c010_v1" name="c68874c010_v1"></a>OTE 10 - <u>Commitments and
Contingencies</u></b></font>
</p><br/><p>
<font size="2"><b>Lease Commitments</b></font>
</p><br/><p>
<font size="2">          The
Company leases its headquarters and other office locations
under non-cancelable lease agreements which expire between
2011 and 2014. The Company lease for the 20th floor at 1251
Avenue of the Americas, New York, NY (the “NY
Lease”) expires in October 2013. As of December 31,
2011, the only significant change in the Company’s lease
agreements since December 31, 2010 is the assumption of
Hudson’s Jersey City, New Jersey office lease which
expires in 2012. The New Jersey office was for the most part
abandoned in August 2011.</font>
</p><br/><p>
<font size="2">          The
Company’s future minimum lease payments for all
operating leases are as follows as of December 31, 2011 (in
thousands of dollars):</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="50%" align="center">
<tr style="FONT-SIZE:1PX">
<td width="15%" valign="bottom">
<p>
 
</p>
</td>
<td width="5%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="13%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="5%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="12%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="5%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Office<br />
Leases</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Subleases</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Net</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2012</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">3,908</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(128</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">3,780</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="right">
<font size="2">2013</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2,673</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2,673</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2014</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">96</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">96</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          Occupancy
and rental expense amounted to $3.8 million, $3.1 million and
$3.1 million in 2011, 2010 and 2009, respectively.</font>
</p><br/><p>
<font size="2"><b>Letter of Credit</b></font>
</p><br/><p>
<font size="2">          In
connection with the NY Lease, the Company issued a letter of
credit in favor of the landlord in the sum of $0.8 million,
as a security deposit. The letter of credit expires in
February 2013 but is subject to automatic extension. The
Company has issued additional letters of credit totaling $0.4
million in favor of other landlords for other office
locations.</font>
</p><br/><p>
<font size="2"><b>Equity Commitment</b></font>
</p><br/><p>
<font size="2">          The
Company, through RPI, has made an investment commitment to
Aceras Partners to fund operations and the joint
venture’s principal investments in life science
companies. At December 31, 2011 and 2010, $10.7 million and
$12.1 million of this commitment remained unfunded,
respectively.</font>
</p><br/>
<p>
<font size="2"><b>N<a id="c68874c011_v1" name="c68874c011_v1"></a>OTE 11 - <u>Net Capital
Requirements</u></b></font>
</p><br/><p>
<font size="2">          R&R
is subject to various regulatory requirements, including the
SEC’s Uniform Net Capital Rule (SEC Rule 15c3-1). These
regulations place limitations on certain transactions, such
as repaying subordinated borrowings, paying cash dividends
and making loans to a parent, affiliates or employees.
Broker-dealers are prohibited from such transactions which
would result in a reduction of its total net capital to less
than 120% of its required minimum net capital. Moreover,
broker-dealers are required to notify the SEC before entering
into any such transactions, which if executed, would result
in a reduction of 30% or more of its excess net capital (net
capital less the minimum requirement). The SEC has the
ability to prohibit or restrict such transactions if the
result is detrimental to the financial integrity of the
broker-dealer.</font>
</p><br/><p>
<font size="2">          The
Company has elected to use the alternative method of
computing regulatory net capital pursuant to Rule 15c3-1. At
December 31, 2011, the R&R had net capital of $6.3
million, which was $5.3 million in excess of its required net
capital of $1.0 million.</font>
</p><br/>
<p>
<font size="2"><b>N<a id="c68874c012_v1" name="c68874c012_v1"></a>OTE 12 - <u>Income
Taxes</u></b></font>
</p><br/><p>
<font size="2">          For
the years ended December 31, 2011 and 2010, the current and
deferred amount of income tax expense / (benefit) in the
statement of operations are comprised of the following (in
thousands of dollars):</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="60%" align="center">
<tr style="FONT-SIZE:1PX">
<td width="55%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="12%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="12%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<p align="center">
<font size="2"><b>Year Ended December 31,</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2011</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2010</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Current:</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Federal</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(90</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(153</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">State and Local</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">29</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">125</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Total current tax expense /
(benefit)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(61</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(28</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Deferred:</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Federal</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">6,157</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(1,902</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">State and Local</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,332</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(557</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Total deferred tax expense /
(benefit)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">8,489</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(2,459</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Total income tax expense /
(benefit)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">8,428</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(2,487</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          A
reconciliation of total income taxes and the amount computed
by applying the applicable federal income tax rate to
earnings before income taxes follows (in thousands of
dollars):</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="75%" align="center">
<tr style="FONT-SIZE:1PX">
<td width="67%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="11%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="11%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<p align="center">
<font size="2"><b>Year Ended December 31,</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2011</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2010</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Computed “expected” tax at 34%
statutory rate</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(9,507</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(2,735</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Increase in taxes resulting from:</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Non-deductible expenses and non-taxable
income, net</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">698</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">189</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">State and local income taxes, net of
federal benefit</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(1,219</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(324</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Income taxes attributable to
non-controlling interest</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">3</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Share-based compensation</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">516</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">309</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Impairment of goodwill</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">110</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Other items</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">182</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">24</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Net operating loss related to dissolved
entity</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">200</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Change in valuation allowance</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">17,645</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(152</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT">
<font size="2">Total</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">8,428</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(2,487</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          The
tax effects of temporary differences that give rise to the
deferred tax assets and deferred tax liabilities are
presented below (in thousands of dollars):</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="65%" align="center">
<tr style="FONT-SIZE:1PX">
<td width="57%" valign="bottom">
<p>
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="15%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="16%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>December 31,<br />
2011</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>December 31,<br />
2010</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Deferred tax assets:</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Stock based compensation</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2,981</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2,743</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Intangible assets</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">8,379</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">8,731</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Depreciation</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">180</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Unrealized gain on investments</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">188</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">287</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Accrued expenses</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">384</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">833</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Allocation for bad debt</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">22</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">73</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Foreign net operating loss
carryforwards</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">249</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">48</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Warrant income</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,315</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Other carryovers</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">162</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">212</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Net operating loss carryforward</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">13,877</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">28,557</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">13,107</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Valuation allowance</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(23,359</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(48</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">5,198</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">13,059</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Deferred tax liabilities:</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Accrued payroll</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(1,183</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Depreciation</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(147</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Debt discount amortization</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(258</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Warrant income</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(2,406</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Gain on sale of investments</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(3,610</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(3,852</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(5,198</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(6,258</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Net deferred tax asset</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">6,801</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          In
determining the possible future realization of deferred tax
assets, the future taxable income from the following sources
is taken into account; (a) the reversal of taxable temporary
differences; (b) future operations exclusive of reversing
temporary differences; and (c) tax planning strategies that,
if necessary, would be implemented to accelerate taxable
income into years in which net operating losses might
otherwise expire.</font>
</p><br/><p>
<font size="2">          The
valuation allowance recorded in 2010 relates to foreign net
operating loss carry-forward deferred tax assets for which
management determined that it is not “more likely than
not” that such deferred tax assets will be realized in
the future. As of December 31, 2011, the Company recorded a
valuation allowance in the amount of $23.4 million ($5.7
million of which was record in connection with the Hudson
acquisition) against the deferred tax asset as management has
determined that it is not “more likely than not”
that the deferred tax assets will be realized in the
future.</font>
</p><br/><p>
<font size="2">          The
Company’s continuing practice is to recognize estimated
interest and/or penalties related to income tax matters as a
component of income tax expense. As of December 31, 2011, the
Company had no significant accruals for interest, penalties
or unrecognized tax benefits on uncertain tax positions. The
Company does not anticipate any change in the amount of
unrecognized tax benefits within the next twelve
months.</font>
</p><br/><p>
<font size="2">          During
2011, the United States Internal Revenue Service completed
its examination of the Company’s U.S. Federal income tax
return for the year 2009 with no changes to the tax return as
filed. The Company is not currently under examination by the
United States Internal Revenue Service or any other state,
local, or foreign taxing jurisdictions.</font>
</p><br/><p>
<font size="2">          The
Company files income tax returns in the U.S. federal
jurisdiction, various states, local and foreign
jurisdictions. The Company’s income tax returns filed
for tax years 2008, 2009 and 2010 are subject to examination
by the U.S. federal, state and foreign taxing
jurisdictions.</font>
</p><br/>
<p>
<font size="2"><b>NO<a id="c68874c013_v1" name="c68874c013_v1"></a>TE 13 – <u>Stock Based
Compensation</u></b></font>
</p><br/><p>
<font size="2"><b>Stock-Based Compensation</b></font>
</p><br/><p>
<font size="2">          The
Company has an Incentive Compensation Plan (“Incentive
Plan”) which allows awards in the form of incentive
stock options (within the meaning of Section 422 of the
Internal Revenue Code), nonqualified stock options, stock
appreciation rights, restricted stock, unrestricted stock,
performance awards, restricted stock units, dividend
equivalents or other share-based awards. The plan imposes a
limit on the number of shares of our common stock that may be
subject to awards.</font>
</p><br/><p>
<font size="2">          The
Incentive Plan allows for grants of restricted stock awards,
whereby employees are granted restricted shares of common
stock subject to forfeiture. The Incentive Plan also allows
for grants of restricted stock units (RSUs). RSUs give a
participant the right to receive fully vested shares at the
end of a specified deferral period. One advantage of RSUs, as
compared to restricted stock, is that the period during which
the award is deferred as to settlement can be extended past
the date the award becomes non-forfeitable, allowing a
participant to hold an interest tied to common stock on a tax
deferred basis. Prior to settlement, RSUs carry no voting
rights associated with the stock ownership.</font>
</p><br/><p>
<font size="2">          The
Company has historically and generally expects to issue new
shares of common stock when satisfying our issuance
obligations pursuant to share based awards, as opposed to
reissuing shares from our treasury stock.</font>
</p><br/><p>
<font size="2">          The
Company recorded $2.3 million, ($0.1) million and $5.8
million of stock-based compensation expense for the years
ended December 31, 2011, 2010 and 2009, respectively. The
2010 total compensation cost of a $0.1 million reversal was
due to several large forfeitures offsetting stock-based
compensation expense during the year.</font>
</p><br/><p>
<font size="2">          The
unamortized deferred stock-based compensation balance as of
December 31, 2011 amounts to $4.7 million and will be fully
amortized through 2016.</font>
</p><br/><p>
<font size="2">          A
summary of stock options outstanding as of December 31, 2011
is as follows (shares in thousands):</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="87%" align="center">
<tr style="FONT-SIZE:1PX">
<td width="29%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="9%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="9%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="2"><b>Stock Options</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Number<br />
of<br />
Options</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Weighted<br />
Average<br />
Exercise<br />
Price</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Weighted<br />
Average<br />
Grant<br />
Date<br />
Fair Value</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Weighted<br />
Average<br />
Remaining<br />
Contractual<br />
Life</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Aggregate<br />
Intrinsic<br />
Value</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Outstanding at December 31, 2009</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">4,107</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">4.07</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">0.96</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">No activity</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Outstanding at December 31, 2010</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">4,107</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">4.07</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">0.96</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Expired</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(1,917</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">3.78</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">0.78</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Outstanding at December 31, 2011</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,190</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">4.33</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1.11</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1.3 years</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Exercisable at December 31, 2011</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2,190</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">4.33</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1.11</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1.3 years</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          There
were no stock option grants in 2011, 2010 and 2009. No cash
was received from the exercise of stock options by employees
during 2011, 2010 and 2009.</font>
</p><br/><p>
<font size="2">          Total
compensation cost associated with stock options was $0.0
million, $0.1 million and $1.4 million in 2011, 2010 and
2009, respectively.</font>
</p><br/><p>
<font size="2">          The
following tables detail the activity of restricted stock
(shares in thousands):</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="53%" align="center">
<tr style="FONT-SIZE:1PX">
<td width="47%" valign="bottom">
<p>
 
</p>
</td>
<td width="5%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="16%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="5%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="17%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="2"><b>Restricted Stock</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Number<br />
of Shares</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Weighted<br />
Average<br />
Grant Date<br />
Fair Value</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Balance at December 31, 2009</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">193</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2.33</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Forfeited</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(8</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2.28</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Vested</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(97</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2.33</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Balance at December 31, 2010</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">88</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2.33</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Forfeited</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">5</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2.28</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Vested</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(93</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2.33</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Balance at December 31, 2011</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          Total
compensation cost associated with restricted stock was $0.0
million, $0.2 million and $0.2 million in 2011, 2010 and
2009, respectively.</font>
</p><br/><p>
<font size="2">          The
following tables detail the activity of restricted stock
units (shares in thousands):</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="86%" align="center">
<tr style="FONT-SIZE:1PX">
<td width="33%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="11%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="11%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="11%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="11%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2"><b>RSUs</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<p align="center">
<font size="2"><b>Shares</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<p align="center">
<font size="2"><b>Weighted Average Grant Date<br />
Fair Value</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Future<br />
Service<br />
Required</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>No Future<br />
Service<br />
Required</b> <font style="font-family: TIMES NEW ROMAN BOLD;"><b>(1)</b></font></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Future<br />
Service<br />
Required</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>No Future<br />
Service<br />
Required</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Balance at December 31, 2009</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,667</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,506</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1.00</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1.02</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Granted</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">5,337</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1.32</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Forfeited</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(1,169</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(1,916</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1.04</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">0.97</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Vested</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(1,272</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,272</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1.07</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1.07</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Distribution of underlying shares</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(155</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">0.95</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Balance at December 31, 2010</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">5,563</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,707</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1.28</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1.13</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Granted</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,568</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1.32</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Forfeited</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(424</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1.10</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Vested</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(1,311</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,311</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1.16</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1.16</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Balance at December 31, 2011</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">5,396</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">3,018</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1.34</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1.14</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="7%" valign="top">
<p>
 
</p>
</td>
<td width="16%" valign="top">
<p>
 
</p>
</td>
<td width="77%" valign="top">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="top">
<p>
<font size="2">(1) Represents fully vested RSUs which
are still subject to transferability
restrictions.</font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          Approximately
1.6 million RSUs were granted, primarily to former Hudson
employees, during 2011.</font>
</p><br/><p>
<font size="2">          The
RSUs generally have vesting provisions for up to 5 years,
with sale restrictions for additional years after vesting.
The fair value of the RSUs was determined based on a
protective put method model using a discount due to lack of
marketability.</font>
</p><br/><p>
<font size="2">          Total
compensation cost associated with RSUs was $2.3 million,
($0.4 million) and $4.2 million in 2011, 2010 and 2009,
respectively. The 2010 total compensation cost of ($0.4
million) was due to several large forfeitures offsetting
stock-based compensation expense during the year. During
2011, there were reversals of approximately $0.6 million in
stock based compensation expense because it is not probable
the performance conditions will be achieved.</font>
</p><br/><p>
<font size="2">          As
of December 31, 2011, there was $4.7 million of total
unrecognized compensation cost related to non-vested
restricted shares and RSUs awards, which is expected to be
recognized over a remaining weighted-average vesting period
of approximately 3 years.</font>
</p><br/>
<p>
<font size="2"><b>N<a id="c68874c014_v1" name="c68874c014_v1"></a>OTE 14 – <u>Weighted Average
Shares Outstanding</u></b></font>
</p><br/><p>
<font size="2">          The
table below reconciles weighted average number of common
shares outstanding, basic and diluted, for the years ended
December 31, 2011, 2010 and 2009 (weighted average shares in
thousands):</font>
</p><br/><table border="0" align="center" cellspacing="0" cellpadding="0" width="80%">
<tr style="FONT-SIZE:1PX">
<td width="62%" valign="bottom">
<p>
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="8" valign="bottom">
<p align="center">
<font size="2"><b>Year Ended December 31,</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="8" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2011</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2010</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2009</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Shares outstanding, basic</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">36,798</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">36,079</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">35,588</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Stock options (1)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">39</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Non-vested restricted stock and RSUs
(1)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,772</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Shares outstanding, diluted</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">36,798</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">36,079</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">37,399</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td colspan="11" valign="bottom">
<p>
<font size="2">(1) Calculated under the treasury stock
method. The treasury stock method assumes the issuance
of only a net incremental number of shares as proceeds
from exercise / issuance are assumed to be used to
repurchase shares at the average stock price for the
period.</font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          Due
to the fact the Company had a net loss for the years ended
December 31, 2011 and December 31, 2010, the outstanding
shares for calculation of basic EPS and diluted EPS for that
period are the same.</font>
</p><br/>
<p>
<font size="2"><b>N<a id="c68874c015_v1" name="c68874c015_v1"></a>OTE 15 – <u>Segment
Reporting</u></b></font>
</p><br/><p>
<font size="2">          The
Company has two business segments, Capital Markets and
Merchant Banking. The Capital Markets reportable segment
includes our investment banking, sales and trading activities
and research. The Capital Markets reportable segment is
managed as a single operating segment that provides the
following principal sources of revenue:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="4%" valign="top">
<p>
 
</p>
</td>
<td width="95%" valign="top">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="2"><b>•</b></font>
</p>
</td>
<td valign="top">
<p>
<font size="2">investment banking fees, which are
derived from corporate finance activities and strategic
advisory services;</font>
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="2"><b>•</b></font>
</p>
</td>
<td valign="top">
<p>
<font size="2">realized and unrealized gains with
respect to securities held for the Company’s own
account;</font>
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="2"><b>•</b></font>
</p>
</td>
<td valign="top">
<p>
<font size="2">commissions on sales and trading
activities;</font>
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="2"><b>•</b></font>
</p>
</td>
<td valign="top">
<p>
<font size="2">conference fees; and</font>
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="2"><b>•</b></font>
</p>
</td>
<td valign="top">
<p>
<font size="2">other miscellaneous sources of revenues,
such as interest.</font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          Although
the Company has multiple sources of revenue derived within
Capital Markets, most of our revenue is derived from
investment banking services and consists of private
placement, underwriting and strategic advisory fees earned
upon the successful completion of financing or other types of
corporate transactions, such as mergers, acquisitions and
dispositions.</font>
</p><br/><p>
<font size="2">          The
Merchant Banking segment is primarily comprised of operating
activities related to Aceras BioMedical. On May 12, 2008, the
Company formed Aceras BioMedical, a joint venture through
which it, in partnership with Aceras Partners, makes
principal investments in early-stage biotechnology and life
sciences companies. In conjunction with the establishment of
the joint venture, the Company formed a new wholly-owned
subsidiary, RPI, which holds a 50% stake in Aceras BioMedical
and serves as the holding vehicle for all of its
principal-related businesses. At December 31, 2011,
RPI’s outstanding investment commitment to Aceras
BioMedical over five years to fund operations and the joint
venture’s principal investments in life science
companies was $10.7 million. RPI receives 50% of Aceras
BioMedical’s economic interest in all investments
made.</font>
</p><br/><table border="0" align="center" cellspacing="0" cellpadding="0" width="80%">
<tr style="FONT-SIZE:1PX">
<td width="45%" valign="bottom">
<p>
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="14%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="2">Dollars in Millions</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Capital<br />
Markets</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom" nowrap="nowrap">
<p align="center">
<font size="2"><b>Merchant<br />
Banking</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom" nowrap="nowrap">
<p align="center">
<font size="2"><b>Non-Controlling<br />
Interest</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Total</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2"><u><b>2011</b></u></font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Net revenues</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">64.4</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1.1</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">65.5</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Expenses</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">90.5</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">3.0</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">93.5</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Operating loss</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(26.1</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(1.9</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(28.0</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Segment assets</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">29.2</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">9.6</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">38.8</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2"><u><b>2010</b></u></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Net revenues</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">82.0</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1.6</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">83.6</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Expenses</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">88.4</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">3.2</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">91.6</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Operating loss</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(6.4</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(1.6</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(8.0</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Segment assets</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">70.5</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">10.6</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">81.1</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2"><u><b>2009</b></u></font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Net revenues</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">96.2</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">17.3</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">18.7</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">132.2</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Expenses</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">80.1</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">10.0</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">90.1</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Operating income</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">16.1</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">7.3</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">18.7</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">42.1</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Segment assets</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">72.7</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">10.1</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">12.1</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">94.9</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/>
<p>
<font size="2"><b>N<a id="c68874c016_v1" name="c68874c016_v1"></a>OTE 16 – <u>Selected Quarterly
Financial Data (Unaudited)</u></b></font>
</p><br/><p>
<font size="2">          The
following is a summary of unaudited quarterly statements of
operations for the years ended December 31, 2011 and 2010
(amounts in thousands, except per share amounts):</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="54%" valign="bottom">
<p>
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>First</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Second</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Third</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Fourth</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2"><u><b>2011</b></u></font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Revenues</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">27,345</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">15,898</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">11,177</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">11,069</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Operating loss</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(289</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(10,549</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(14,866</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(2,259</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Net loss</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(186</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(7,883</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(8,990</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(19,332</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Loss per share:</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Basic</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(0.01</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(0.21</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(0.24</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(0.52</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Diluted</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.01</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.21</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.24</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.52</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Weighted average number of shares
outstanding:</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Basic</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">35,208</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">37,637</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">37,325</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">37,008</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Diluted</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">35,208</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">37,637</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">37,325</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">37,008</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="54%" valign="bottom">
<p>
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>First</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Second</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Third</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Fourth</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2"><u><b>2010</b></u></font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Revenues</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">27,727</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">16,389</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">17,362</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">22,137</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Operating income (loss)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">4,327</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(7,959</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(6,027</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,615</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Net income (loss)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2,094</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(4,571</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(4,273</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,193</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Earnings (loss) per share:</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Basic</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">0.06</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(0.12</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(0.12</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">0.03</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Diluted</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">0.06</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.12</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.12</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">0.03</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Weighted average number of shares
outstanding:</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Basic</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">36,149</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">36,763</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">36,113</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">35,314</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Diluted</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">37,818</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">36,763</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">36,113</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">37,466</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/>
<p>
<font size="2"><b>N<a id="c68874c017_v1" name="c68874c017_v1"></a>OTE 17 – <u>Subsequent
Events</u></b></font>
</p><br/><p>
<font size="2"><b>Direct Markets</b></font>
</p><br/><p>
<font size="2">          On
February 2, 2012 the Company announced that it, via a new
subsidiary, DirectMarkets, will unveil an automated
state-of-the-art electronic transaction platform to directly
link existing public company issuers and investors seeking to
transact primary offerings of securities. DirectMarkets will
bring unprecedented, cost-efficient access to the capital
markets into the executive ranks of public companies and
bypass certain traditional roles typically held by investment
banks that presently control the transactional process. Both
investors and issuers will benefit from the 24 hours a day
and seven days a week seamless access to DirectMarkets’
platform through a graphical user interface accessible via a
desktop or laptop computer, as well as mobile smart devices
such as tablets or smartphones. The introduction took place
at the TradeTech 2012 Conference in New York City that began
on March 6, 2012.</font>
</p><br/><p>
<font size="2">          With
its many features, the DirectMarkets platform will empower
issuers to sell shares (covered by a shelf registration)
directly into the secondary market and to complete funding
transactions at a fraction of the current cost. Using the
same platform, investors will be able to directly contact
issuers, with effective shelf registrations in place, to
indicate their interest in buying that issuer’s stock,
effectively gaining the ability to accumulate stock positions
in a more cost-effective manner than through on-going open
market purchases.</font>
</p><br/><p>
<font size="2">          In
conjunction with the launch of DirectMarkets, the Company
intends to change its name to Direct Markets Holdings Corp.,
subject to stockholder approval at its 2012 Annual Meeting of
Stockholders scheduled to be held on May 4, 2012. The
Company’s sales, trading and investment banking
operations will continue to be conducted by R&R.</font>
</p><br/><p>
<font size="2"><b>Significant Investment Banking
Fee</b></font>
</p><br/><p>
<font size="2">          On
February 23, 2012, the Company announced that it had acted as
advisor to ZaZa Energy LLC in connection with its merger with
Toreador Resources Corporation, and as the exclusive agent
for the placement of $100 million of senior secured notes and
related warrants.</font>
</p><br/><p>
<font size="2">          Aggregate
cash fees earned by the Company for its services were
approximately $11.7 million which has been recorded in the
Statement of Operations for the year ended December 31,
2012.</font>
</p><br/>