Valuation Overview

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0 height="100%"><tr> <td valign="top" width=160 BGCOLOR="#333333" TEXT="#F7F7FF" background="03fdedc2ddualp.png"> <div> <A HREF="index.htm" TARGET="_top" TITLE="Davis/Chambers Company, Ltd."><U><B><IMG BORDER="0" SRC="Symb075c00b700f099990000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Home</B></U></A></div> <div> <A HREF="id20.htm" TARGET="_top" TITLE="Merger and Acquisition Services"><U><B><IMG BORDER="0" SRC="Symb075c00b700f099990000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Merger and Acquisition Services</B></U></A></div> <div> <A HREF="id21.htm" TARGET="_top" TITLE="Valuation Services"><U><B><IMG BORDER="0" SRC="Symb075c00b700f099990000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Valuation Services</B></U></A></div> <div> <A HREF="id49.htm" TARGET="_top" TITLE="Valuation Overview"><U><B><IMG BORDER="0" SRC="Symb075c002d00f099990000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Valuation Overview</B></U></A></div> <div> <A HREF="id50.htm" TARGET="_top" TITLE="Appraisal Process"><U><B><IMG BORDER="0" SRC="Symb075c002d00f099990000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Appraisal Process</B></U></A></div> <div> <A HREF="id51.htm" TARGET="_top" TITLE="Information Required"><U><B><IMG BORDER="0" SRC="Symb075c002d00f099990000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Information Required</B></U></A></div> <div> <A HREF="id22.htm" TARGET="_top" TITLE="Professionals"><U><B><IMG BORDER="0" SRC="Symb075c00b700f099990000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Professionals</B></U></A></div> <div> <A HREF="id64.htm" TARGET="_top" TITLE="References"><U><B><IMG BORDER="0" SRC="Symb075c00b700f099990000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">References</B></U></A></div> <div> <A HREF="id23.htm" TARGET="_top" TITLE="Contact Us"><U><B><IMG BORDER="0" SRC="Symb075c00b700f099990000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Contact Us</B></U></A></div> <div> <A HREF="id62.htm" TARGET="_top" TITLE="Directions"><U><B><IMG BORDER="0" SRC="Symb075c00b700f099990000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Directions</B></U></A></div> <DIV ALIGN="LEFT"></DIV> <div> <B>_______________</B></div> <div> <B>50 Briar Hollow</B></div> <div> <B>Suite 490 East</B></div> <div> <B>Houston, Texas  77027</B></div> <div> <B>(713) 552-1333</B></div> <div> <B>fax (713) 960-8649</B></div> </td> <td valign="top" BGCOLOR="#FFFFFF" TEXT="#080000" background="04064643.png"> <div> <B>Davis/Chambers & Company, Ltd.</B><FONT SIZE="2" COLOR="#000000" FACE="Times New Roman" >    </FONT><FONT SIZE="3" COLOR="#009999" FACE="Times New Roman" ><B> </B></FONT></div> <div> Valuation Overview</div> <div> Business appraisals produced by Davis/Chambers & Company, Ltd. (“D/C”) are prepared in accordance with the Uniform Standards of Professional Appraisal Practice and the Business Valuation Standards of the American Society of Appraisers.  In addition, the firm follows the guidelines and standards as defined by the Internal Revenue Service with regard to the appraisal of assets subject to estate and gift taxes, and the Department of Labor with regard to appraisals of ESOP owned stock.</div> <bR> <div> <B>Members of the firm are affiliated with the following:</B></div> <bR> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">American Society of Appraisers (ASA)</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">The CFA Institute</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Houston Society of Financial Analysts (HSFA)</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Houston Estate and Financial Forum (HEFF)</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">The ESOP Association</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">The American Institute of Certified Public Accountants (AICPA)</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Texas Society of Certified Pubic Accountants</div> <bR> <div> <B>Davis/Chambers & Company, Ltd.</B><B> valuation experts have appraised the following:</B></div> <bR> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Sole Proprietorships</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Common Stock (Voting, Nonvoting and Restricted shares, "C" and "S" Corporations)</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Preferred Stock (Convertible and Non-convertible, Cumulative and Non-cumulative Dividend Structures)</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Limited Liability Companies</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Partnership Interests (General and Limited Partnership Interests)</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Patents and other Intangible Property</div> <div> FASB 141 Asset Allocation Valuation and Analysis </div> <div> FASB 142 Goodwill and Intangible Asset Impairment Testing</div> <div> FASB 144 Accounting for the Impairment or Disposal of Long-Lived Assets<FONT SIZE="3" COLOR="#000000" FACE="Times New Roman" > </FONT></div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Promissory Notes</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Undivided Interests in Real Estate</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Options and Warrants</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Other Corporate and Personal Assets such as Machinery and Equipment, Royalty Interests, Real Estate, Mortgages, etc.</div> <bR> <div> The business entities being appraised have had annual revenues ranging from less than $1 million to over $1 billion.  The clients have been in virtually every line of business including clients with a single retail location to major manufacturing, distribution, and/or service companies with offices or facilities located throughout the United States and overseas.</div> <bR> <div> Each appraisal offers a competent and independent opinion as to the value of the assets or securities being appraised for one or more of the following purposes:</div> <bR> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Acquisition / divestiture and/or merger negotiations</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Estate planning </div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">The establishment of value for estate and gift tax purposes</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">The establishment of value for various stock ownership plans such as ESOP, buy-sell, employee termination, and/or other internal stock transactions with corporate employees </div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Bankruptcy valuation and reorganization plan support</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Litigation -- expert witness testimony and/or planning support</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Purchase price allocation for FASB 141 compliance</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Impairment testing for FASB 142 and 144 compliance</div> <bR> <div> <B>Litigation -- expert witness testimony and/or planning support</B></div> <bR> <div> Challenges to the valuations offered by Davis/Chambers & Company, Ltd. have been extremely rare, and in cases that were heard by the courts, the valuations have been affirmed.  Tax decisions and settlement agreements also have been generally in favor of the client.  We are available to discuss specific valuation requirements with prospective clients or their attorneys or financial advisors without charge to determine how we may be of service.</div> <bR> <bR> <bR> </td> </tr></table></body>