|   | Delaware                      |   | 91-1834269                             |   |
|--------|-------------------------------|--------|----------------------------------------|--------|
|   | (State of      incorporation) |   | (IRS Employer      Identification No.) |   |

|                | Name of each      exchange |
|---------------------|----------------------------|
| Title of each Class | on which registered        |
|                |                       |
| None                |                       |

----

|   | Large      accelerated filer  ̈ | Non-accelerated      filer  ̈     |   |
|--------|-------------------------------------|---------------------------------------|--------|
|   |                                |                                  |   |
|   | Accelerated      filer  ̈       | Smaller      reporting company þ |   |

----

----

----

| PART I   |              | Page                                                                                                                         |
|----------|-------------------|------------------------------------------------------------------------------------------------------------------------------|
|     | Item      1.      | Business                                                                                                                     | 3 |
|     | Item      1A.     | Risk      Factors                                                                                                            | 12 |
|     | Item      1B.     | Unresolved      Staff Comments                                                                                               | 20 |
|     | Item      2.      | Properties                                                                                                                   | 21 |
|     | Item      3.      | Legal      Proceedings                                                                                                       | 22 |
|     | Item      4.      | Submission of      Matters to a Vote of Security Holders                                                                     | 23 |
|     |              |                                                                                                                         |   |
|     |              |                                                                                                                         |   |
| PART II  |              |                                                                                                                         |
|     | Item      5.      | Market for      Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities | 24 |
|     | Item      6.      | Selected      Financial Data                                                                                                 | 25 |
|     | Item      7.      | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                        | 26 |
|     | Item      7A.     | Quantitative      and Qualitative Disclosures About Market Risk                                                              | 56 |
|     | Item      8.      | Financial      Statements and Supplementary Data                                                                             | 57 |
|     | Item      9.      | Changes in      and Disagreements With Accountants on Accounting and Financial      Disclosure                               | 110 |
|     | Item      9A.     | Controls and      Procedures                                                                                                 | 111 |
|     | Item 9A.      (T) | Controls and      Procedures                                                                                                 | 112 |
|     | Item      9B.     | Other      Information                                                                                                       | 113 |
|     |              |                                                                                                                         |   |
|     |              |                                                                                                                         |   |
| PART III |              |                                                                                                                         |
|     | Item      10.     | Directors,      Executive Officers and Corporate Governance                                                                  | 114 |
|     | Item      11.     | Executive      Compensation                                                                                                  | 118 |
|     | Item      12.     | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters                     | 128 |
|     | Item      13.     | Certain      Relationships and Related Transactions, and Director      Independence                                          | 130 |
|     | Item      14.     | Principal      Accounting Fees and Services                                                                                  | 131 |
|     |              |                                                                                                                         |   |
|     |              |                                                                                                                         |   |
| PART IV  |              |                                                                                                                         |
|     | Item      15.     | Exhibits,      Financial Statement Schedules                                                                                 | 132 |
|     |              |                                                                                                                         |   |
|     |              | Signatures                                                                                                                   | 140 |

----

----

| ·     | closure of 42      and consolidation of 15 business units in underperforming      markets, |
|---------------------------|--------------------------------------------------------------------------------------------|

| ·     | centralized      administrative functions of information systems, reporting, accounts      payable and human resources to our existing administrative support      operation and |
|---------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | reduced      employees 42% in our operations and 12% in our administrative support      operation. |
|---------------------------|----------------------------------------------------------------------------------------------------|

----

|  | ·  | closure of      our concrete business and lumber distribution facility in Southern      California, |
|--|--------------|-----------------------------------------------------------------------------------------------------|

|  | ·  | closure of a      concrete business in NorthernCalifornia, |
|--|--------------|------------------------------------------------------------|

|  | ·  | relocation of      building materials distribution operation in Kent, Washington to our      existing operations in the Puget Sound area of  Washington, |
|--|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ·  | relocation of      millwork operation in Fort Collins, Colorado to our existing operation in      Greeley, Colorado, |
|--|--------------|----------------------------------------------------------------------------------------------------------------------|

|  | ·  | closure of      building materials distribution, millwork and truss operations in Sparks,      Nevada and |
|--|--------------|-----------------------------------------------------------------------------------------------------------|

|  | ·  | exit of      operating leases for various operating  facilities. |
|--|--------------|------------------------------------------------------------------|

----

|  | ·  | closure of      truss operation in Minden,Nevada, |
|--|--------------|---------------------------------------------------|

|  | ·  | relocation of      millwork operation in Boise, Idaho to our existing building distribution      and truss operation in Boise,Idaho, |
|--|--------------|--------------------------------------------------------------------------------------------------------------------------------------|

|  | ·  | relocation of      millwork operation in Salt Lake City, Utah to our existing operation in      Orem, Utah and |
|--|--------------|----------------------------------------------------------------------------------------------------------------|

|  | ·  | exit of      operating leases for various operating  facilities. |
|--|--------------|------------------------------------------------------------------|

|  | ·  | streamlining      of our organizational structure by reducing the previous 13 regions to 6      as well as realigning managementfunctions, |
|--|--------------|--------------------------------------------------------------------------------------------------------------------------------------------|

|  | ·  | integration      and centralization of administrative functions at construction services      operations to our existing administrative support    operations, |
|--|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ·  | closure of      the following business units in underperforming  markets: |
|--|--------------|---------------------------------------------------------------------------|

|  | §  | millwork and      building materials distribution operations in Merced and Bakersfield,      California, |
|--|--------------|----------------------------------------------------------------------------------------------------------|

|  | §  | concrete and      framing services in Tucson,Arizona, |
|--|--------------|-------------------------------------------------------|

|  | §  | block      masonry, concrete services and truss manufacturing in Florida      and |
|--|--------------|-----------------------------------------------------------------------------------|

|  | §  | various      underperforming trades within our operating regions  and |
|--|--------------|-----------------------------------------------------------------------|

|  | ·  | exit of      operating leases for various operating  facilities. |
|--|--------------|------------------------------------------------------------------|

|  | ·  | appointment      of a chief operating officer to assume responsibility for the operation of      our building product and construction service offerings  and |
|--|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ·  | discontinued      framing services inVirginia. |
|--|--------------|------------------------------------------------|

----

----

----

|                       |   | 2008   |      |   | 2007   |   |      | 2006   |   |
|----------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Building      products     |   | $      | 693,664   |   |   | $      | 997,035   |   |   | $ | 1,254,056 |   |
| Construction      services |   |   | 631,015   |   |   |   | 1,182,038 |   |   |   | 1,697,106 |   |
|                       |   | $      | 1,324,679 |   |   | $      | 2,179,073 |   |   | $ | 2,951,162 |   |

----

----

| Name                   | Age    | Position and Business      Experience                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Robert E.      Mellor  | 65     | Chairman of the Board and Chief Executive      OfficerMr. Mellor      became Chairman of the Board of Directors in 2002 and has been Chief      Executive Officer since 1997.  He has been a director since      1991.  He was previously Of Counsel with the law firm of Gibson,      Dunn & Crutcher LLP from 1990 to 1997.  He is on the boards      of directors of Coeur d’Alene Mines Corporation and The Ryland      Group.  He is also on the board of councilors of      Save-the-Redwoods League.  He does not serve on the audit      committee of any of these boards. He serves on the compensation committee      of the board of directors of Coeur d’Alene Mines. |
|                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| William M.      Smartt | 66     | Senior Vice President and Chief Financial      OfficerMr. Smartt      has been a Senior Vice President and Chief Financial Officer since April      2004.  Prior to joining the Company, he was an independent      consultant from August 2001 to March 2004.  From 1992 to 2001,      he was Executive Vice President, Chief Financial and Administrative      Officer of DHL Express, a leader in international air express      services.  His previous experience as a Chief Financial Officer      included 10 years with Di Giorgio Corporation, a Fortune 500 Company,      whose product lines included the distribution of building materials,      prefabricated components and framingservices.           |

----

| Stanley M.      Wilson | 64     | President and Chief Operating      OfficerMr. Wilson      was appointed President and Chief Operating Officer of Building Materials      Holding Corporation in February 2008.  Mr. Wilson was appointed      President and CEO of BMC West in 2004 and was appointed Senior Vice      President in 2003.  He was appointed Vice President in 2000 and      was General Manager of the Pacific Division of BMC West from 1993 to      2003.  Mr. Wilson has been with the company since its beginning      in 1987.  His previous experience includes 20 years with the      building materials distribution business of Boise Cascade      Corporation. |
|------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Eric R.      Beem      | 39     | Vice President and ControllerMr. Beem was      appointed Vice President in January 2006 and Controller in April      2005.  He joined the Company as Accounting Manager in      1996.  Mr. Beem is a Certified Public Accountant and his      experience includes 3 years with an international public accounting      firm.                                                                                                                                                                                                                                                                                                                                                 |
|                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Mark R.      Kailer    | 55     | Vice President, Treasurer and Investor      RelationsMr. Kailer      has been Vice President and Treasurer since 2003.  He joined the      Company in 2000 as Assistant Treasurer.  He was previously      Senior Manager of Treasury Services at Circle International Group, a      publicly-traded global logistics company based in San Francisco, from 1997      to 2000.                                                                                                                                                                                                                                                                                                |
|                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Paul S.      Street    | 61     | Senior Vice President, Chief Administrative      Officer, General Counsel and Corporate SecretaryMr. Street      joined the Company in 1999 as Senior Vice President, General Counsel and      Corporate Secretary and has been Chief Administrative Officer since      2001.  He previously served as our outside General Counsel &      Secretary while a partner of the law firm of Moffatt, Thomas, Barrett,      Rock &Fields.                                                                                                                                                                                                                                            |

----

----

| ●  | Our liquidity is dependent on      operating performance, an efficient cash conversion cycle      and compliance with      financial covenants. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ●  | An inability to implement and      maintain cost structures that align with sales trends may have an adverse impact      on our operating results or the anticipated benefits of      restructuring may not be fully realized or may take longer to realize than      expected. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●  | Loss of customers as well as      changes in the      business models of customers may have an adverse impact on our      operating results. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| §  | work safety      regulations promulgated by the Department of Labor’s Occupational Safety      and Health Administration, |
|--------------|---------------------------------------------------------------------------------------------------------------------------------|

| §  | transportation      regulations promulgated by the Department of    Transportation, |
|--------------|-------------------------------------------------------------------------------------|

| §  | employment      regulations promulgated by the Department of Homeland Security and the      United States Equal Employment Opportunity Commission as well      as |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §  | state and      local zoning restrictions and buildingcodes. |
|--------------|-------------------------------------------------------------|

| §  | Our share price may fluctuate      significantly, which may make it difficult for shareholders to trade our      shares when desired or at attractive  prices. |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| §  | Our shares may be less attractive      as they are not traded on a large, well-known    exchange. |
|--------------|---------------------------------------------------------------------------------------------------|

| §  | Anti-takeover defenses in our      governing documents and certain provisions under Delaware law could prevent an acquisition      of our company or limit the price that investors might be willing to pay      for our shares. |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | our      certificate of incorporation allows our Board of Directors to issue, at      any time and without shareholder approval, preferred shares with such      terms as they may determine; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | our bylaws      provide that during certain types of transactions that could affect      control, including the acquisition of 15% or more of our common shares,      affiliates of any party to the transaction and persons having a material      financial interest in the transaction may not be elected to the Board of      Directors; and |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | certain      provisions of Delaware law generally prohibit us from engaging in any      business combination with a person owning 15% or more of our common      shares, or who is affiliated with us and owned 15% or more of our common      shares at any time within three years prior to the proposed business      combination, for a period of three years from the date the person became a      15% owner, unless specified conditions aremet. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Operations          |       | Administrative |
|---------------------|------------|----------------|
| Location            | Properties |           | Location | Properties |
| Arizona             | 12         |           | California | 1 |
| California          | 21         |           | Idaho | 1 |
| Colorado            | 13         |           | Nevada | 1 |
| Florida             | 2          |           |   |   |
| Idaho               | 12         |           |   |   |
| Illinois            | 1          |           |   |   |
| Montana             | 7          |           |   |   |
| Nevada              | 13         |           |   |   |
| North      Carolina | 1          |           |   |   |
| Oregon              | 1          |           |   |   |
| Texas               | 28         |           |   |   |
| Utah                | 5          |           |   |   |
| Washington          | 5          |           |   |   |

----

----

----

|                |   | 2008   |   | 2007      |   | 2006                  |
|---------------------|--------|--------|--------|-----------|--------|-----------------------|
|                |   | High   |   |  Low |   | CashDividendsDeclared |   |  High |   |  Low |   | Cash      DividendsDeclared |   |  High |   |  Low |   | Cash      Dividends Declared |
|                |   |   |   |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |
| First      quarter  |   | $7     |   | $4        |   | $—              |   | $25 |   | $18 |   | $0.10 |   | $40 |   | $32 |   | $0.10 |
| Second      quarter |   | $5     |   | $2        |   | $—              |   | $18 |   | $13 |   | $0.10 |   | $38 |   | $25 |   | $0.10 |
| Third      quarter  |   | $3     |   | $0.47     |   | $—              |   | $15 |   | $11 |   | $0.10 |   | $28 |   | $21 |   | $0.10 |
| Fourth      quarter |   | $1     |   | $0.21     |   | $—              |   | $12 |   | $5 |   | $0.10 |   | $28 |   | $24 |   | $0.10 |

| ·         Avatar      Holdings Inc.      | ·         Lennar      Corp.         | ·         Simpson      Manufacturing Co. Inc.  |
|--------------------------------------------------------------|---------------------------------------------------------|--------------------------------------------------------------------|
| ·         Beazer Homes      USA Inc.     | ·         Masco      Corp.          | ·         Standard      Pacific Corp.          |
| ·         Brookfield      Homes Corp.    | ·         Meritage      Homes Corp. | ·         Toll Brothers      Inc.              |
| ·         Builders      FirstSource Inc. | ·         MDC Holdings      Inc.    | ·         Universal      Forest Products, Inc. |
| ·         D.R. Horton      Inc.          | ·         NVR      Inc.             | ·         USG      Corp.                       |
| ·         KB      Home                   | ·         Ryland      Group Inc.    |                                                               |

|                                                                                  | Number      of Securities to be Issued Upon Exercise of Outstanding Options, Warrants      and Rights |                        | Weighted      Average Exercise Price of Outstanding Options, Warrants and      Rights |   | Number      of Securities Remaining Available for Future Issuance Under Equity      Compensation Plans |
|---------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-----------------------------|---------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|
| Equity      compensation plans   approved      by security holders     | 2,841                                                                                                 |                             |                                                                                  | $13.11 |                                                                                                        |   | 1,901 |  |
| Equity      compensation plans not   approved      by security holders | 2,825                                                                                                 |  (1)    |                                                                                  | $0.47  |                                                                     |   |  — |                    |
|       Total                                             | 5,666                                                                                                 |                             |                                                                                  | $6.81  |                                                                                                        |   | 1,901 |  |

----

|                                                                                                                                          | Year      Ended December 31 |
|-----------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|
|                                                                                                                                          | 2008                        | 2007 | 2006 | 2005 | 2004 |
| Sales (1)      (3)                                                                                                                            |                        |   |   |   |   |   |   |   |   |   |
|    Building      products                                                                                                      | $                           | 693,664  | $ | 997,035  | $ | 1,254,056  | $ | 1,291,899  | $ | 1,155,999  |
|    Construction      services                                                                                                  |                        | 631,015  |   | 1,182,038  |   | 1,697,106  |   | 1,285,940  |   | 656,697  |
|       Total      sales                                                                                          | $                           | 1,324,679  | $ | 2,179,073  | $ | 2,951,162  | $ | 2,577,839  | $ | 1,812,696  |
|                                                                                                                                          |                        |   |   |   |   |   |   |   |   |   |
| Impairment of assets (2)                                                                                                                      | $                           | 53,015  | $ | 272,152  | $ | —  | $ | 508  | $ | 2,274  |
|                                                                                                                                          |                        |   |   |   |   |   |   |   |   |   |
| (Loss) income      from continuing   operations      (3)                                                                       | $                           | (192,456) | $ | (265,767) | $ | 81,545  | $ | 104,442  | $ | 44,988  |
|                                                                                                                                          |                        |   |   |   |   |   |   |   |   |   |
| (Loss) income      from discontinued   operations      (1)                                                                     | $                           | (22,353) | $ | (46,946) | $ | 20,529  | $ | 25,065  | $ | 8,922  |
|                                                                                                                                          |                        |   |   |   |   |   |   |   |   |   |
| Net (loss)      income                                                                                                                        | $                           | (214,809) | $ | (312,713) | $ | 102,074  | $ | 129,507  | $ | 53,910  |
|                                                                                                                                          |                        |   |   |   |   |   |   |   |   |   |
| Net (loss)      income per diluted share                                                                                                      |                        | $(7.39) |   | $(10.86) |   | $3.45  |   | $4.41  |   | $1.94  |
|                                                                                                                                          |                        |   |   |   |   |   |   |   |   |   |
| Annual cash      dividends declared   per      share                                                                           |                        | $—  |   | $0.40  |   | $0.40  |   | $0.24  |   | $0.14  |
|                                                                                                                                          |                        |   |   |   |   |   |   |   |   |   |
| Working      capital                                                                                                                          | $                           | 137,271  | $ | 262,741  | $ | 239,692  | $ | 295,220  | $ | 264,272  |
| Total      assets                                                                                                                             | $                           | 539,715  | $ | 874,844  | $ | 1,328,911  | $ | 1,150,525  | $ | 743,044  |
| Long-term      debt, net of current portion                                                                                                   | $                           | 287,009  | $ | 343,937  | $ | 348,374  | $ | 276,987  | $ | 204,321  |
| Shareholders’      equity                                                                                                               | $                           | 44,262  | $ | 253,742  | $ | 572,629  | $ | 470,061  | $ | 327,678  |
|                                                                                                                                          |                        |   |   |   |   |   |   |   |   |   |
| Cash flows      (used) provided by   operations                                                                                | $                           | (23,126) | $ | 67,279  | $ | 273,418  | $ | 198,294  | $ | 33,374  |
|                                                                                                                                          |                        |   |   |   |   |   |   |   |   |   |
| Annualized      single-family building   permits      in our markets per US   Census      Bureau as of November |                        | 152,264  |   | 280,890  |   | 409,744  |   | 491,901  |   | 479,037  |

|                                                                                                        |   | 2008 |    |   | 2007   |   |    | 2006   |   |   | 2005    |   |   | 2004 |    |
|-------------------------------------------------------------------------------------------------------------|--------|------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|------|---------|
| (1)   Sales from discontinued      operations:                                               |   | $    | 40,645  |   |   | $      | 135,604 |   |   | $      | 294,007 |   |   | $    | 334,321 |   |   | $ | 278,329 |   |
| Income (loss) from      discontinued          operations: |   | $    | (22,353 | )      |   | $      | (46,946 | )      |   | $      | 20,529  |   |   | $    | 25,065  |   |   | $ | 8,922 |   |

| (2) | As a result      of changes in specific markets, the following impairments were recognized      in 2008: |
|-----|----------------------------------------------------------------------------------------------------------|

| ·          | $53.0 million      for carrying amount of customer relationships, goodwill and certain      property and equipment. |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------|

| ·     | $272.2      million for the carrying amount of goodwill and certain customer      relationships. |
|---------------------------|--------------------------------------------------------------------------------------------------|

|                                               |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |
|----------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                               |   | 2008   |    |   | 2007   |   |   | 2006   |   |   | 2005    |   |   | 2004   |    |
| (3)   Sales from      acquisitions: |   | $      | — |   |   | $      | 82,088 |   |   | $      | 701,604 |   |   | $      | 387,819 |   |   | $ | 64,815 |   |
| Income from      acquisitions:                     |   | $      | — |   |   | $      | 7,595  |   |   | $      | 55,454  |   |   | $      | 30,588  |   |   | $ | 2,152 |   |

----

----

| ·          | closure of 42      and consolidation of 15 business units in underperforming      markets, |
|--------------------------------|--------------------------------------------------------------------------------------------|

| ·     | centralized      administrative functions of information systems, reporting, accounts      payable and human resources to our existing administrative support      operation and |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | reduced      employees 42% in our operations and 12% in our administrative support      operation. |
|--------------------------------|----------------------------------------------------------------------------------------------------|

----

----

----

|   | ●     Sales                         | ●  Cash      flow                     |   |
|--------|------------------------------------------------|-------------------------------------------------------|--------|
|   | ●  Income from      operations | ●  Management of      working capital |   |
|   |                                           | ●  Return on      investment          |   |

----

|                                                                                                           |   | Year      Ended December 31 |    |
|----------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                                                           |   | 2008                        |    |   | 2007 |   |
| Sales                                                                                                          |   |                        |    |   |   |   |   |   |   |   |   |   |
|    Building      products                                                                       |   | $                           | 694     |   |   |   | 52 | % |   | $ | 997 |   |   |   | 46 | % |
|    Construction      services                                                                   |   |                        | 631     |   |   |   | 48 | % |   |   | 1,182 |   |   |   | 54 | % |
|       Total      sales                                                           |   |                        | 1,325   |   |   |   | 100 | % |   |   | 2,179 |   |   |   | 100 | % |
|                                                                                                           |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs      and operating expenses                                                                              |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Cost      of goods sold                                                                      |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Building      products                                                     |   |                        | 514     |   |   |   | 74 | % |   |   | 723 |   |   |   | 73 | % |
|       Construction      services                                                 |   |                        | 576     |   |   |   | 91 | % |   |   | 1,028 |   |   |   | 87 | % |
|    Impairment      of assets                                                                    |   |                        | 53      |   |   |   | 4 | % |   |   | 272 |   |   |   | 13 | % |
|    Selling,      general and administrative expenses                                            |   |                        | 349     |   |   |   | 26 | % |   |   | 423 |   |   |   | 19 | % |
|    Other      income, net                                                                       |   |                        | (5      | ) |   |   | — | % |   |   | (10 | ) |   |   | — | % |
|       Total      costs and operating expenses                                    |   |                        | 1,487   |   |   |   | 112 | % |   |   | 2,435 |   |   |   | 112 | % |
|                                                                                                           |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from      operations                                                                                 |   |                        | (163    | ) |   |   | (12 | )% |   |   | (256 | ) |   |   | (12 | )% |
|                                                                                                           |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest      expense                                                                        |   |                        | 53      |   |   |   | 4 | % |   |   | 34 |   |   |   | 1 | % |
|                                                                                                           |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from      continuing operations   before      income taxes and minority interests     |   |                        | (216    | ) |   |   | (16 | )% |   |   | (290 | ) |   |   | (13 | )% |
|                                                                                                           |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income      tax benefit                                                                      |   |                        | 23      |   |   |   | 2 | % |   |   | 26 |   |   |   | 1 | % |
|    Minority      interests income, net of income taxes                                          |   |                        | — |   |   |   | — | % |   |   | (1 | ) |   |   | — | % |
| Loss      from continuing operations                                                                           |   |                        | (192    | ) |   |   | (14 | )% |   |   | (266 | ) |   |   | (12 | )% |
|                                                                                                           |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loss      from discontinued operations      prior      to sale |   |                        | (13     | ) |   |   | (1 | )% |   |   | 3 |   |   |   | — | % |
|    Impairment      of assets                                                                    |   |                        | (8      | ) |   |   | — | % |   |   | (65 | ) |   |   | (3 | )% |
|    Gain      on sale of discontinued operations                                                 |   |                        | — |   |   |   | — | % |   |   | 20 |   |   |   | 1 | % |
|    Income      tax expense                                                                      |   |                        | (2      | ) |   |   | — | % |   |   | (5 | ) |   |   | — | % |
| Loss      from discontinued operations                                                                         |   |                        | (22     | ) |   |   | (2 | )% |   |   | (47 | ) |   |   | (2 | )% |
|                                                                                                           |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                                  |   | $                           | (215    | ) |   |   | (16 | )% |   | $ | (313 | ) |   |   | (14 | )% |

----

|                                         |   | 2008   |   |   | 2007   |   |   | %      Change |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|---------------|--------|
| Sales                                        |   |   |   |   |   |   |   |          |   |
|    Building      products     |   | $      | 694    |   |   | $      | 997    |          |   |   | (30 | )% |
|    Construction      services |   |   | 631    |   |   |   | 1,182  |          |   |   | (47 | )% |
|                                         |   | $      | 1,325  |   |   | $      | 2,179  |          |   |   | (39 | )% |
|                                         |   |   |   |   |   |   |   |          |   |   |   |   |
| Loss from      operations               |   | $      | (163   | )      |   | $      | (256   | )             |   |   | (36 | )% |

| ·     | Gross margins      declined to 18% from 20% a year ago.  Margins declined 1.6% for      building products and 4.3% for construction services.  Lower      margins resulted from intensified competition for building products and      construction services for fewer housingstarts. |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | We recognized      $53 million for the impairments of certain customer relationships and      covenants not to compete, goodwill, certain property and equipment held      for sale and certain leaseholdimprovements. |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | Partially      offsetting lower gross margins, selling and general administrative      expenses decreased 17% or $73 million from a year ago.  These      expenses were lower due to employee reductions resulting in a      decrease of $75 million or 42% in our operations and 12% in our      administrative operation as well as $22 million of reductions in      occupancy, shipping and handling, travel and other      expenses.  These reductions were partially offset      by: |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | §  | $14 million      increase in the allowance for doubtful accounts receivable as our      customers struggle with fewer construction projects and financing      and |
|--|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | §  | $9 million      for exiting various operating leases associated with underperforming      business units. |
|--|--------------|-----------------------------------------------------------------------------------------------------------|

| ·     | Nonrecurring expenses      associated with closure and consolidation of underperforming business      units classified in selling, general and administrative expenses included      $19 million of payroll and related expenses and other administrative      operating expenses.  As a percent of sales, selling, general and      administrative expenses increased to 26% from 19%.  In addition      to the nonrecurring expenses, the increase was the result    of: |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | §  | a substantial      decline in sales volume, particularly construction services      and |
|--|--------------|-----------------------------------------------------------------------------------------|

|  | §  | a shift in      sales mix to building products from construction  services. |
|--|--------------|-----------------------------------------------------------------------------|

----

| ·     | $6.1 million      for higher interest rates, |
|--------------------------------|----------------------------------------------|

| ·     | $4.2 million      for write-off of deferred loancosts, |
|--------------------------------|--------------------------------------------------------|

| ·     | $3.2 million      for fees associated with waivers and amendments of our credit facility in      September and February 2008 and |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ·     | $3.0 million      for the ineffective portion of interest rate swap    contracts. |
|--------------------------------|-----------------------------------------------------------------------------------|

----

|                                                                                                                |   | Year      Ended December 31 |   |
|---------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                                                                                |   | 2007                        |   |   | 2006 |   |
| Sales                                                                                                               |   |                        |   |   |   |   |   |   |   |   |   |   |
|    Building      products                                                                            |   | $                           | 997    |   |   |   | 46 | % |   | $ | 1,254 |   |   |   | 42 | % |
|    Construction      services                                                                        |   |                        | 1,182  |   |   |   | 54 | % |   |   | 1,697 |   |   |   | 58 | % |
|       Total      sales                                                                |   |                        | 2,179  |   |   |   | 100 | % |   |   | 2,951 |   |   |   | 100 | % |
|                                                                                                                |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs      and operating expenses                                                                                   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Cost      of goods sold                                                                           |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Building      products                                                          |   |                        | 723    |   |   |   | 73 | % |   |   | 913 |   |   |   | 73 | % |
|       Construction      services                                                      |   |                        | 1,028  |   |   |   | 87 | % |   |   | 1,405 |   |   |   | 83 | % |
|    Impairment      of assets                                                                         |   |                        | 272    |   |   |   | 13 | % |   |   | — |   |   |   | — | % |
|    Selling,      general and administrative expenses                                                 |   |                        | 423    |   |   |   | 19 | % |   |   | 473 |   |   |   | 16 | % |
|    Other      income, net                                                                            |   |                        | (10    | ) |   |   | — | % |   |   | (4 | ) |   |   | — | % |
|       Total      costs and operating expenses                                         |   |                        | 2,435  |   |   |   | 112 | % |   |   | 2,788 |   |   |   | 95 | % |
|                                                                                                                |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)      income      from      operations                                                                        |   |                        | (256   | ) |   |   | (12 | )% |   |   | 164 |   |   |   | 5 | % |
|                                                                                                                |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest      expense                                                                             |   |                        | 34     |   |   |   | 1 | % |   |   | 29 |   |   |   | 1 | % |
|                                                                                                                |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)      income      from continuing operations   before      income taxes and minority interests |   |                        | (290   | ) |   |   | (13 | )% |   |   | 135 |   |   |   | 4 | % |
|                                                                                                                |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income      tax benefit (expense)                                                                 |   |                        | 26     |   |   |   | 1 | % |   |   | (45 | ) |   |   | (2 | )% |
|    Minority      interests income, net of income taxes                                               |   |                        | (1     | ) |   |   | — | % |   |   | (8 | ) |   |   | — | % |
| (Loss)      income from continuing operations                                                                       |   |                        | (266   | ) |   |   | (12 | )% |   |   | 82 |   |   |   | 2 | % |
|                                                                                                                |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income      from discontinued operations      prior      to sale    |   |                        | 3      |   |   |   | — | % |   |   | 35 |   |   |   | 1 | % |
|    Impairment      of assets                                                                         |   |                        | (65    | ) |   |   | (3 | )% |   |   | (2 | ) |   |   | — | % |
|    Gain      on sale of discontinued operations                                                      |   |                        | 20     |   |   |   | 1 | % |   |   | — |   |   |   | — | % |
|    Income      tax expense                                                                           |   |                        | (5     | ) |   |   | — | % |   |   | (12 | ) |   |   | — | % |
| (Loss)      income from discontinued operations                                                                     |   |                        | (47    | ) |   |   | (2 | )% |   |   | 21 |   |   |   | 1 | % |
|                                                                                                                |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (loss) income                                                                                              |   | $                           | (313   | ) |   |   | (14 | )% |   | $ | 102 |   |   |   | 3 | % |

----

|                                         |   | 2007   |   |   | 2006   |   |   | %      Change |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|---------------|--------|
| Sales                                        |   |   |   |   |   |   |   |          |   |
|    Building      products     |   | $      | 997    |   |   | $      | 1,254  |          |   |   | (20 | )% |
|    Construction      services |   |   | 1,182  |   |   |   | 1,697  |          |   |   | (30 | )% |
|                                         |   | $      | 2,179  |   |   | $      | 2,951  |          |   |   | (26 | )% |
|                                         |   |   |   |   |   |   |   |          |   |   |   |   |
| (Loss)      income      from operations      |   | $      | (256   | )      |   | $      | 164    |          |   |   | n/m |   |

----

| ·     | $30.0 million      for certain customer relationships, |
|--------------------------------|--------------------------------------------------------|

| ·     | $242.0      million for goodwill and |
|--------------------------------|--------------------------------------|

| ·     | $0.2 million      for certain equipment. |
|--------------------------------|------------------------------------------|

| ·     | a shift in      sales mix to building products from construction  services, |
|--------------------------------|-----------------------------------------------------------------------------|

| ·     | decreases in      commodity wood product prices and |
|--------------------------------|-----------------------------------------------------|

| ·     | the      relatively fixed portion of theseexpenses. |
|--------------------------------|-----------------------------------------------------|

----

----

----

----

----

----

| ·     | 70% of      certain accounts receivable, |
|---------------------------|------------------------------------------|

| ·     | 50% of      certain inventory, |
|---------------------------|--------------------------------|

| ·     | 25% of      certain other inventory, |
|---------------------------|--------------------------------------|

| ·     | approximately      75% of the appraised value of certain property and equipment      and |
|---------------------------|------------------------------------------------------------------------------------------|

| ·     | 50% of the      appraised value of real estate. |
|---------------------------|-------------------------------------------------|

----

----

| ·     | Revolver |
|--------------------------------|----------|

|  | §  | proceeds from      the liquidation of statutory funding requirements of our captive insurance      subsidiary, |
|--|--------------|----------------------------------------------------------------------------------------------------------------|

|  | §  | 30% of tax      refunds and |
|--|--------------|-----------------------------|

|  | §  | cash in      excess of $25 million. |
|--|--------------|-------------------------------------|

| ·     | Term      Note |
|--------------------------------|----------------|

|  | §  | proceeds from      certain dispositions, |
|--|--------------|------------------------------------------|

|  | §  | 70% of tax      refunds and |
|--|--------------|-----------------------------|

|  | §  | 75% of excess      cash flow as defined beginning in2010. |
|--|--------------|-----------------------------------------------------------|

----

| 2009       |   | $      | 39,443  |   |
|------------|--------|--------|---------|--------|
| 2010       |   |   | 3,727   |   |
| 2011       |   |   | 283,189 |   |
| 2012       |   |   | 65      |   |
| 2013       |   |   | 70      |   |
| Thereafter |   |   | 677     |   |
|       |   | $      | 327,171 |   |

----

----

----

|                                                                                       | Payments      Due by Period |    |     |
|--------------------------------------------------------------------------------------------|-----------------------------|---------|----------|
| Contractual      Obligations                                                               | Less      than1      Year   |    | 1-3Years |   | 3-5      Years |   | More      than5      Years |   | Total |   | Fair      Value |
| Long-term debt(1)                                                                          |                        | $39.4   |     | $286.9 |   | $0.2 |   | $0.7 |   | $327.2 |   | $326.7 |
| Capital lease      obligations                                                             |                        | — |     | — |   | — |   | — |   | — |   | — |
| Interest on      long-term debt and   capital      leases(2)                |                        | 24.8    |     | 63.4 |   | 0.1 |   | 0.2 |   | 88.5 |   | 88.5 |
| Operating leases(3)                                                                        |                        | 24.8    |     | 31.5 |   | 12.7 |   | 3.6 |   | 72.6 |   | 72.6 |
| Unconditional      purchase   obligations                                   |                        | — |     | — |   | — |   | — |   | — |   | — |
| Other      long-term commitments                                                           |                        | — |     | — |   | — |   | — |   | — |   | — |
|                                                                                       |                        | $89.0   |     | $381.8 |   | $13.0 |   | $4.5 |   | $488.3 |   | $487.8 |
|                                                                                       |                        |    |     |   |   |   |   |   |   |   |   |   |
| Interest rate      swap contracts                                                          |                        |    |     |   |   |   |   |   |   |   |   |   |
|    Notional      principal amount of interest rate      exchange agreements |                        |    |     |   |   |   |   |   | $135.1 |   | $7.5 |
| Variable to      fixed                                                                     |                        |    |     |   |   |   |   |   |   |   |   |
| Average pay      rate                                                                      |                        |    |     |   |   |   |   |   | 5.3% |   |   |
| Average      receive rate                                                                  |                        |    |     |   |   |   |   |   | 3.5% |   |   |
|                                                                                       |                        |    |     |   |   |   |   |   |   |   | $495.3 |

| (1) | Long-term      debt obligations may differ due to future refinancing of    debt. |
|-----|----------------------------------------------------------------------------------|

| (2) | Interest      obligations may differ due to future refinancing of      debt.  Interest on our variable rate debt was calculated for all      years using the rates in effect as of December 31,  2008. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Operating      lease obligations may differ due to changes in operating plans and      sublease arrangements.  Operating lease obligations are net of      sublease arrangements of $1.8 million for less than 1 year, $1.2 million      for 1 – 3 years and $0.2 million for 3 – 5  years. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

| ·          | substantial      doubt about our ability to continue as a going  concern; |
|--------------------------------|---------------------------------------------------------------------------|

| ·     | demand for      and supply of single-family homes which are influenced by changes in the      overall condition of the U.S. economy, including interest rates, consumer      confidence, job formation, availability of credit and other important      factors; |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | our ability      to maintain adequate liquidity, reduce operating costs and increase market      share in an industry that has experienced and continues to experience a      significant reduction in average annual housing  starts; |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | § | our liquidity      is dependent on operating performance, an efficient cash conversion cycle      and compliance with financialcovenants; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|  | § | our ability      to implement and maintain cost structures that align with sales trends      and |
|--|--------|--------------------------------------------------------------------------------------------------|

----

|  | § | loss of      customers as well as changes in the business models of our customers may      limit our ability to provide building products and construction      services; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | additional      impairment charges and costs to close or consolidate additional business      units in underperforming markets; |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·     | intense      competition; |
|--------------------------------|---------------------------|

| ·     | availability      of and our ability to attract, train and retain qualified      individuals; |
|--------------------------------|-----------------------------------------------------------------------------------------------|

| ·     | fluctuations      in our costs and availability of sourcing channels for commodity wood      products, concrete, steel and other building  materials; |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | weather      conditions including natural catastrophic  events; |
|--------------------------------|-----------------------------------------------------------------|

| ·     | exposure to      product liability and construction defect claims as well as other legal      proceedings; |
|--------------------------------|------------------------------------------------------------------------------------------------------------|

| ·     | disruptions      in our information systems; |
|--------------------------------|----------------------------------------------|

| ·     | actual and      perceived vulnerabilities as a result of widespread credit and liquidity      concerns, terrorist      activities and armed conflict; |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | costs and/or      restrictions associated with federal, state and other regulations;      and |
|--------------------------------|-----------------------------------------------------------------------------------------------|

| ·     | numerous      other matters of a local and regional scale, including those of a      political, economic, business, competitive or regulatory      nature. |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | price for our      shares may fluctuate significantly; |
|--------------------------------|--------------------------------------------------------|

| ·     | our shares      may be less attractive as they are not traded on a large, more well-known      exchange and |
|--------------------------------|-------------------------------------------------------------------------------------------------------------|

| ·     | anti-takeover      defenses and certain provisions could prevent an acquisition of our      company or limit share price. |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                                                                                      |   | Year      Ended December 31 |      |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|-----------|
|                                                                                                                                      |   | 2008                        |      |   | 2007 |   |   | 2006 |   |
| Sales                                                                                                                                     |   |                        |      |   |   |   |   |   |   |
|    Building      products                                                                                                  |   | $                           | 693,664   |   |   | $ | 997,035 |   |   | $ | 1,254,056 |   |
|    Construction      services                                                                                              |   |                        | 631,015   |   |   |   | 1,182,038 |   |   |   | 1,697,106 |   |
|       Total      sales                                                                                      |   |                        | 1,324,679 |   |   |   | 2,179,073 |   |   |   | 2,951,162 |   |
|                                                                                                                                      |   |                        |      |   |   |   |   |   |   |   |   |   |
| Costs      and operating expenses                                                                                                         |   |                        |      |   |   |   |   |   |   |   |   |   |
|    Cost      of goods sold                                                                                                 |   |                        |      |   |   |   |   |   |   |   |   |   |
|       Building      products                                                                                |   |                        | 514,222   |   |   |   | 722,786 |   |   |   | 913,468 |   |
|       Construction      services                                                                            |   |                        | 576,087   |   |   |   | 1,027,796 |   |   |   | 1,404,882 |   |
|    Impairment      of assets                                                                                               |   |                        | 53,015    |   |   |   | 272,152 |   |   |   | — |   |
|    Selling,      general and administrative      expenses                                    |   |                        | 349,417   |   |   |   | 422,694 |   |   |   | 473,374 |   |
|    Other      expense (income), net                                                                                        |   |                        | (5,059    | ) |   |   | (9,971 | ) |   |   | (4,159 | ) |
|       Total      costs and operating expenses                                                               |   |                        | 1,487,682 |   |   |   | 2,435,457 |   |   |   | 2,787,565 |   |
|                                                                                                                                      |   |                        |      |   |   |   |   |   |   |   |   |   |
| (Loss)      income from operations                                                                                                        |   |                        | (163,003  | ) |   |   | (256,384 | ) |   |   | 163,597 |   |
|                                                                                                                                      |   |                        |      |   |   |   |   |   |   |   |   |   |
|    Interest      expense                                                                                                   |   |                        | 52,925    |   |   |   | 33,800 |   |   |   | 29,082 |   |
|                                                                                                                                      |   |                        |      |   |   |   |   |   |   |   |   |   |
| (Loss) income      from      continuing operations   before      income taxes and minority   interests |   |                        | (215,928  | ) |   |   | (290,184 | ) |   |   | 134,515 |   |
|                                                                                                                                      |   |                        |      |   |   |   |   |   |   |   |   |   |
|    Income      tax benefit (expense)                                                                                       |   |                        | 23,409    |   |   |   | 25,670 |   |   |   | (44,893 | ) |
|    Minority      interests loss (income)                                                                                   |   |                        | 63        |   |   |   | (1,253 | ) |   |   | (8,077 | ) |
| (Loss)      income from      continuing operations                                                                                   |   |                        | (192,456  | ) |   |   | (265,767 | ) |   |   | 81,545 |   |
|                                                                                                                                      |   |                        |      |   |   |   |   |   |   |   |   |   |
|    (Loss)      income from discontinued      operations      prior to sale                   |   |                        | (12,680   | ) |   |   | 2,937 |   |   |   | 34,680 |   |
|    Impairment      of assets                                                                                               |   |                        | (7,813    | ) |   |   | (64,922 | ) |   |   | (2,237 | ) |
|    Gain      on sale of discontinued operations                                                                            |   |                        | —   |   |   |   | 20,029 |   |   |   | — |   |
|    Income      tax expense                                                                                                 |   |                        | (1,860    | ) |   |   | (4,990 | ) |   |   | (11,914 | ) |
| (Loss)      income from      discontinued   operations                                                                |   |                        | (22,353   | ) |   |   | (46,946 | ) |   |   | 20,529 |   |
|                                                                                                                                      |   |                        |      |   |   |   |   |   |   |   |   |   |
| Net      (loss)      income                                                                                                               |   | $                           | (214,809  | ) |   | $ | (312,713 | ) |   | $ | 102,074 |   |
|                                                                                                                                      |   |                        |      |   |   |   |   |   |   |   |   |   |
| Net      (loss) income per share:                                                                                                         |   |                        |      |   |   |   |   |   |   |   |   |   |
|    Continuing      operations                                                                                              |   | $                           | (6.62     | ) |   | $ | (9.23 | ) |   | $ | 2.85 |   |
|    Discontinued      operations                                                                                            |   |                        | (0.77     | ) |   |   | (1.63 | ) |   |   | 0.72 |   |
|       Basic                                                                                                 |   | $                           | (7.39     | ) |   | $ | (10.86 | ) |   | $ | 3.57 |   |
|                                                                                                                                      |   |                        |      |   |   |   |   |   |   |   |   |   |
|    Continuing      operations                                                                                              |   | $                           | (6.62     | ) |   | $ | (9.23 | ) |   | $ | 2.76 |   |
|    Discontinued      operations                                                                                            |   |                        | (0.77     | ) |   |   | (1.63 | ) |   |   | 0.69 |   |
|       Diluted                                                                                               |   | $                           | (7.39     | ) |   | $ | (10.86 | ) |   | $ | 3.45 |   |

----

|                                              | December      31 |          |   | December      31 |
|---------------------------------------------------|------------------|---------------|--------|------------------|
|                                              | 2008             | 2007          |   |             | 2008 | 2007 |
| Assets                                            |             |          |   |             |   |   | Liabilities,      Minority Interests and Shareholders’      Equity |   |   |   |   |   |
| Cash and cash      equivalents                    | $                | 11,484   |   | $                | 60,587  |   |   |   |   |   |   |   |
| Marketable      securities                        |             | —  |   |             | 1,872  |   |   |   |   |   |   |   |
| Receivables,      net of allowances               |             |          |   |             |   |   | Accounts      payable | $ | 19,021  |   | $ | 74,025  |
|    of      $12,091 and $4,656      |             | 118,245  |   |             | 200,995  |   | Accrued      compensation |   | 17,274  |   |   | 31,537  |
| Inventory                                         |             | 78,676   |   |             | 115,524  |   | Insurance      deductible reserves |   | 17,527  |   |   | 27,189  |
| Unbilled      receivables                         |             | 13,112   |   |             | 39,189  |   | Other accrued      liabilities |   | 26,981  |   |   | 28,989  |
| Income tax      receivable                        |             | 50,304   |   |             | 9,812  |   | Billings in      excess of costs and estimated |   |   |   |   |   |
| Deferred      income taxes                        |             | —  |   |             | 11,470  |   |    earnings |   | 24,054  |   |   | 20,977  |
| Prepaid      expenses and other                   |             | 4,864    |   |             | 8,973  |   | Current      portion of long-term debt |   | 39,443  |   |   | 4,923  |
| Assets of      discontinued operations            |             | 5,659    |   |             | 10,492  |   | Liabilities of      discontinued operations |   | 773  |   |   | 8,533  |
|    Current      assets             |             | 282,344  |   |             | 458,914  |   |    Current      liabilities |   | 145,073  |   |   | 196,173  |
|                                              |             |          |   |             |   |   |   |   |   |   |   |   |
| Property and      equipment                       |             |          |   |             |   |   | Insurance      deductible reserves |   | 26,208  |   |   | 27,898  |
|    Land                            |             | 33,996   |   |             | 60,052  |   | Long-term      debt |   | 287,009  |   |   | 343,937  |
|    Buildings      and improvements |             | 120,814  |   |             | 135,009  |   | Other      long-term liabilities |   | 37,163  |   |   | 44,503  |
|    Equipment                       |             | 153,843  |   |             | 185,958  |   |   |   |   |   |   |   |
|    Construction      in progress   |             | 3,440    |   |             | 16,134  |   | Minority      interests |   | —  |   |   | 8,591  |
|    Accumulated      depreciation   |             | (148,032)     |   |             | (155,083) |   |   |   |   |   |   |   |
| Assets held      for sale                         |             | 46,300   |   |             | —  |   | Commitments      and contingent liabilities |   | —  |   |   | —  |
| Marketable      securities                        |             | —  |   |             | 40,039  |   |   |   |   |   |   |   |
| Deferred      income taxes                        |             | —  |   |             | 11,269  |   | Shareholders’      equity |   |   |   |   |   |
| Deferred loan      costs                          |             | 4,485    |   |             | 4,358  |   |    Common      shares, $0.001 par value: |   |   |   |   |   |
| Other      long-term assets                       |             | 23,303   |   |             | 30,956  |   |            authorized 50 million shares; issued and |   |   |   |   |   |
| Other      intangibles, net                       |             | 19,222   |   |             | 58,310  |   |            outstanding 29.7 and 29.4 million shares |   | 29  |   |   | 29  |
| Goodwill                                          |             | —  |   |             | 14,196  |   |    Additional      paid-in capital |   | 169,146  |   |   | 164,043  |
| Assets of      discontinued operations            |             | —  |   |             | 14,732  |   |    Deferred      compensation common shares obligation |   | 878  |   |   | 1,427  |
|                                              | $                | 539,715  |   | $                | 874,844  |   |    Deferred      compensation common shares |   | (878) |   |   | (1,427) |
|                                              |             |          |   |             |   |   |    (Accumulated      deficit) retained earnings |   | (120,327) |   |   | 94,482  |
|                                              |             |          |   |             |   |   |    Accumulated      other comprehensive loss, net |   | (4,586) |   |   | (4,812) |
|                                              |             |          |   |             |   |   |       Shareholders’      equity |   | 44,262  |   |   | 253,742  |
|                                              |             |          |   |             |   |   |   | $ | 539,715  |   | $ | 874,844  |

----

|                                                                                                                                        |   | Year      Ended December 31 |     |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|----------|
|                                                                                                                                        |   | 2008                        |     |   | 2007 |   |   | 2006 |   |
|    Common      shares – beginning balance                                                                              |   | $                           | 29       |   |   | $ | 29 |   |   | $ | 29 |   |
|       Shares      issued from Incentive and Performance Plans                                                 |   |                        | —  |   |   |   | — |   |   |   | — |   |
|       Shares      issued upon exercise of warrants                                                            |   |                        | —  |   |   |   | — |   |   |   | — |   |
| Common      shares                                                                                                                          |   | $                           | 29       |   |   | $ | 29 |   |   | $ | 29 |   |
|                                                                                                                                        |   |                        |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                        |   |                        |     |   |   |   |   |   |   |   |   |   |
|    Additional      paid-in capital – beginning balance                                                                 |   | $                           | 164,043  |   |   | $ | 154,405 |   |   | $ | 141,082 |   |
|       Shares      issued from Incentive and Performance Plans                                                 |   |                        |     |   |   |   |   |   |   |   |   |   |
|          Options      exercised – Management                                             |   |                        | 9        |   |   |   | 203 |   |   |   | 1,292 |   |
|             Tax      benefit for share options exercised                        |   |                        | —  |   |   |   | 29 |   |   |   | 1,457 |   |
|          Restricted      shares – Management                                             |   |                        | (2,119   | ) |   |   | 2,614 |   |   |   | 5,220 |   |
|             Unearned      compensation                                          |   |                        | 2,119    |   |   |   | (2,614 | ) |   |   | (5,220 | ) |
|             Tax      benefit for dividends on restricted shares                 |   |                        | —  |   |   |   | 63 |   |   |   | — |   |
|          Shares      – Directors                                                         |   |                        | 402      |   |   |   | 405 |   |   |   | 415 |   |
|       Earned      compensation                                                                                |   |                        |     |   |   |   |   |   |   |   |   |   |
|          Options      – Management                                                       |   |                        | 2,780    |   |   |   | 5,177 |   |   |   | 5,103 |   |
|          Restricted      shares – Management                                             |   |                        | 1,044    |   |   |   | 3,317 |   |   |   | 3,107 |   |
|             Tax      benefit for vested restricted shares                       |   |                        | —  |   |   |   | 167 |   |   |   | — |   |
|       Shares      issued from Employee Stock Purchase Plan                                                    |   |                        | 86       |   |   |   | 277 |   |   |   | 1,949 |   |
|       Warrants                                                                                                |   |                        |     |   |   |   |   |   |   |   |   |   |
|          Fair      value of warrants issued                                                    |   |                        | 782      |   |   |   | — |   |   |   | — |   |
|          Warrants      exercised                                                               |   |                        | —  |   |   |   | — |   |   |   | — |   |
| Additional      paid-in capital                                                                                                             |   | $                           | 169,146  |   |   | $ | 164,043 |   |   | $ | 154,405 |   |
|                                                                                                                                        |   |                        |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                        |   |                        |     |   |   |   |   |   |   |   |   |   |
|    Deferred      compensation common shares obligation –      beginning      balance     |   | $                           | 1,427    |   |   | $ | 1,200 |   |   | $ | 934 |   |
|       Deferred      compensation                                                                              |   |                        | 292      |   |   |   | 364 |   |   |   | 276 |   |
|       Dividends      on common shares held                                                                    |   |                        | 11       |   |   |   | 38 |   |   |   | 43 |   |
|       Distributions                                                                                           |   |                        | (852     | ) |   |   | (175 | ) |   |   | (53 | ) |
| Deferred      compensation common      shares obligation                                                                               |   | $                           | 878      |   |   | $ | 1,427 |   |   | $ | 1,200 |   |
|                                                                                                                                        |   |                        |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                        |   |                        |     |   |   |   |   |   |   |   |   |   |
|    Deferred      compensation common shares –      beginning      balance                |   | $                           | (1,427   | ) |   | $ | (1,200 | ) |   | $ | (934 | ) |
|       Cost      of shares purchased with deferred compensation and    dividends                               |   |                        | (303     | ) |   |   | (402 | ) |   |   | (319 | ) |
|       Cost      of shares distributed                                                                         |   |                        | 852      |   |   |   | 175 |   |   |   | 53 |   |
| Deferred      compensation common shares                                                                                                    |   | $                           | (878     | ) |   | $ | (1,427 | ) |   | $ | (1,200 | ) |
|                                                                                                                                        |   |                        |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                        |   |                        |     |   |   |   |   |   |   |   |   |   |
|    Retained      earnings – beginning balance                                                                          |   | $                           | 94,482   |   |   | $ | 418,927 |   |   | $ | 328,463 |   |
|       Net      (loss) income                                                                                  |   |                        | (214,809 | ) |   |   | (312,713 | ) |   |   | 102,074 |   |
|       Cash      dividends on common shares                                                                    |   |                        | —  |   |   |   | (11,732 | ) |   |   | (11,610 | ) |
| (Accumulated      deficit) retained      earnings                                                                                           |   | $                           | (120,327 | ) |   | $ | 94,482 |   |   | $ | 418,927 |   |
|                                                                                                                                        |   |                        |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                        |   |                        |     |   |   |   |   |   |   |   |   |   |
|    Accumulated      other comprehensive (loss) income, net –      beginning      balance |   | $                           | (4,812   | ) |   | $ | (732 | ) |   | $ | 487 |   |
|       Interest      rate swap contracts – active:                                                       |   |                        |     |   |   |   |   |   |   |   |   |   |
|          Unrealized      gain (loss)                                                           |   |                        | 226      |   |   |   | (7,673 | ) |   |   | (618 | ) |
|          Notional      reduction settlement payments                                           |   |                        | 3,835    |   |   |   | — |   |   |   | — |   |
|             (Taxes)      tax benefit for unrealized gain (loss)                 |   |                        | (1,556   | ) |   |   | 2,933 |   |   |   | 231 |   |
|       Interest      rate swap contracts – terminated:                                                   |   |                        |     |   |   |   |   |   |   |   |   |   |
|          Notional      reduction settlement payments                                           |   |                        | (3,835   | ) |   |   | — |   |   |   | — |   |
|             Amortization      of payments                                       |   |                        | 926      |   |   |   | — |   |   |   | — |   |
|                Tax      benefit for unamortized payments         |   |                        | 1,106    |   |   |   | — |   |   |   | — |   |
|             Realized      gain                                                  |   |                        | —  |   |   |   | — |   |   |   | (1,459 | ) |
|                Taxes      for realized gain                      |   |                        | —  |   |   |   | — |   |   |   | 562 |   |
|       Marketable      securities:                                                                             |   |                        |     |   |   |   |   |   |   |   |   |   |
|          Unrealized      (loss) gain                                                           |   |                        | (721     | ) |   |   | 1,000 |   |   |   | 127 |   |
|             Tax      benefit (taxes) for unrealized (loss) gain                 |   |                        | 245      |   |   |   | (340 | ) |   |   | (62 | ) |
| Accumulated      other comprehensive (loss)      income,      net                                                                           |   | $                           | (4,586   | ) |   | $ | (4,812 | ) |   | $ | (732 | ) |
|                                                                                                                                        |   |                        |     |   |   |   |   |   |   |   |   |   |
| Shareholders’      Equity                                                                                                             |   | $                           | 44,262   |   |   | $ | 253,742 |   |   | $ | 572,629 |   |

----

|                                                                                                      |   | Year      EndedDecember      31 |     |
|-----------------------------------------------------------------------------------------------------------|--------|---------------------------------|----------|
|                                                                                                      |   | 2008                            |     |   | 2007 |   |   | 2006 |   |
|                                                                                                      |   |                            |     |   |   |   |   |   |   |
| Net (loss)      income                                                                                    |   | $                               | (214,809 | ) |   | $ | (312,713 | ) |   | $ | 102,074 |   |
|                                                                                                      |   |                            |     |   |   |   |   |   |   |   |   |   |
| Unrealized      gain (loss) on interest rate swap contracts:                                              |   |                            |     |   |   |   |   |   |   |   |   |   |
|    Interest      rate swap contracts – active:                                       |   |                            |     |   |   |   |   |   |   |   |   |   |
|       Unrealized      gain (loss)                                           |   | $                               | 226      |   |   | $ | (7,673 | ) |   | $ | (618 | ) |
|       Notional      reduction settlement payments                           |   |                            | 3,835    |   |   |   | — |   |   |   | — |   |
|          (Taxes)      tax benefit for unrealized gain (loss) |   |                            | (1,556   | ) |   |   | 2,933 |   |   |   | 231 |   |
|    Interest      rate swap contracts – terminated:                                   |   |                            |     |   |   |   |   |   |   |   |   |   |
|       Notional      reduction settlement payments                           |   |                            | (3,835   | ) |   |   | — |   |   |   | — |   |
|          Amortization      of payments                       |   |                            | 926      |   |   |   | — |   |   |   | — |   |
|          Tax      benefit for unamortized payments           |   |                            | 1,106    |   |   |   | — |   |   |   | — |   |
|       Realized      gain                                                    |   |                            | —  |   |   |   | — |   |   |   | (1,459 | ) |
|          Taxes      for realized gain                        |   |                            | —  |   |   |   | — |   |   |   | 562 |   |
|                                                                                                      |   | $                               | 702      |   |   | $ | (4,740 | ) |   | $ | (1,284 | ) |
| Unrealized      (loss) gain on marketable securities:                                                     |   |                            |     |   |   |   |   |   |   |   |   |   |
|    Unrealized      (loss) gain                                                             |   | $                               | (721     | ) |   | $ | 1,000 |   |   | $ | 127 |   |
|       Tax      benefit (taxes) for unrealized (loss) gain                   |   |                            | 245      |   |   |   | (340 | ) |   |   | (62 | ) |
|                                                                                                      |   | $                               | (476     | ) |   | $ | 660 |   |   | $ | 65 |   |
|                                                                                                      |   |                            |     |   |   |   |   |   |   |   |   |   |
| Comprehensive      (loss)      income                                                                     |   | $                               | (214,583 | ) |   | $ | (316,793 | ) |   | $ | 100,855 |   |

----

|                                                                                                                                                                                                     |   | Year      Ended December 31 |     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|----------|
|                                                                                                                                                                                                     |   | 2008                        |     |   | 2007 |   |   | 2006 |   |
| Operating      Activities                                                                                                                                                                                |   |                        |     |   |   |   |   |   |   |
|    Net      (loss) income                                                                                                                                                                 |   | $                           | (214,809 | ) |   | $ | (312,713 | ) |   | $ | 102,074 |   |
|    Items      in net (loss) income not using (providing) cash:                                                                                                                            |   |                        |     |   |   |   |   |   |   |   |   |   |
|       Minority      interests (loss) income, net                                                                                                                           |   |                        | (63      | ) |   |   | 853 |   |   |   | 9,493 |   |
|       Depreciation      and amortization                                                                                                                                   |   |                        | 37,611   |   |   |   | 48,781 |   |   |   | 45,284 |   |
|       Deferred      loan cost amortization                                                                                                                                 |   |                        | 1,621    |   |   |   | 1,123 |   |   |   | 1,359 |   |
|       Deferred      loan cost write off                                                                                                                                    |   |                        | 7,099    |   |   |   | — |   |   |   | — |   |
|       Ineffective      portion of interest rate swap contracts                                                                                                             |   |                        | 3,022    |   |   |   | — |   |   |   | — |   |
|       Amortization      of interest rate swap contracts notional reduction settlement      payments                                                                        |   |                        | 926      |   |   |   | — |   |   |   | — |   |
|       Amortization      of warrant discount                                                                                                                                |   |                        | 62       |   |   |   | — |   |   |   | — |   |
|       Impairment      of assets                                                                                                                                            |   |                        | 60,828   |   |   |   | 337,074 |   |   |   | 2,237 |   |
|       Share-based      compensation                                                                                                                                        |   |                        | 4,276    |   |   |   | 8,944 |   |   |   | 8,917 |   |
|       Gain      on sale of discontinued operations                                                                                                                         |   |                        | —  |   |   |   | (20,029 | ) |   |   | — |   |
|       (Gain)      loss on sale of assets, net                                                                                                                              |   |                        | (2,225   | ) |   |   | (8,789 | ) |   |   | 207 |   |
|       Realized      gain on interest rate swap contracts                                                                                                                   |   |                        | —  |   |   |   | — |   |   |   | (1,459 | ) |
|       Realized      (gain) loss on marketable securities                                                                                                                   |   |                        | (542     | ) |   |   | (408 | ) |   |   | 206 |   |
|       Deferred      income tax benefit (expense)                                                                                                                           |   |                        | 22,534   |   |   |   | (19,452 | ) |   |   | (1,125 | ) |
|       Accrued      loss for acquisition purchase obligation                                                                                                                |   |                        | —  |   |   |   | 5,500 |   |   |   | — |   |
|       Changes      in assets and liabilities, net of effects of acquisitions and         divestitures      of business units: |   |                        |     |   |   |   |   |   |   |   |   |   |
|             Receivables,      net                                                                                                            |   |                        | 85,424   |   |   |   | 68,385 |   |   |   | 128,381 |   |
|             Inventory                                                                                                                        |   |                        | 38,190   |   |   |   | 24,599 |   |   |   | 43,873 |   |
|             Unbilled      receivables                                                                                                        |   |                        | 26,804   |   |   |   | 3,610 |   |   |   | 22,702 |   |
|             Income      tax receivable                                                                                                       |   |                        | (40,492  | ) |   |   | (7,304 | ) |   |   | (2,508 | ) |
|             Prepaid      expenses and other current assets                                                                                   |   |                        | 4,298    |   |   |   | (454 | ) |   |   | (1,407 | ) |
|             Accounts      payable                                                                                                            |   |                        | (32,836  | ) |   |   | (22,621 | ) |   |   | (43,483 | ) |
|             Accrued      compensation                                                                                                        |   |                        | (14,724  | ) |   |   | (16,536 | ) |   |   | (18,823 | ) |
|             Insurance      deductible reserves                                                                                               |   |                        | (10,961  | ) |   |   | 3,557 |   |   |   | 3,059 |   |
|             Other      accrued liabilities                                                                                                   |   |                        | (8,028   | ) |   |   | (13,033 | ) |   |   | 1,483 |   |
|             Billings      in excess of costs and estimated earnings                                                                          |   |                        | 275      |   |   |   | (3,843 | ) |   |   | (29,734 | ) |
|             Other      long-term assets and liabilities                                                                                      |   |                        | 8,789    |   |   |   | (12,560 | ) |   |   | 1,588 |   |
|       Other,      net                                                                                                                                                      |   |                        | (205     | ) |   |   | 2,595 |   |   |   | 1,094 |   |
| Cash      flows (used)      provided      by operating activities                                                                                                                                        |   |                        | (23,126  | ) |   |   | 67,279 |   |   |   | 273,418 |   |
|                                                                                                                                                                                                     |   |                        |     |   |   |   |   |   |   |   |   |   |
| Investing      Activities                                                                                                                                                                                |   |                        |     |   |   |   |   |   |   |   |   |   |
|    Purchases      of property and equipment                                                                                                                                               |   |                        | (16,509  | ) |   |   | (32,995 | ) |   |   | (52,873 | ) |
|    Acquisitions      and investments in businesses, net of cash acquired                                                                                                                  |   |                        | (8,575   | ) |   |   | (80,961 | ) |   |   | (201,754 | ) |
|    Proceeds      from dispositions of property and equipment                                                                                                                              |   |                        | 14,871   |   |   |   | 16,905 |   |   |   | 2,944 |   |
|    Proceeds      from sale of discontinued operations                                                                                                                                     |   |                        | —  |   |   |   | 27,176 |   |   |   | — |   |
|    Purchase      of marketable securities                                                                                                                                                 |   |                        | (28,589  | ) |   |   | (35,239 | ) |   |   | (54,700 | ) |
|    Proceeds      from sales of marketable securities                                                                                                                                      |   |                        | 70,221   |   |   |   | 52,650 |   |   |   | 29,270 |   |
|    Other,      net                                                                                                                                                                        |   |                        | (2,123   | ) |   |   | (628 | ) |   |   | (3,150 | ) |
| Cash      flows provided      (used) by      investing activities                                                                                                                                   |   |                        | 29,296   |   |   |   | (53,092 | ) |   |   | (280,263 | ) |
|                                                                                                                                                                                                     |   |                        |     |   |   |   |   |   |   |   |   |   |
| Financing      Activities                                                                                                                                                                                |   |                        |     |   |   |   |   |   |   |   |   |   |
|    Net      borrowings (payments) under revolver                                                                                                                                          |   |                        | —  |   |   |   | — |   |   |   | (77,500 | ) |
|    Principal      payments on term notes                                                                                                                                                  |   |                        | (19,866  | ) |   |   | (3,500 | ) |   |   | (197,750 | ) |
|    Borrowings      under term note                                                                                                                                                        |   |                        | —  |   |   |   | — |   |   |   | 350,000 |   |
|    Interest      rate swap contracts notional reduction settlement payments                                                                                                               |   |                        | (3,835   | ) |   |   | — |   |   |   | — |   |
|    Net      payments on other notes                                                                                                                                                       |   |                        | (2,261   | ) |   |   | (4,505 | ) |   |   | (6,109 | ) |
|    Decrease      in book overdrafts                                                                                                                                                       |   |                        | (17,616  | ) |   |   | (7,609 | ) |   |   | (2,902 | ) |
|    Proceeds      from share options exercised                                                                                                                                             |   |                        | 8        |   |   |   | 203 |   |   |   | 1,292 |   |
|    Income      tax benefit for share-based compensation                                                                                                                                   |   |                        | —  |   |   |   | 259 |   |   |   | 1,457 |   |
|    Dividends      paid                                                                                                                                                                    |   |                        | (2,938   | ) |   |   | (11,709 | ) |   |   | (10,853 | ) |
|    Deferred      financing costs                                                                                                                                                          |   |                        | (8,847   | ) |   |   | — |   |   |   | (3,224 | ) |
|    Distributions      to minority interests                                                                                                                                               |   |                        | —  |   |   |   | (1,223 | ) |   |   | (5,731 | ) |
|    Other,      net                                                                                                                                                                        |   |                        | 82       |   |   |   | 212 |   |   |   | 2,359 |   |
| Cash      flows (used)      provided by      financing activities                                                                                                                                   |   |                        | (55,273  | ) |   |   | (27,872 | ) |   |   | 51,039 |   |
|                                                                                                                                                                                                     |   |                        |     |   |   |   |   |   |   |   |   |   |
| (Decrease)      Increase in      Cash and Cash Equivalents                                                                                                                                          |   |                        | (49,103  | ) |   |   | (13,685 | ) |   |   | 44,194 |   |
|                                                                                                                                                                                                     |   |                        |     |   |   |   |   |   |   |   |   |   |
|    Cash      and cash equivalents, beginning of period                                                                                                                                    |   |                        | 60,587   |   |   |   | 74,272 |   |   |   | 30,078 |   |
|    Cash      and cash equivalents, end of period                                                                                                                                          |   | $                           | 11,484   |   |   | $ | 60,587 |   |   | $ | 74,272 |   |
|                                                                                                                                                                                                     |   |                        |     |   |   |   |   |   |   |   |   |   |
| Supplemental      Disclosure of Cash Flow Information                                                                                                                                                    |   |                        |     |   |   |   |   |   |   |   |   |   |
|    Accrued      but unpaid dividends                                                                                                                                                      |   | $                           | —  |   |   | $ | 2,938 |   |   | $ | 2,915 |   |
|    Cash      paid for interest                                                                                                                                                            |   | $                           | 41,863   |   |   | $ | 32,827 |   |   | $ | 28,185 |   |
|    Cash      paid for income taxes                                                                                                                                                        |   | $                           | 3,141    |   |   | $ | 7,233 |   |   | $ | 69,568 |   |
|                                                                                                                                                                                                     |   |                        |     |   |   |   |   |   |   |   |   |   |
| Supplemental      Schedule of Investing Activities                                                                                                                                                       |   |                        |     |   |   |   |   |   |   |   |   |   |
|    Fair      value of assets acquired                                                                                                                                                     |   | $                           | —  |   |   | $ | 12,999 |   |   | $ | 265,105 |   |
|    Liabilities      of acquisitions (extinguished)                                                                                                                                        |   | $                           | (8,525   | ) |   | $ | (3,680 | ) |   | $ | 82,414 |   |
|    Cash      paid for acquisitions made this period                                                                                                                                       |   | $                           | 8,525    |   |   | $ | 16,679 |   |   | $ | 182,691 |   |
|    Cash      paid for acquisitions made in prior period                                                                                                                                   |   | $                           | 50       |   |   | $ | 64,282 |   |   | $ | 19,063 |   |
|                                                                                                                                                                                                     |   |                        |     |   |   |   |   |   |   |   |   |   |
| Supplemental      Schedule of Financing Activities                                                                                                                                                       |   |                        |     |   |   |   |   |   |   |   |   |   |
|    Fair      value of warrants issued                                                                                                                                                     |   | $                           | 782      |   |   | $ | — |   |   | $ | — |   |
|    Discount      on warrants issued                                                                                                                                                       |   | $                           | (782     | ) |   | $ | — |   |   | $ | — |   |

| The      accompanying notes are an integral part of these consolidated financial      statements. |
|---------------------------------------------------------------------------------------------------|

----

----

----

| ·          | concrete      block masonry, concrete services and truss manufacturing in Florida (June      2008), |
|--------------------------------|-----------------------------------------------------------------------------------------------------|

| ·     | framing      services in Virginia (March 2008)and |
|--------------------------------|---------------------------------------------------|

| ·     | three      building materials distribution businesses in Western Colorado (September      2007). |
|--------------------------------|--------------------------------------------------------------------------------------------------|

| ·     | the operating      results of these operations are presented separately from continuing      operations within the caption of discontinued operations    and |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | related      assets and liabilities are separately classified in the consolidated      balance sheet. |
|--------------------------------|-------------------------------------------------------------------------------------------------------|

----

----

----

|                                              |   | December      31 |   |
|---------------------------------------------------|--------|------------------|--------|
|                                              |   | 2008             |   |
| Property and      equipment                       |   |             |   |
|    Land                            |   | $                | 26,211 |   |
|    Buildings      and improvements |   |             | 20,089 |   |
|                                              |   | $                | 46,300 |   |

----

----

----

| ·     | closed 42      business units, |
|--------------------------------|--------------------------------|

| ·     | consolidated      15 business units with other business unitsand |
|--------------------------------|------------------------------------------------------------------|

| ·     | consolidated      administrative functions of information systems, reporting, accounts      payable and human resources. |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------|

|                             |      |   | Recognized         |   |      |   |
|----------------------------------|-----------|--------|--------------------|--------|-----------|--------|
|                             |      |   | Twelve      Months |   |      |   |
|                             |      |   | Ended              |   |      |   |
|                             | Estimated |   | December      31   |   | Total     |   |
|                             | Charges   |   | 2008               |   | Remaining |   |
| Impairment of      assets        |      | $      | 8,602              |   |      | $      | 8,602 |   |   | $ | — |   |
| Operating      lease obligations |      |   | 11,387             |   |      |   | 11,387 |   |   |   | — |   |
|                             |      | $      | 19,989             |   |      | $      | 19,989 |   |   | $ | — |   |

|                             | Recognized               |   |     |   |     |   | Liability        |   |
|----------------------------------|--------------------------|--------|----------|--------|----------|--------|------------------|--------|
|                             | Twelve      Months Ended |   |     |   |     |   | Balance      at  |   |
|                             | December      31         |   | Cash     |   | Non-cash |   | December      31 |   |
|                             | 2008                     |   | Payments |   | Charges  |   | 2008             |   |
| Impairment of      assets        |                     | $      | 8,602    |   |     | $      | —          |   |   | $ | 8,602 |   |   | $ | — |   |
| Operating      lease obligations |                     |   | 11,387   |   |     |   | 390              |   |   |   | 1,353 |   |   |   | 9,644 |   |
|                             |                     | $      | 19,989   |   |     | $      | 390              |   |   | $ | 9,955 |   |   | $ | 9,644 |   |

----

| ·     | $23.3 million      for certain customer relationships and covenants not to      compete, |
|--------------------------------|------------------------------------------------------------------------------------------|

| ·     | $13.8 million      for goodwill, |
|--------------------------------|----------------------------------|

| ·     | $2.6 million      for certain property and equipment held for sale  and |
|--------------------------------|-------------------------------------------------------------------------|

| ·     | $1.0 million      for leasehold improvements. |
|--------------------------------|-----------------------------------------------|

| ·     | third quarter      of 2008: |
|--------------------------------|-----------------------------|

| ·     | second      quarter of 2008: |
|--------------------------------|------------------------------|

----

| ·     | $30.0 million      for certain customer relationships, |
|--------------------------------|--------------------------------------------------------|

| ·     | $242.0      million for goodwill and |
|--------------------------------|--------------------------------------|

| ·     | $0.2 million      for certain equipment. |
|--------------------------------|------------------------------------------|

----

| ·     | In June 2008,      we discontinued concrete block masonry, concrete services and truss      manufacturing in Florida.  These business units represented      approximately 6% of sales. |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | In March      2008, we discontinued framing services in Virginia.  This      business unit represented less than 1% ofsales. |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·     | In September      2007, we sold three building materials distribution businesses in Western      Colorado.  The businesses were sold for $11.4 million,      consisting of $9.6 million cash and a $1.8 million note receivable and      resulted in recognition of an initial gain of $3.7 million.  In      December 2007, the remaining real estate for one of these operations was      sold for $17.6 million cash and resulted in recognition of a gain of $16.3      million.  These business units represented approximately 1% of      sales. |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        |   | December      31 |   |
|-------------|--------|------------------|--------|
|        |   | 2008             |   |   | 2007 |   |
| Assets      |   | $                | 5,659  |   |   | $ | 25,224 |   |
| Liabilities |   | $                | 773    |   |   | $ | 8,533 |   |

|                                                             |   | Year      Ended December 31 |    |
|------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                             |   | 2008                        |    |   | 2007 |   |   | 2006 |   |
| Sales                                                            |   |                        |    |   |   |   |   |   |   |
|    Building      products                         |   | $                           | 2,021   |   |   | $ | 33,955 |   |   | $ | 65,036 |   |
|    Construction      services                     |   | $                           | 38,624  |   |   | $ | 101,649 |   |   | $ | 228,971 |   |
|                                                             |   |                        |    |   |   |   |   |   |   |   |   |   |
| Income (loss)      from discontinued   operations |   | $                           | (22,353 | ) |   | $ | (46,946 | ) |   | $ | 20,529 |   |

----

|                                                                                                  |   | Year      Ended December 31 |     |
|-------------------------------------------------------------------------------------------------------|--------|-----------------------------|----------|
|                                                                                                  |   | 2008                        |     |   | 2007 |   |   | 2006 |   |
| (Loss) income      from continuing operations                                                         |   | $                           | (192,456 | ) |   | $ | (265,767 | ) |   | $ | 81,545 |   |
| Income (loss)      from discontinued operations                                                       |   |                        | (22,353  | ) |   |   | (46,946 | ) |   |   | 20,529 |   |
|    Net      (loss) income                                                              |   | $                           | (214,809 | ) |   | $ | (312,713 | ) |   | $ | 102,074 |   |
|                                                                                                  |   |                        |     |   |   |   |   |   |   |   |   |   |
|    Weighted      average shares - basic                                                |   |                        | 29,081   |   |   |   | 28,807 |   |   |   | 28,603 |   |
|    Effect      of dilutive:                                                            |   |                        |     |   |   |   |   |   |   |   |   |   |
|       Share      options                                                |   |                        | —  |   |   |   | — |   |   |   | 830 |   |
|       Restricted      shares                                            |   |                        | —  |   |   |   | — |   |   |   | 156 |   |
|       Warrants                                                          |   |                        | —  |   |   |   | — |   |   |   | — |   |
|    Weighted      average shares - assuming      dilution |   |                        | 29,081   |   |   |   | 28,807 |   |   |   | 29,589 |   |
|                                                                                                  |   |                        |     |   |   |   |   |   |   |   |   |   |
| Net (loss)      income per share:                                                                     |   |                        |     |   |   |   |   |   |   |   |   |   |
|    Continuing      operations                                                          |   |                        | $(6.62   | ) |   |   | $(9.23 | ) |   |   | $2.85 |   |
|    Discontinued      operations                                                        |   |                        | (0.77    | ) |   |   | (1.63 | ) |   |   | 0.72 |   |
|       Basic                                                             |   |                        | $(7.39   | ) |   |   | $(10.86 | ) |   |   | $3.57 |   |
|                                                                                                  |   |                        |     |   |   |   |   |   |   |   |   |   |
|    Continuing      operations                                                          |   |                        | $(6.62   | ) |   |   | $(9.23 | ) |   |   | $2.76 |   |
|    Discontinued      operations                                                        |   |                        | (0.77    | ) |   |   | (1.63 | ) |   |   | 0.69 |   |
|       Diluted                                                           |   |                        | $(7.39   | ) |   |   | $(10.86 | ) |   |   | $3.45 |   |
|                                                                                                  |   |                        |     |   |   |   |   |   |   |   |   |   |
| Cash dividends      declared per share                                                                |   |                        | —  |   |   |   | $0.40 |   |   |   | $0.40 |   |

| ·     | options and      warrants with exercise prices greater than the average market value of the      common shares (out-of-the-money)and |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| ·     | unrecognized      compensation expense for restricted shares with after-tax proceeds greater      than the average market value of the common  shares. |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                        |   | Year      Ended December 31 |            |
|---------------------------------------------|--------|-----------------------------|-----------------|
|                                        |   | 2008                        |            |   | 2007 |   |   | 2006 |   |
| Average market      value of shares         |   |                        | $3              |   |   |   | $14 |   |   |   | $30 |   |
| Share      options:                         |   |                        |            |   |   |   |   |   |   |   |   |   |
|    Exercise      price range |   |                        | $5      to $38  |   |   |   | $5 to      $38 |   |   |   | $23 to      $38 |   |
|    Not      dilutive         |   |                        | 2,627           |   |   |   | 2,978 |   |   |   | 819 |   |
| Restricted      shares:                     |   |                        |            |   |   |   |   |   |   |   |   |   |
|    Grant      price range    |   |                        | $15      to $38 |   |   |   | $15 to      $42 |   |   |   | — |   |
|    Not      dilutive         |   |                        | 214             |   |   |   | 410 |   |   |   | — |   |
| Warrants:                                   |   |                        |            |   |   |   |   |   |   |   |   |   |
|    Exercise      price       |   |                        | $0.47           |   |   |   | — |   |   |   | — |   |
|    Not      dilutive         |   |                        | 2,825           |   |   |   | — |   |   |   | — |   |

----

| ·     | In March      2007, we acquired a concrete services business in Fresno, California for      approximately $0.7 million in cash. |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·     | In December      2006, we acquired a distribution services business in Southern California      for $1.6 million in cash. |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·     | In August      2006, we acquired a window installation business in Arizona for $13.9      million in cash. |
|--------------------------------|------------------------------------------------------------------------------------------------------------|

| ·     | In July 2006,      we acquired a framing services business in Southern California for $78.6      million in cash.  Additional consideration of $3.1 million was      paid in the third quarter of 2007 for operating performance through June      2007.  Additional cash payments may be required based on      operating performance through June2009. |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | In June 2006,      we acquired a building materials distribution and truss manufacturing      business in Eastern Idaho for $5.1 million in  cash. |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | In April      2006, we acquired a concrete services business in Northern Arizona for      $1.5 million in cash. |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------|

| ·     | In April      2006, we acquired a wall panel and truss manufacturing business in Palm      Springs, California for $6.7 million incash. |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| ·     | In February      2006, we acquired 3 facilities providing building materials distribution      and millwork services in Houston, Texas for $20.6 million in      cash. |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | In January      2006, we acquired framing businesses in Palm Springs, California and Reno,      Nevada for $57.1 million in cash.  Additional cash payments may      be required based on operating performance through December      2009. |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | In June 2008,      we acquired the remaining 40% interest in SelectBuild Mechanical for $0.2      million in cash.  In October 2004, we formed this venture for an      initial 60% interest for $0.3 million in cash.  SelectBuild      Mechanical provides heating, ventilation and air conditioning services in      Las Vegas, Nevada. |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·     | In January      2008, we were required to purchase the remaining 49% interest in      SelectBuild Illinois (RCI Construction) for $8.3 million in cash of which      $2.4 million was paid in January 2008 and $5.9 million was paid in July      2008.  The fair value of SelectBuild Illinois did not exceed its      net book value.  As a result, the $5.5 million excess of the      purchase price for the minority interest over the recorded amount for the      minority interest in SelectBuild Illinois was recognized as an expense in      Other income, net in December 2007.  In January 2005, we      acquired an initial 51% interest for $4.9 million in      cash.  SelectBuild Illinois provides framing services to      production homebuilders in the greater Chicago  area. |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | In September      2007, we acquired the remaining 49% interest in SelectBuild Trim for $0.5      million in cash.  In January 2007, we formed this venture for an      initial 51% interest for $0.5 million in cash.  SelectBuild Trim      provides door and molding installation services in Las Vegas,      Nevada. |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | In September      2007, we acquired the remaining 49% interest in A-1 Building Components,      LLC (A-1 Truss) for $5.0 million in cash.  In September 2004, we      acquired an initial 51% interest for $2.3 million in cash.  A-1      Truss manufactured trusses in Fort Pierce, Florida.  These      operations were discontinued during2008. |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | In May 2007,      we acquired the remaining 33% interest in SelectBuild Mid-Atlantic (WBC      Mid-Atlantic) for no consideration pursuant to the operating      agreement.  In October 2003, we acquired an initial 67% interest      for $5.1 million in cash and $0.2 million of our common      shares.  SelectBuild Mid-Atlantic provided framing services to      production homebuilders in Delaware, Maryland and      Virginia.  These operations were discontinued during      2008. |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | In April      2007, we acquired the remaining 27% interest in Riggs Plumbing for $10.5      million in cash.  In July 2005, we acquired an additional 13%      interest for $1.4 million in cash and in April 2005, acquired an initial      60% interest for $17.8 million in cash.  Riggs Plumbing provides      plumbing services to production homebuilders in the Phoenix and Tucson      markets.  |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | In November      2006, we acquired the remaining 49% interest in BBP Companies for $22.8      million in cash.  In July 2005, we acquired an initial 51%      interest for $9.4 million in cash and $1.0 million of our common      shares.  BBP Companies provide concrete services to production      homebuilders in Arizona. |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | In January      2006, we acquired the remaining 20% interest in SelectBuild Florida (WBC      Construction, LLC) for $36.0 million in cash.  In August 2005,      we acquired an additional 20% interest for $24.8 million in cash and in      January 2003, acquired an initial 60% interest for $22.9 million in cash      and $1.0 million of our common shares.  SelectBuild Florida      provided concrete block masonry and concrete services to production      homebuilders in Florida.  These operations were discontinued      during 2008. |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                  | December      31 |    |   | December      31 |
|---------------------------------------|------------------|---------|--------|------------------|
|                                  | 2008             | 2007    |   |             | 2008 |   | 2007 |
| Receivables                           | $                | — |   | $                | (21) |   | Other accrued      liabilities | $ | (47) |   | $ | (60,787) |
| Prepaid      expenses and other       |             | — |   |             | 18  |   |   |   |   |   |   |   |
|    Current      assets |             | — |   |             | (3) |   |    Current      liabilities |   | (47) |   |   | (60,787) |
|                                  |             |    |   |             |   |   |   |   |   |   |   |   |
| Property and      equipment           |             | — |   |             | 216  |   | Deferred      income taxes |   | —  |   |   | (917) |
| Other      intangibles, net           |             | — |   |             | 2,287  |   | Minority      interests |   | (8,528) |   |   | (3,680) |
| Goodwill                              |             | — |   |             | 13,077  |   |   |   |   |   |   |   |
|                                  | $                | — |   | $                | 15,577  |   |   | $ | (8,575) |   | $ | (65,384) |

----

|                              |   | December      31 |    |
|-----------------------------------|--------|------------------|---------|
|                              |   | 2008             |    |   | 2007 |   |
| U.S.      government and agencies |   | $                | — |   |   | $ | 18,380 |   |
| Asset backed      securities      |   |             | — |   |   |   | 9,798 |   |
| Corporate      securities         |   |             | — |   |   |   | 13,733 |   |
|                              |   | $                | — |   |   | $ | 41,911 |   |

|                     |   | December      31 |    |
|--------------------------|--------|------------------|---------|
|                     |   | 2008             |    |   | 2007 |   |
| Less than 1      year    |   | $                | — |   |   | $ | 1,872 |   |
| Due in 1 to 2      years |   |             | — |   |   |   | 12,683 |   |
| Due in 2 to 5      years |   |             | — |   |   |   | 27,356 |   |
|                     |   | $                | — |   |   | $ | 41,911 |   |

----

|                          |   | December      31, 2008    |   |
|-------------------------------|--------|---------------------------|--------|
|                          |   | GrossCarrying      Amount |   |   | Accumulated      Amortization |   |   | Net      Carrying Amount |   |
| Customer      relationships   |   | $                         | 29,074 |   |   | $ | (10,802 | ) |   | $ | 18,272 |   |
| Covenants not      to compete |   |                      | 4,089  |   |   |   | (3,139 | ) |   |   | 950 |   |
| Favorable      leases         |   |                      | 382    |   |   |   | (382 | ) |   |   | — |   |
|                          |   | $                         | 33,545 |   |   | $ | (14,323 | ) |   | $ | 19,222 |   |

|                          |   | December      31, 2007    |   |
|-------------------------------|--------|---------------------------|--------|
|                          |   | GrossCarrying      Amount |   |   | Accumulated      Amortization |   |   | Net      Carrying Amount |   |
| Customer      relationships   |   | $                         | 80,495 |   |   | $ | (27,271 | ) |   | $ | 53,224 |   |
| Covenants not      to compete |   |                      | 10,611 |   |   |   | (6,057 | ) |   |   | 4,554 |   |
| Favorable      leases         |   |                      | 780    |   |   |   | (248 | ) |   |   | 532 |   |
|                          |   | $                         | 91,886 |   |   | $ | (33,576 | ) |   | $ | 58,310 |   |

|                                     |   | December      31 |    |
|------------------------------------------|--------|------------------|---------|
|                                     |   | 2008             |    |   | 2007 |   |
| Beginning      balance                   |   | $                | 14,196  |   |   | $ | 248,464 |   |
|    Goodwill      acquired |   |             | — |   |   |   | 7,690 |   |
|    Impairment             |   |             | (14,196 | ) |   |   | (241,958 | ) |
|                                     |   | $                | — |   |   | $ | 14,196 |   |

----

|                                     |   | December      31 |    |
|------------------------------------------|--------|------------------|---------|
|                                     |   | 2008             |    |   | 2007 |   |
| Beginning      balance                   |   | $                | 3,460   |   |   | $ | 41,362 |   |
|    Goodwill      acquired |   |             | — |   |   |   | (4,656 | ) |
|    Impairment             |   |             | (3,460  | ) |   |   | (33,246 | ) |
|                                     |   | $                | — |   |   | $ | 3,460 |   |

----

| As      of December      31, 2008                                                                      |   |   |    |   |                                                                                                                      |   |   | Notional      Amount      of  |   | Effective      Interest Rate |
|--------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------|--------|------------------------------|
|                                                                                                   |   |   | Balance |   | Stated      Interest      Rate                                                                                            |   |   | Interest      Rate      Swaps |   | Average      for      Year   |   | As      ofDecember      31 |
| Revolver                                                                                               |   | $      | — |   | LIBOR      (minimum      of 3%) plus 5.25%      ORPrime      plus  3.25%and      0.50%      commitment fee |   | $      | —                       |   | 12.9%                        |   | n/a |
|                                                                                                   |   |   |    |   |                                                                                                                      |   |   |                          |   |                         |   |   |
| Term      note                                                                                         |   |   | 325,759 |   | LIBOR      (minimum      of 3%) plus      5.25%      ORPrime      plus 3.25%                                              |   |   | 135,124                       |   | 9.6%                         |   | 11.5% |
|                                                                                                   |   |   |    |   |                                                                                                                      |   |   |                          |   |                         |   |   |
| Other                                                                                                  |   |   | 1,412   |   | Various                                                                                                                   |   |   | —                       |   | —       |   | —    |
|                                                                                              |   |   | 327,171 |   |                                                                                                                      |   | $      | 135,124                       |   |                         |   |   |
|                                                                                                   |   |   |    |   |                                                                                                                      |   |   |                          |   |                         |   |   |
| Less:  Current      portion                                                                  |   |   | 39,443  |   |                                                                                                                      |   |   |                          |   |                         |   |   |
| Less:  Unamortized           discount |   |   | 719     |   |                                                                                                                      |   |   |                          |   |                         |   |   |
|                                                                                              |   | $      | 287,009 |   |                                                                                                                      |   |   |                          |   |                         |   |   |

| As      of December 31, 2007          |   |   |    |   |                                                                   |   |   | Notional      Amount      of  |   | Effective      Interest Rate |
|---------------------------------------|--------|--------|---------|--------|------------------------------------------------------------------------|--------|--------|-------------------------------|--------|------------------------------|
|                                  |   |   | Balance |   | Stated      Interest      Rate                                         |   |   | Interest      Rate      Swaps |   | Average      for      Year   |   | As      ofDecember      31 |
| Revolver                              |   | $      | — |   | LIBOR plus      1.50% OR Prime plus 0.25%and 0.25%      commitment fee |   | $      | —                       |   | 8.8%                         |   | n/a |
|                                  |   |   |    |   |                                                                   |   |   |                          |   |                         |   |   |
| Term      note                        |   |   | 345,625 |   | LIBOR plus      2.50% OR Prime plus 1.25%                              |   |   | 200,000                       |   | 7.7%                         |   | 7.5% |
|                                  |   |   |    |   |                                                                   |   |   |                          |   |                         |   |   |
| Other                                 |   |   | 3,235   |   | Various                                                                |   |   | —                       |   | —       |   | —    |
|                             |   |   | 348,860 |   |                                                                   |   | $      | 200,000                       |   |                         |   |   |
|                             |   |   |    |   |                                                                   |   |   |                          |   |                         |   |   |
| Less:  Current      portion |   |   | 4,923   |   |                                                                   |   |   |                          |   |                         |   |   |
|                             |   | $      | 343,937 |   |                                                                   |   |   |                          |   |                         |   |   |

----

| ·     | 70% of      certain accounts receivable, |
|--------------------------------|------------------------------------------|

| ·     | 50% of      certain inventory, |
|--------------------------------|--------------------------------|

| ·     | 25% of      certain other inventory, |
|--------------------------------|--------------------------------------|

| ·     | approximately      75% of the appraised value of certain property and equipment      and |
|--------------------------------|------------------------------------------------------------------------------------------|

| ·     | 50% of the      appraised value of real estate. |
|--------------------------------|-------------------------------------------------|

----

----

| ·     | Revolver |
|--------------------------------|----------|

| ·     | Term      Note |
|--------------------------------|----------------|

----

| 2009       |   | $      | 39,443  |   |
|------------|--------|--------|---------|--------|
| 2010       |   |   | 3,727   |   |
| 2011       |   |   | 283,189 |   |
| 2012       |   |   | 65      |   |
| 2013       |   |   | 70      |   |
| Thereafter |   |   | 677     |   |
|       |   | $      | 327,171 |   |

----

|                              |   | December      31,                                 |
|-----------------------------------|--------|---------------------------------------------------|
|                              |   | 2008                                              |   | 2007 |
|                              |   | Balance      Sheet                                | Fair |   | Balance      Sheet | Fair |
|                              |   | Classification                                    | Value |   | Classification | Value |
| Interest rate      swap contracts |   | Other      long-term   liabilities | $ | 7,514 |   | Other      long-term         liabilities | $ | 8,553 |

|                                                | Gain      (Loss) Recognized in Accumulated OtherComprehensive      (Loss) Income, Net |   |
|-----------------------------------------------------|---------------------------------------------------------------------------------------|--------|
|                                                | Year      Ended December 31                                                           |   |
|                                                |                                                                                  | 2008   |   |   | 2007 |   | 2006 |   |
| Cash Flow      Hedging Relationships:               |                                                                                  |   |   |   |   |   |   |   |   |
|    Interest      rate swap contracts |                                                                                  | $      | 226 |   |   | $ | (7,673 | ) |   | $ | (2,077 | ) |

|                                     | Loss      (Gain) Reclassified from Accumulated OtherComprehensive      (Loss) Income, Net |   |
|------------------------------------------|-------------------------------------------------------------------------------------------|--------|
|                                     | Year      Ended December 31                                                               |   |
|                                     |                                                                                      | 2008   |   |   | 2007 |   | 2006 |   |
| Statement of      Operations Location:   |                                                                                      |   |   |   |   |   |   |   |   |
|          Interest expense |                                                                                      | $      | 3,723 |   |   | $ | (465 | ) |   | $ | (648 | ) |

----

| Employee Stock      Purchase Plan | 1.4      million |
|-----------------------------------|------------------|
| 2008 Stock      Incentive Plan    | 1.9      million |
| Warrants                          | 2.8      million |

| Expected term      (years)       |     5.5 |
|----------------------------------|-----------------------------|
| Expected      volatility         | 64.6%                       |
| Expected      dividend yield     |  0.0%                  |
| Risk-free      interest rate     |  3.0%                  |
| Exercise      price              | $0.47                       |
| Weighted      average fair value | $0.28                       |

----

|                |   | 2008   |     |   | 2007   |   |   | 2006   |   |
|---------------------|--------|--------|----------|--------|--------|--------|--------|--------|--------|
| First      quarter  |   |   | $— |   |   |   | $0.10  |   |   |   | $0.10 |   |
| Second      quarter |   |   | —  |   |   |   | 0.10   |   |   |   | 0.10 |   |
| Third      quarter  |   |   | —  |   |   |   | 0.10   |   |   |   | 0.10 |   |
| Fourth      quarter |   |   | —  |   |   |   | 0.10   |   |   |   | 0.10 |   |
|                |   |   | $— |   |   |   | $0.40  |   |   |   | $0.40 |   |

----

| ·     | Compensation      deferred and invested in third-party investment options is recorded in      Other long-term assets and Other long-term liabilities.  As the      obligation is settled for the value of the underlying investments, changes      in the fair value of the investments are recognized in Other income and      changes in the fair value of the liability are recognized in Selling,      general and administrative expenses.  Fair value is based on      market quotes.  The fair value of these investments was $4.0      million at December 31, 2008 and $13.5 million at December 31,      2007. |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·          | Compensation      deferred and invested in our common shares is recorded as a component of      shareholders’ equity.  As the obligation is settled for the      fixed number of common shares purchased, changes in fair value are not      recognized.  Rather, purchases and distributions of the common      shares are recorded at historical cost.  The historical cost of      these common shares was $0.9 million or 98,565 common shares at December      31, 2008 and $1.4 million or 105,189 common shares at December 31,      2007. |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | 65% of the      contributions are invested in company-owned life insurance polices for      certain participants. |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------|

| ·     | 35% of the      contributions are made in our common shares and distributed to the savings      and retirement plans of certainparticipants. |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | no      contributions or return to participants and no contribution or return was      required for the employment agreements of certain executives for      2008. |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | no      contribution to participants, however a return was provided to      participants as well as the contribution and return required by employment      agreements of certain executives for 2007.  The return for      participants and contribution and return required by employment agreements      was $2.7 million for 2007. |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·     | the      contribution and return to participants as well as the contribution and      return required by the employment agreements of certain executives for      2006.  The contribution and return for participants and certain      executives was $7.5 million for2006. |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Grants of      options under the 2008 Stock Incentive Plan vest ratably over a maximum of      5 years from the date of grant and expire after 10 years if      unexercised.  Under certain circumstances, some or all of the      options may vest earlier.  Options are to be awarded with      exercise prices equal to the closing share price of our common shares on      the date of grant. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | Grants of      options under the 2004 Incentive and Performance Plan vest ratably over 3      to 4 years from the date of grant and expire after 7 years if      unexercised.  Under certain circumstances, some or all of the      options may vest earlier.  Options were awarded with exercise      prices equal to the closing share price of our common shares on the date      of grant.  No further grants will be made under this      plan. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Grants of      options under the 2000 Stock Incentive Plan vest ratably through the end      of the fourth year from the date of grant and expire after 10 years if      unexercised.  Under certain circumstances, some or all of the      options may vest earlier.  Options were awarded with exercise      prices equal to the closing share price of our common shares on the date      of grant.  No further grants will be made under this      plan. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                             | Year      Ended December 31 |
|----------------------------------|-----------------------------|
|                             | 2008                        |   | 2007 |   | 2006 |
| Expected term      (years)       | —                     |   |      5.2 |   |     5.6 |
| Expected      volatility         | —                     |   | 54.5% |   | 48.6% |
| Expected      dividend yield     | —                     |   |  2.0% |   |   0.7% |
| Risk-free      interest rate     | —                     |   |  4.5% |   |   3.8% |
| Exercise      price              | —                     |   |     $18 |   |      $38 |
| Weighted      average fair value | —                     |   |       $8 |   |      $18 |

|                                                              | Year      Ended December 31 |
|-------------------------------------------------------------------|-----------------------------|
|                                                              | 2008                        |   | 2007 |   | 2006 |
|                                                              | Shares                      |   | Weighted      Average Exercise Price |   | Weighted      Average Remaining Contractual Term (years) |   | Shares |   | Weighted      Average Exercise Price |   | Shares |   | Weighted      Average Exercise Price |
| Outstanding at      beginning   of      the period | 2,978                  |   | $15 |   | 4.5 |   | 2,521  |   | $14 |   | 2,300  |   | $10 |
|    Granted                                         | —                |   |  $— |   |   |   | 541  |   | $18 |   | 409  |   | $38 |
|    Exercised                                       | (1)                         |   |   $6 |   |   |   | (33) |   |  $6 |   | (176) |   |   $7 |
|    Forfeited                                       | (350)                       |   | $20 |   |   |   | (51) |   | $28 |   | (12) |   | $22 |
| Outstanding at      end of the   period            | 2,627                  |   | $14 |   | 3.2 |   | 2,978  |   | $15 |   | 2,521  |   | $14 |
|                                                              |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable at      end   of      the period       | 2,245                  |   | $13 |   | 2.9 |   | 2,079  |   | $11 |   | 1,658  |   |   $8 |

----

|                                        | Year      Ended December 31 |
|---------------------------------------------|-----------------------------|
|                                        | 2008                        |   | 2007 |   | 2006 |
| Weighted      average grant-date fair value | $—                    |   | $8 |   | $18 |
| Intrinsic      value of options exercised   | $1                          |   | $299 |   | $3,832 |
| Fair value of      options vested           | $3,767                      |   | $4,665 |   | $2,955 |

|                          |   | Options      Outstanding |   | Options      Exercisable           |
|-------------------------------|--------|--------------------------|--------|------------------------------------|
| Exercise      Price           |   | Shares                   |   | WeightedAverageExercise      Price |   | Intrinsic      Value |   | WeightedAverageRemainingContractualLife      (years) |   | Shares |   | WeightedAverageExercise      Price |   | Intrinsic      Value |
| $5                            |   | 534                      |   |   $5                     |   |   |   | 1.5 |   | 534 |   |   $5 |   |   |
| $7                            |   | 573                      |   |   $7                     |   |   |   | 3.5 |   | 573 |   |   $7 |   |   |
| $8                            |   | 179                      |   |   $8                     |   |   |   | 5.1 |   | 179 |   |   $8 |   |   |
| $9                            |   | 284                      |   |   $9                     |   |   |   | 2.1 |   | 284 |   |   $9 |   |   |
| $17 to      $18               |   | 413                      |   | $18                                |   |   |   | 5.1 |   | 117 |   | $18 |   |   |
| $23                           |   | 345                      |   | $23                                |   |   |   | 2.9 |   | 345 |   | $23 |   |   |
| $38                           |   | 299                      |   | $38                                |   |   |   | 3.6 |   | 213 |   | $38 |   |   |
|                          |   | 2,627                    |   | $14                                |   |   |   |   |   | 2,245 |   | $13 |   |   |
| In-the-money:                 |   |                     |   |                               |   |   |   |   |   |   |   |   |   |   |
|    Outstanding |   | —                  |   |                               |   | $— |   |   |   |   |   |   |   |   |
|    Exercisable |   |                     |   |                               |   |   |   |   |   | — |   |   |   | $— |

----

|                                                                               | Year      Ended December 31 |
|------------------------------------------------------------------------------------|-----------------------------|
|                                                                               | 2008                        |   | 2007 |   | 2006 |
|                                                                               | Shares                      |   | Weighted      Average Grant Date Fair Value |   | Shares |   | Weighted      Average Grant Date Fair Value |   | Shares |   | Weighted      Average Grant Date Fair Value |
| Nonvested at      beginning of            the period | 410                    |   | $26 |   | 396  |   | $24 |   | 258  |   | $16 |
|    Granted                                                          | —                |   |  $— |   | 172  |   | $18 |   | 139  |   | $38 |
|    Vested                                                           | (118)                       |   | $23 |   | (142) |   | $11 |   | —  |   |  $— |
|    Forfeited                                                        | (78)                        |   | $27 |   | (16) |   | $30 |   | (1) |   | $38 |
| Nonvested at      end of the period                                                | 214                    |   | $26 |   | 410  |   | $26 |   | 396  |   | $24 |

|                                         | Year      Ended December 31            |
|----------------------------------------------|----------------------------------------|
|                                         | 2008                                   |   | 2007 |   | 2006 |
| Weighted      average grant-date fair value  |      $— |   |     $18 |   |      $38 |
| Fair value of      restricted shares granted |      $— |   | $3,005 |   | $5,220 |
| Fair value of      restricted shares vested  | $2,761                                 |   | $1,556 |   |      $— |

|                                                                                  | Number      of Securities to be Issued      Upon Exercise of Outstanding      Options, Warrants      and Rights |   | Weighted      Average Exercise      Price of Outstanding      Options, Warrants      and Rights |   | Number      of Securities Remaining      Available for Future      Issuance Under Equity      Compensation Plans |
|---------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------|
| Equity      compensation plans   approved      by security holders     | 2,841                                                                                            |   | $13.11                                                                                          |   | 1,901                                                                                                            |
| Equity      compensation plans not   approved      by security holders |         2,825 (1)                                                                                     |   | $0.47                                                                                           |   |       —                                                                      |
|       Total                                             | 5,666                                                                                            |   | $6.81                                                                                           |   | 1,901                                                                                                            |

----

----

|                                                |   | Year      Ended December 31 |   |
|-----------------------------------------------------|--------|-----------------------------|--------|
|                                                |   | 2008                        |   |   | 2007 |   |   | 2006 |   |
|                                                |   |                        |   |   | EffectiveRate |   |   |   |   |   | EffectiveRate |   |   |   |   |   | EffectiveRate |   |
| Continuing      operations:                         |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income      tax benefit (expense) |   | $                           | 23,409 |   |   |   | 10.8 | % |   | $ | 25,670 |   |   |   | 8.8 | % |   | $ | (44,893 | ) |   |   | (33.4 | )% |
| Discontinued      operations:                       |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income      tax (expense)         |   | $                           | (1,860 | ) |   |   | (9.1 | )% |   | $ | (4,990 | ) |   |   | (11.9 | )% |   | $ | (11,914 | ) |   |   | (36.7 | )% |

|                       |   | Year      Ended December 31 |    |
|----------------------------|--------|-----------------------------|---------|
|                       |   | 2008                        |    |   | 2007 |   |   | 2006 |   |
| Current income      taxes  |   |                        |    |   |   |   |   |   |   |
|    Federal  |   | $                           | 44,350  |   |   | $ | 6,561 |   |   | $ | (42,830 | ) |
|    State    |   |                        | (352    | ) |   |   | (343 | ) |   |   | (3,188 | ) |
|                       |   |                        | 43,998  |   |   |   | 6,218 |   |   |   | (46,018 | ) |
|                       |   |                        |    |   |   |   |   |   |   |   |   |   |
| Deferred      income taxes |   |                        |    |   |   |   |   |   |   |   |   |   |
|    Federal  |   |                        | (15,526 | ) |   |   | 17,832 |   |   |   | 1,043 |   |
|    State    |   |                        | (5,063  | ) |   |   | 1,620 |   |   |   | 82 |   |
|                       |   |                        | (20,589 | ) |   |   | 19,452 |   |   |   | 1,125 |   |
|                       |   |                        |    |   |   |   |   |   |   |   |   |   |
|                       |   | $                           | 23,409  |   |   | $ | 25,670 |   |   | $ | (44,893 | ) |

----

|                                            |   | Year      Ended December 31 |    |
|-------------------------------------------------|--------|-----------------------------|---------|
|                                            |   | 2008                        |    |   | 2007 |   |   | 2006 |   |
| Statutory      rate                             |   |                        | 35.0    | % |   |   | 35.0 | % |   |   | 35.0 | % |
| State income      taxes, net of federal benefit |   |                        | 3.1     |   |   |   | 3.3 |   |   |   | 0.9 |   |
| Valuation      allowance                        |   |                        | (24.8   | )  |   |   | (25.2 | )  |   |   | — |   |
| Non-deductible      goodwill                    |   |                        | (0.6    | )  |   |   | (4.3 | )  |   |   | — |   |
| Non-deductible      items                       |   |                        | (0.1    | )  |   |   | (0.3 | )  |   |   | 0.5 |   |
| Earnings of      minority interests             |   |                        | — |   |   |   | — |   |   |   | (1.5 | )  |
| Domestic      production deduction              |   |                        | — |   |   |   | 0.1 |   |   |   | (0.7 | )  |
| Other                                           |   |                        | (1.8    | )  |   |   | 0.2 |   |   |   | (0.8 | )  |
|                                            |   |                        | 10.8    | % |   |   | 8.8 | % |   |   | 33.4 | % |

|                                                           |   | December      31 |     |
|----------------------------------------------------------------|--------|------------------|----------|
|                                                           |   | 2008             |     |   | 2007 |   |
| Deferred tax      assets:                                      |   |             |     |   |   |   |
|    Accounts      receivable                     |   | $                | 6,324    |   |   | $ | 1,486 |   |
|    Inventory                                    |   |             | 2,344    |   |   |   | 2,272 |   |
|    Goodwill      and other intangibles, net     |   |             | 83,961   |   |   |   | 101,491 |   |
|    Accrued      compensation                    |   |             | 10,996   |   |   |   | 9,332 |   |
|    Insurance      deductible reserves           |   |             | 16,649   |   |   |   | 5,440 |   |
|    Share-based      compensation                |   |             | 6,007    |   |   |   | 6,280 |   |
|    Other      accrued liabilities               |   |             | 4,485    |   |   |   | 5,184 |   |
|    Interest      rate swap contracts            |   |             | 1,753    |   |   |   | 3,266 |   |
|    Investment      in minority interests        |   |             | —  |   |   |   | 379 |   |
|    Other                                        |   |             | 193      |   |   |   | 308 |   |
|    Federal      net operating loss carryforward |   |             | 24,210   |   |   |   | — |   |
|    State      net operating loss carryforward   |   |             | 6,352    |   |   |   | — |   |
|    Alternative      minimum tax credits         |   |             | 3,462    |   |   |   | — |   |
|    State      taxes and credits                 |   |             | 1,170    |   |   |   | 2,939 |   |
|                                                           |   |             | 167,906  |   |   |   | 138,377 |   |
| Less:  Valuation      allowance                      |   |             | (160,477 | ) |   |   | (97,230 | ) |
|                                                           |   |             | 7,429    |   |   |   | 41,147 |   |
|                                                           |   |             |     |   |   |   |   |   |
| Deferred tax      liabilities:                                 |   |             |     |   |   |   |   |   |
|    Revenue      recognition                     |   |             | 1,088    |   |   |   | 3,298 |   |
|    Prepaid      expenses and other              |   |             | 996      |   |   |   | 762 |   |
|    Property      and equipment                  |   |             | 540      |   |   |   | 2,792 |   |
|    Depreciation                                 |   |             | 4,805    |   |   |   | 10,998 |   |
|    Other                                        |   |             | —  |   |   |   | 558 |   |
|                                                           |   |             | 7,429    |   |   |   | 18,408 |   |
|                                                           |   |             |     |   |   |   |   |   |
| Net deferred      tax assets                                   |   | $                | —  |   |   | $ | 22,739 |   |
|                                                           |   |             |     |   |   |   |   |   |
| Classified in      consolidated balance sheets as:             |   |             |     |   |   |   |   |   |
|    Deferred      income taxes (current asset)   |   | $                | —  |   |   | $ | 11,470 |   |
|    Deferred      income taxes (long-term asset) |   |             | —  |   |   |   | 11,269 |   |
|                                                           |   | $                | —  |   |   | $ | 22,739 |   |

----

|                                                             | December      31 |   |
|------------------------------------------------------------------|------------------|--------|
|                                                             |             |   | 2008 |   |   |   | 2007 |   |
| Beginning      balance                                           |             | $      | — |   |   | $ | — |   |
|    Increase      for tax positions of prior years |             |   | 6,223 |   |   |   | — |   |
|                                                             |             | $      | 6,223 |   |   | $ | — |   |

----

----

| ·          | the      variable-rate portion of our debt is the same as the carrying amount due      to the market interest rate for these borrowings  and |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | the      fixed-rate portion of our debt is based on the fair value of our interest      rate swap contracts as well as the present value of the Other long-term      debt at a discount rate consistent with variable market rates and our      credit risk premium. |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                    |   | Year      Ended December 31 |   |
|---------------------------------------------------------|--------|-----------------------------|--------|
|                                                    |   | 2008                        |   |   | 2007 |   | 2006 |   |
| Operating      lease expense                            |   | $                           | 29,907 |   |   | $ | 29,553 |   |   | $ | 23,863 |   |
|    Less:  Sublease      income |   |                        | (1,741 | ) |   |   | (487 | ) |   |   | — |   |
|                                                    |   | $                           | 28,166 |   |   | $ | 29,066 |   |   | $ | 23,863 |   |

|       |   | OperatingLeases |   |   | SubleaseIncome |   |   | Operating      Leases, net |   |
|------------|--------|-----------------|--------|--------|----------------|--------|--------|----------------------------|--------|
| 2009       |   | $               | 26,542 |   |           | $      | (1,786 | )                          |   | $ | 24,756 |   |
| 2010       |   |            | 19,691 |   |           |   | (810   | )                          |   |   | 18,881 |   |
| 2011       |   |            | 13,064 |   |           |   | (385   | )                          |   |   | 12,679 |   |
| 2012       |   |            | 7,940  |   |           |   | (110   | )                          |   |   | 7,830 |   |
| 2013       |   |            | 4,983  |   |           |   | (113   | )                          |   |   | 4,870 |   |
| Thereafter |   |            | 3,629  |   |           |   | (9     | )                          |   |   | 3,620 |   |
|       |   | $               | 75,849 |   |           | $      | (3,213 | )                          |   | $ | 72,636 |   |

|                                                              |   | Year      Ended December 31 |    |
|-------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                              |   | 2008                        |    |   | 2007 |   |   | 2006 |   |
| Balance at      beginning of the period                           |   | $                           | 6,805   |   |   | $ | 7,081 |   |   | $ | 5,339 |   |
|    Provision      for warranties                   |   |                        | (492    | ) |   |   | 911 |   |   |   | 2,989 |   |
|    Provision      for warranties from acquisitions |   |                        | — |   |   |   | — |   |   |   | 117 |   |
|    Warranty      charges                           |   |                        | (612    | ) |   |   | (1,187 | ) |   |   | (1,364 | ) |
| Balance at end      of the period                                 |   | $                           | 5,701   |   |   | $ | 6,805 |   |   | $ | 7,081 |   |

----

| ·          | Quoted Prices      in Active Markets for Identical Assets – valuations for assets and      liabilities traded in active exchange markets, such as the New York Stock      Exchange. |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | Significant      Other Observable Inputs – valuations for assets and liabilities traded in      less active dealer or broker markets.  For example, an interest      rate swap contract is valued based on a model whose inputs are observable      forward interest rate curves.  Valuations are obtained from      third party pricing services for identical or comparable assets or      liabilities. |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | Significant      Unobservable Inputs – valuations for assets and liabilities that are      derived from other valuation methodologies, including discounted cash flow      models and similar techniques, and are not based on market exchange,      dealer, or broker traded transactions.  Valuations incorporate      certain assumptions and projections in determining fair value assigned to      such assets or liabilities. |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                              |   |                 |    |   | Fair      Value Measurements at Reporting Date Using      |   |
|-----------------------------------|--------|----------------------|---------|--------|-----------------------------------------------------------|--------|
|                              |   | December      312008 |    |   | Quoted      Prices in Active Markets for Identical Assets |   |   | Significant      Other Observable Inputs |   |   | Significant      Unobservable Inputs |   |
| Marketable      securities        |   | $                    | — |   |                                                      | $      | — |   |   | $ | — |   |   | $ | — |   |
| Interest rate      swap contracts |   |                 | (7,514  | )      |                                                      |   | — |   |   |   | (7,514 | ) |   |   | — |   |
|                              |   | $                    | (7,514  | )      |                                                      | $      | — |   |   | $ | (7,514 | ) |   | $ | — |   |

|                              |   |                 |   |   | Fair      Value Measurements at Reporting Date Using      |   |
|-----------------------------------|--------|----------------------|--------|--------|-----------------------------------------------------------|--------|
|                              |   | December      312007 |   |   | Quoted      Prices in Active Markets for Identical Assets |   |   | Significant      Other Observable Inputs |   |   | Significant      Unobservable Inputs |   |
| Marketable      securities        |   | $                    | 41,911 |   |                                                      | $      | 41,911 |   |   | $ | — |   |   | $ | — |   |
| Interest rate      swap contracts |   |                 | (8,553 | )      |                                                      |   | — |   |   |   | (8,553 | ) |   |   | — |   |
|                              |   | $                    | 33,358 |   |                                                      | $      | 41,911 |   |   | $ | (8,553 | ) |   | $ | — |   |

----

|                        |   |                 |    |   | Fair      Value Measurements Using                        |   |    |                                     |   |
|-----------------------------|--------|----------------------|---------|--------|-----------------------------------------------------------|--------|---------|------------------------------------------|--------|
|                        |   | December      312008 |    |   | Quoted      Prices in Active Markets for Identical Assets |   |    | Significant      Other Observable Inputs |   |   | Significant      Unobservable Inputs |   |   | Year      Ended December 312008Gains      (Losses) |   |
| Other      intangibles, net |   | $                    | 19,222  |   |                                                      | $      | — |                                     |   | $ | — |   |   | $ | 19,222 |   |   | $ | (30,218 | ) |
| Goodwill                    |   |                 | — |   |                                                      |   | — |                                     |   |   | — |   |   |   | — |   |   |   | (14,196 | ) |
|                        |   | $                    | 19,222  |   |                                                      | $      | — |                                     |   | $ | — |   |   | $ | 19,222 |   |   | $ | (44,414 | ) |

|                        |   |                 |   |   | Fair      Value Measurements Using                        |   |    |                                     |   |
|-----------------------------|--------|----------------------|--------|--------|-----------------------------------------------------------|--------|---------|------------------------------------------|--------|
|                        |   | December      312007 |   |   | Quoted      Prices in Active Markets for Identical Assets |   |    | Significant      Other Observable Inputs |   |   | Significant      Unobservable Inputs |   |   | Year      Ended December 312007Gains      (Losses) |   |
| Other      intangibles, net |   | $                    | 58,310 |   |                                                      | $      | — |                                     |   | $ | — |   |   | $ | 58,310 |   |   | $ | (30,007 | ) |
| Goodwill                    |   |                 | 14,196 |   |                                                      |   | — |                                     |   |   | — |   |   |   | 14,196 |   |   |   | (241,958 | ) |
|                        |   | $                    | 72,506 |   |                                                      | $      | — |                                     |   | $ | — |   |   | $ | 72,506 |   |   | $ | (271,965 | ) |

| ·          | Other      intangibles with a carrying amount of $49.4 million were written down to      their implied fair value of $19.2 million, resulting in an impairment      charge of $30.2 million in the fourth quarter of  2008. |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | Other      intangibles with a carrying amount of $88.3 million were written down to      their implied fair value of $58.3 million, resulting in an impairment      charge of $30.0 million in the fourth quarter of  2007. |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·     | Goodwill with      a carrying amount of $14.2 million was written down to its implied fair      value of zero, resulting in an impairment charge of $14.2 million in the      fourth quarter of 2008. |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | Goodwill with      a carrying amount of $256.2 million was written down to its implied fair      value of $14.2 million, resulting in an impairment charge of $242.0      million in the fourth quarter of2007. |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                          |   | First  |     |   | Second |   |     | Third  |   |   | Fourth   |   |
|-------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|--------|----------|--------|
| 2008                                                                          |   |   |     |   |   |   |     |   |   |   |     |   |
|    Sales                                                       |   | $      | 342,948  |   |   | $      | 384,620  |   |   | $      | 364,430  |   |   | $ | 232,681 |   |
|                                                                          |   |   |     |   |   |   |     |   |   |   |     |   |   |   |   |   |
|    Loss from      continuing operations(1)                     |   | $      | (33,804  | )      |   | $      | (41,326  | )      |   | $      | (35,569  | )      |   | $ | (81,757 | ) |
|    (Loss) income      from discontinued operations(1)      (2) |   |   | (57      | )      |   |   | 9,385    |   |   |   | (9,637   | )      |   |   | (22,044 | ) |
|          Net      loss           |   | $      | (33,861  | )      |   | $      | (31,941  | )      |   | $      | (45,206  | )      |   | $ | (103,801 | ) |
|                                                                          |   |   |     |   |   |   |     |   |   |   |     |   |   |   |   |   |
|    Net      (loss) income per share:                           |   |   |     |   |   |   |     |   |   |   |     |   |   |   |   |   |
|       Continuing      operations                |   |   | $(1.17   | )      |   |   | $(1.42   | )      |   |   | $(1.22   | )      |   |   | $(2.78 | ) |
|       Discontinued      operations              |   |   | —  |   |   |   | 0.32     |   |   |   | (0.33    | )      |   |   | (0.76 | ) |
|          Diluted                 |   |   | $(1.17   | )      |   |   | $(1.10   | )      |   |   | $(1.55   | )      |   |   | $(3.54 | ) |
|                                                                          |   |   |     |   |   |   |     |   |   |   |     |   |   |   |   |   |
|    Common      share prices:                                   |   |   |     |   |   |   |     |   |   |   |     |   |   |   |   |   |
| High                                                                          |   |   | $7.22    |   |   |   | $5.09    |   |   |   | $2.65    |   |   |   | $0.94 |   |
| Low                                                                           |   |   | $3.78    |   |   |   | $1.77    |   |   |   | $0.47    |   |   |   | $0.21 |   |
|                                                                          |   |   |     |   |   |   |     |   |   |   |     |   |   |   |   |   |
|    Cash      dividends declared per share                      |   |   | $— |   |   |   | $— |   |   |   | $— |   |   |   | $— |   |
|                                                                          |   |   |     |   |   |   |     |   |   |   |     |   |   |   |   |   |
| 2007                                                                          |   |   |     |   |   |   |     |   |   |   |     |   |   |   |   |   |
|    Sales                                                       |   | $      | 526,174  |   |   | $      | 656,000  |   |   | $      | 594,039  |   |   | $ | 402,860 |   |
|                                                                          |   |   |     |   |   |   |     |   |   |   |     |   |   |   |   |   |
|    (Loss) income      from continuing operations(1)            |   | $      | (6,398   | )      |   | $      | 17,884   |   |   | $      | 1,571    |   |   | $ | (278,824 | ) |
|    Income (loss)      from discontinued operations(1)(2)       |   |   | 1,432    |   |   |   | 1,533    |   |   |   | 2,597    |   |   |   | (52,508 | ) |
|      Net      (loss) income                          |   | $      | (4,966   | )      |   | $      | 19,417   |   |   | $      | 4,168    |   |   | $ | (331,332 | ) |
|                                                                          |   |   |     |   |   |   |     |   |   |   |     |   |   |   |   |   |
|    Net      (loss) income per share:                           |   |   |     |   |   |   |     |   |   |   |     |   |   |   |   |   |
|       Continuing      operations                |   |   | $(0.22   | )      |   |   | $0.61    |   |   |   | $0.05    |   |   |   | $(9.63 | ) |
|       Discontinued      operations              |   |   | 0.05     |   |   |   | 0.05     |   |   |   | 0.09     |   |   |   | (1.81 | ) |
|          Diluted                 |   |   | $(0.17   | )      |   |   | $0.66    |   |   |   | $0.14    |   |   |   | $(11.44 | ) |
|                                                                          |   |   |     |   |   |   |     |   |   |   |     |   |   |   |   |   |
|    Common      share prices:                                   |   |   |     |   |   |   |     |   |   |   |     |   |   |   |   |   |
| High                                                                          |   |   | $24.93   |   |   |   | $18.36   |   |   |   | $15.23   |   |   |   | $12.17 |   |
| Low                                                                           |   |   | $18.11   |   |   |   | $13.34   |   |   |   | $10.58   |   |   |   | $5.04 |   |
|                                                                          |   |   |     |   |   |   |     |   |   |   |     |   |   |   |   |   |
|    Cash      dividends declared per share                      |   |   | $0.10    |   |   |   | $0.10    |   |   |   | $0.10    |   |   |   | $0.10 |   |

|                                                                               |   | First  |    |   | Second |   |    | Third  |   |   | Fourth  |   |
|------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
|       2008                                           |   |   |    |   |   |   |    |   |   |   |    |   |
|          Continuing      operations   |   | $      | — |   |   | $      | 8,469   |   |   | $      | 3,856   |   |   | $ | 40,643 |   |
|          Discontinued      operations |   | $      | — |   |   | $      | 6,212   |   |   | $      | 873     |   |   | $ | 728 |   |
|       2007                                           |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
|          Continuing      operations   |   | $      | — |   |   | $      | — |   |   | $      | — |   |   | $ | 272,152 |   |
|          Discontinued      operations |   | $      | — |   |   | $      | — |   |   | $      | — |   |   | $ | 64,922 |   |

| ·     | concrete      block masonry and concrete services in Florida in June    2008, |
|--------------------------------|-------------------------------------------------------------------------------|

| ·     | framing      services in Virginia in March 2008and |
|--------------------------------|----------------------------------------------------|

| ·          | three Western      Colorado building materials distribution businesses sold in September      2007. |
|--------------------------------|-----------------------------------------------------------------------------------------------------|

----

| April 14,      2009 |   | /s/      Robert E. Mellor                                                   |   | /s/      William M. Smartt                                                  |
|---------------------|--------|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|
|                |   | Robert E.      MellorChairman      of the Board and Chief Executive Officer |   | William M.      SmarttSenior      Vice President and Chief FinancialOfficer |

----

----

----

----

----

----

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| Name                        | Age    | Position and Business      Experience                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Robert E.      Mellor       | 65     | Mr. Mellor      became Chairman of the Board of Directors in 2002 and has been Chief      Executive Officer since 1997.  He has been a director since      1991.  He was previously Of Counsel with the law firm of Gibson,      Dunn & Crutcher LLP from 1990 to 1997.  He is on the boards      of directors of Coeur d’Alene Mines Corporation and The Ryland      Group.  He is also on the board of councilors of      Save-the-Redwoods League.  He does not serve on the audit      committee of any of these boards.  He serves on      the compensation committee of the board of directors of Coeur d’Alene      Mines.                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Sara L.      Beckman        | 52     | Dr. Beckman      has served as a director since 2002.  She is a faculty member of      the Operations and Information Technology Management faculty at the Haas      School of Business at University of California - Berkeley where she has      been for over 20 years.  Her teaching and research focus on      operations strategy and innovation management.  She also worked      in several corporate positions at Hewlett-Packard Company and as a      consultant for Booz, Allen and Hamilton.  Additionally, she      consults with corporate clients on customer-focused design and      innovation.  She is a member of the Advisory Board for      non-profit Corporate Design Foundation and just joined the Advisory Board      for start-up tween Beauty.                                                                                                                                                                                                                                                                                                                                                           |
|                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| James K.      Jennings, Jr. | 67     | Mr. Jennings      has served as a director since 2003.  Since January 2005, Mr.      Jennings has served as Executive Vice President and Secretary of both      Ashbrook Simon-Hartley GP, LLC, and Ashbrook Simon-Hartley Operations GP,      LLC, the general partners of limited partnerships which own the assets of      a manufacturer of waste water treatment equipment with operations in the      U.S., U.K. and Chile.  Since October 2003, he has been Executive      Vice President, Chief Financial Officer and Director of Atreides Capital,      LLC, a private equity investment firm that specializes in the acquisition      and operation of middle market manufacturing and distribution      companies.  He previously served as Executive Vice President,      Chief Financial Officer and Director of Consolidation Partners, LLC, a      privately-held merchant banking organization.  Prior to that, he      served as Executive Vice President and Chief Financial Officer of Loomis,      Fargo & Co. and its predecessor organization, both cashintransit      service providers, from 1994 to January 2003. |
|                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Norman J.      Metcalfe     | 66     | Mr. Metcalfe has served as a director since      2005.  For      the past eight      years, he has managed his own investment      and real estate advisory business. He has served as Vice Chairman and      Chief Financial Officer of The Irvine Company, one of the nation's largest      real estate and community development companies.  Mr. Metcalfe      also serves on the boards of The Ryland Group and The Tejon Ranch      Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

----

| R. Scott      Morrison, Jr. | 69     | Mr. Morrison      has served as a director since 2004.  Since 1989, he has been      the owner and President of Morrison Properties, a real estate development      firm.  He is formerly a partner and divisional President for      Arvida Corporation, a Florida based real estate firm.  Mr.      Morrison is also a development principal in the Boca Raton Innovation      Center now known as the Florida Atlantic Research Park which was sold to      HSG Partners in March 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Peter S.      O’Neill | 72     | Mr. O’Neill      has served as a director since 1993.  In 1979, he founded      O’Neill Enterprises, LLC., a residential development and homebuilding      company.  Since 2003, he has served as chairman of PON, LLC and      related companies, a residential real estate firm.  Mr. O’Neill      serves on the Board of Trustees and as a member of the Governance      Committee for The College of Idaho.  He is a member of the Urban      Land Institute and is currently serving as a director of IDACORP and Idaho      Power Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Norman R.      Walker       | 65     | Mr. Walker      has served as a director since 2006.  Mr. Walker is a retired      partner of PricewaterhouseCoopers LLP (PwC), a position held for more than      26 years.  He most recently served as a National Risk Management      Partner, Audit and Business Advisory Services from 1992 to 2003 with PwC      and is currently the Chief Financial Officer of the Diocese of Bridgeport      in Connecticut.  Mr. Walker’s professional and business      activities also include serving as Chairman of the Ethics Division      Technical Standards Committee of the American Institute of Certified      Public Accountants, President of PricewaterhouseCoopers LLP Foundation and      Chair and President of the University of Oregon Foundation Board of      Trustees.  He is currently an Emeritus Trustee of the University      of Oregon Foundation, a member of National Championship Properties, LLC, a      wholly owned subsidiary of the University of Oregon Foundation, a member      of the Business Advisory Council of Lundquist College of Business at the      University of Oregon, and a Trustee of the Bank Street College in New      York. |

| Name                  | Age    | Position and Business      Experience                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Robert E.      Mellor | 65     | Chairman of the Board and Chief Executive      OfficerMr. Mellor      became Chairman of the Board of Directors in 2002 and has been Chief      Executive Officer since 1997.  He has been a director since      1991.  He was previously Of Counsel with the law firm of Gibson,      Dunn & Crutcher LLP from 1990 to 1997.  He is on the board      of directors of Coeur d’Alene Mines Corporation and The Ryland      Group.  He is also on the board of councilors of      Save-the-Redwoods League.  He does not serve on the audit      committee of any of these boards.  He serves on      the compensation committee of the board of directors of Coeur d’Alene      Mines. |

----

| William M.      Smartt | 66     | Senior Vice President and Chief Financial      OfficerMr. Smartt      has been a Senior Vice President and Chief Financial Officer since April      2004.  Prior to joining the Company, he was an independent      consultant from August 2001 to March 2004.  From 1992 to 2001,      he was Executive Vice President, Chief Financial and Administrative      Officer of DHL Express, a leader in international air express      services.  His previous experience as a Chief Financial Officer      included 10 years with Di Giorgio Corporation, a Fortune 500 Company,      whose product lines included the distribution of building materials,      prefabricated components and framing services. |
|------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Stanley M.      Wilson | 64     | President and Chief Operating      OfficerMr. Wilson      was appointed President and Chief Operating Officer of Building Materials      Holding Corporation in February 2008.  Mr. Wilson was appointed      President and CEO of BMC West in 2004 and was appointed Senior Vice      President in 2003.  He was appointed Vice President in 2000 and      was General Manager of the Pacific Division of BMC West from 1993 to      2003.  Mr. Wilson has been with the company since its beginning      in 1987.  His previous experience includes 19 years with the      building materials distribution business of Boise Cascade      Corporation.                                           |
|                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Eric R.      Beem      | 39     | Vice President and ControllerMr. Beem was      appointed Vice President in January 2006 and Controller in April      2005.  He joined the Company as Accounting Manager in      1996.  Mr. Beem is a Certified Public Accountant and his      experience includes 3 years with an international public accounting      firm.                                                                                                                                                                                                                                                                                                                                                                                           |
|                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Mark R.      Kailer    | 55     | Vice President, Treasurer and Investor      RelationsMr. Kailer      has been Vice President and Treasurer since 2003.  He joined the      Company in 2000 as Assistant Treasurer.  He was previously      Senior Manager of Treasury Services at Circle International Group, a      publicly-traded global logistics company based in San Francisco, from 1997      to 2000.                                                                                                                                                                                                                                                                                                                                          |
|                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Paul S.      Street    | 61     | Senior Vice President, Chief Administrative      Officer, General Counsel and Corporate SecretaryMr. Street      joined the Company in 1999 as Senior Vice President, General Counsel and      Corporate Secretary and has been Chief Administrative Officer since      2001.  He previously served as our outside General Counsel &      Secretary while a partner of the law firm of Moffatt, Thomas, Barrett,      Rock &Fields.                                                                                                                                                                                                                                                                                      |

----

| ·          | $310,313 for      2008, |
|--------------------------------|-------------------------|

| ·     | $412,083 for      2007 which included $115,296 for reimbursement of non-recurring moving      expense and |
|--------------------------------|-----------------------------------------------------------------------------------------------------------|

| ·     | $283,345 for      2006. |
|--------------------------------|-------------------------|

----

|   | · | our      compensation philosophy, |
|--------|--------|-----------------------------------|

|   | · | four named      executive officers and |
|--------|--------|----------------------------------------|

|   | · | compensation      tables of: |
|--------|--------|------------------------------|

|   | § | summary      compensation, |
|--------|--------|----------------------------|

|   | § | outstanding      equity awards at fiscal year endand |
|--------|--------|------------------------------------------------------|

|   | § | director      compensation. |
|--------|--------|-----------------------------|

|   | · | suspended increases to base      salaries except for certainexecutives, |
|--------|--------|-------------------------------------------------------------------------|

|   | · | eliminated annual and medium term      incentive compensation, |
|--------|--------|----------------------------------------------------------------|

|   | · | temporarily suspended matching      contributions for retirement and savings  plans, |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | suspended participant and matching      contributions to our executive deferred compensation plan      and |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | suspended contributions and return      for supplemental retirement plans of participants, except for the      contribution and return that may be required for the employment agreements      of certain executives. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | participants covered were reduced      to certain executives, |
|--------|--------|---------------------------------------------------------------|

|   | · | multiplier was      reduced, |
|--------|--------|------------------------------|

|   | · | elimination of annual and medium      term compensation, |
|--------|--------|----------------------------------------------------------|

|   | · | participants and executives      withdrew deferredcompensation, |
|--------|--------|-----------------------------------------------------------------|

|   | · | suspended supplemental retirement      plans and |
|--------|--------|--------------------------------------------------|

|   | · | we are experiencing low share      prices for unvested options and restricted  shares. |
|--------|--------|----------------------------------------------------------------------------------------|

----

|   | · | Robert E. Mellor – Chief Executive      Officer |
|--------|--------|-------------------------------------------------------|

|   | · | William M. Smartt – Senior Vice      President and Chief FinancialOfficer |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | Stanley M. Wilson –      President and Chief OperatingOfficer |
|--------|--------|---------------------------------------------------------------------|

|   | · | Paul S.      Street – Senior Vice President, Chief Administrative Officer, General      Counsel and CorporateSecretary |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | all awards      net of applicable taxes for members of the Board of    Directors, |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | 2 times base      salary for Chief Executive Officer, |
|--------|--------|-------------------------------------------------------|

|   | · | 1.75 times      base salary for President and Chief Operating  Officer, |
|--------|--------|-------------------------------------------------------------------------|

|   | · | 1.5 times      base salary for Senior Vice Presidentsand |
|--------|--------|----------------------------------------------------------|

|   | · | 1 times base      salary for Vice Presidents. |
|--------|--------|-----------------------------------------------|

|   | · | R. Scott      Morrison, Jr. |
|--------|--------|-----------------------------|

|   | · | Sara L.      Beckman |
|--------|--------|----------------------|

|   | · | Peter S.      O’Neill |
|--------|--------|-----------------------------|

----

|   | · | Options with      an exercise price above the current common share price have no      value.  All 2.6 million options outstanding, including those      options awarded to the executives listed below, have no value as our      common share price has been well below the lowest option exercise price of      $4.84 per common share.  The ability to exercise options is also      subject to vesting periods of 5, 4 or 3 years from the date of      grant. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Restricted      shares have a value of the current share price multiplied by the number of      restricted shares.  All 0.2 million restricted shares not      vested, including those awarded to the executives listed below, have a      minimal value as our common share price is less than $1 per common      share.  The ability to exercise restricted shares is also      subject to a vesting period of 3 years from the date of    grant. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name      and Principal Position                                                                       | Year   |   | Salary |    |   | Bonus      (1) |   |    | Stock      Awards (2)      (3) |   |   | Option      Awards (2) |   |   | Non-Equity      IncentivePlanCompensation (4) |      |   | Change      in Pension Value and Non-Qualified Deferred Compensation Earnings(5) |   |      | All      Other Compensation(6) |   |   | Total   |   |
|--------------------------------------------------------------------------------------------------------|--------|--------|--------|---------|--------|----------------|--------|---------|--------------------------------|--------|--------|------------------------|--------|--------|-----------------------------------------------|-----------|--------|----------------------------------------------------------------------------------|--------|-----------|--------------------------------|--------|--------|---------|--------|
| Active                                                                                                 |   |   |   |    |   |           |   |    |                           |   |   |                   |   |   |                                          |      |   |                                                                             |   |      |                           |   |   |    |   |
|   Robert      E. Mellor                                                                      |   |   |   |    |   |           |   |    |                           |   |   |                   |   |   |                                          |      |   |                                                                             |   |      |                           |   |   |    |   |
| Chief      Executive Officer                                                                           | 2008   |   | $      | 850,008 |   |           | $      | — |                           |   | $      | 755,083                |   |   | $                                             | 823,054   |   |                                                                             | $      | —   |                           |   | $      | — |   |   | $ | 150,891 |   |   | $ | 2,579,036 |   |
|                                                                                                   | 2007   |   | $      | 850,008 |   |           | $      | — |                           |   | $      | 919,466                |   |   | $                                             | 1,335,084 |   |                                                                             | $      | —   |                           |   | $      | 919,865 |   |   | $ | 215,499 |   |   | $ | 4,239,922 |   |
|                                                                                                   | 2006   |   | $      | 850,008 |   |           | $      | 100,000 |                           |   | $      | 747,123                |   |   | $                                             | 1,330,068 |   |                                                                             | $      | 2,159,260 |                           |   | $      | 929,899 |   |   | $ | 268,976 |   |   | $ | 6,385,334 |   |
|    William      M. Smartt                                                               |   |   |   |    |   |           |   |    |                           |   |   |                   |   |   |                                          |      |   |                                                                             |   |      |                           |   |   |    |   |   |   |   |   |   |   |   |   |
| Chief      Financial Officer                                                                           | 2008   |   | $      | 450,000 |   |           | $      | 300,000 |                           |   | $      | 81,553                 |   |   | $                                             | 126,621   |   |                                                                             | $      | —   |                           |   | $      | — |   |   | $ | 53,825 |   |   | $ | 1,011,999 |   |
|                                                                                                   | 2007   |   | $      | 390,000 |   |           | $      | 833,690 |                           |   | $      | 131,795                |   |   | $                                             | 219,675   |   |                                                                             | $      | —   |                           |   | $      | 122,623 |   |   | $ | 47,873 |   |   | $ | 1,745,656 |   |
|                                                                                                   | 2006   |   | $      | 365,000 |   |           | $      | 694,385 |                           |   | $      | 149,425                |   |   | $                                             | 224,903   |   |                                                                             | $      | 637,466   |                           |   | $      | 103,881 |   |   | $ | 46,055 |   |   | $ | 2,221,115 |   |
|    Stanley      M. Wilson                                                               |   |   |   |    |   |           |   |    |                           |   |   |                   |   |   |                                          |      |   |                                                                             |   |      |                           |   |   |    |   |   |   |   |   |   |   |   |   |
| President and      Chief Operating Officer                                                             | 2008   |   | $      | 600,000 |   |           | $      | — |                           |   | $      | 113,917                |   |   | $                                             | 12,413    |   |                                                                             | $      | —   |                           |   | $      | — |   |   | $ | 49,330 |   |   | $ | 775,660 |   |
|                                                                                                   | 2007   |   | $      | 425,002 |   |           | $      | — |                           |   | $      | 169,825                |   |   | $                                             | 264,290   |   |                                                                             | $      | 740,000   |                           |   | $      | 41,364  |   |   | $ | 71,555 |   |   | $ | 1,712,036 |   |
|                                                                                                   | 2006   |   | $      | 400,008 |   |           | $      | 100,000 |                           |   | $      | 164,605                |   |   | $                                             | 490,148   |   |                                                                             | $      | 879,520   |                           |   | $      | 142,915 |   |   | $ | 72,531 |   |   | $ | 2,249,727 |   |
|    Paul      S. Street                                                                  |   |   |   |    |   |           |   |    |                           |   |   |                   |   |   |                                          |      |   |                                                                             |   |      |                           |   |   |    |   |   |   |   |   |   |   |   |   |
| Senior Vice      President, Chief Administrative Officer, General Counsel and Corporate      Secretary | 2008   |   | $      | 450,000 |   |           | $      | — |                           |   | $      | 112,020                |   |   | $                                             | 137,216   |   |                                                                             | $      | —   |                           |   | $      | — |   |   | $ | 44,723 |   |   | $ | 743,959 |   |
|                                                                                                   | 2007   |   | $      | 390,002 |   |           | $      | — |                           |   | $      | 154,645                |   |   | $                                             | 258,208   |   |                                                                             | $      | —   |                           |   | $      | 28,052  |   |   | $ | 62,714 |   |   | $ | 893,621 |   |
|                                                                                                   | 2006   |   | $      | 369,999 |   |           | $      | 50,000  |                           |   | $      | 149,425                |   |   | $                                             | 293,016   |   |                                                                             | $      | 651,808   |                           |   | $      | 119,762 |   |   | $ | 62,479 |   |   | $ | 1,696,489 |   |
|                                                                                                   |   |   |   |    |   |           |   |    |                           |   |   |                   |   |   |                                          |      |   |                                                                             |   |      |                           |   |   |    |   |   |   |   |   |   |   |   |   |
|  Inactive                                                                                         |   |   |   |    |   |           |   |    |                           |   |   |                   |   |   |                                          |      |   |                                                                             |   |      |                           |   |   |    |   |   |   |   |   |   |   |   |   |
|    Michael      D. Mahre (7)                                                            |   |   |   |    |   |           |   |    |                           |   |   |                   |   |   |                                          |      |   |                                                                             |   |      |                           |   |   |    |   |   |   |   |   |   |   |   |   |
| Former Senior      Vice President                                                                      | 2008   |   | $      | 459,667 |   |           | $      | — |                           |   | $      | 188,370                |   |   | $                                             | 211,776   |   |                                                                             | $      | —   |                           |   | $      | — |   |   | $ | 5,160 |   |   | $ | 864,973 |   |
|                                                                                                   | 2007   |   | $      | 425,001 |   |           | $      | — |                           |   | $      | 221,293                |   |   | $                                             | 308,971   |   |                                                                             | $      | —   |                           |   | $      | 26,256  |   |   | $ | 93,749 |   |   | $ | 1,075,270 |   |
|                                                                                                   | 2006   |   | $      | 400,000 |   |           | $      | 80,000  |                           |   | $      | 164,605                |   |   | $                                             | 293,016   |   |                                                                             | $      | 1,553,076 |                           |   | $      | 126,844 |   |   | $ | 108,710 |   |   | $ | 2,726,251 |   |

----

| (1) | Represents a      guaranteed or discretionary bonus. Mr. Smartt was paid an equity-based      bonus of $300,000 in 2008, $318,690 for 2007 and $644,385 for 2006 which      was recognized for financial statement purposes as vesting requirements      were fulfilled.  This equity-based bonus is immediately paid in      cash and is based on the greaterof: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ·     | an average of      the five-day closing price immediately preceding April 1, 2006 for 30,000      of our common shares or $225,000 |
|--|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------|

|  | ·     | an average of      the five-day closing price immediately preceding April 1, 2007 for 20,000      of our common shares or $150,000 |
|--|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------|

|  | ·     | an average of      the five-day closing price immediately preceding April 1, 2008 for 10,000      of our common shares or $300,000 |
|--|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------|

|  | ·     | an average of      the five-day closing price immediately preceding April 1, 2009 for 10,000      of our common shares or $300,000 |
|--|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------|

| (2) | These amounts      do not represent cash payment and do not correspond to the actual value      that may be realized with respect to equity awards.  The amounts      shown for stock awards and option awards represent the compensation      expense of those awards recognized for financial statement reporting      purposes for stock options and restricted stock awards that vested in      fiscal 2008.  Compensation expense is recognized for financial      statement purposes as the requisite service is rendered over the vesting      period of 3 to 4 years.  Amounts are determined as      follows: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ·     | Black-Scholes      value of our common shares on the date of grant multiplied by the number      of options awarded for share options and |
|--|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

|  | ·     | fair market      value of our common shares on the date of grant multiplied by the number      of shares awarded for restricted shares. |
|--|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

|  | ·     | current share      price less exercise price multiplied by the number of options  and |
|--|--------------------------------|---------------------------------------------------------------------------------------|

|  | ·     | current share      price multiplied by the number of restrictedshares. |
|--|--------------------------------|------------------------------------------------------------------------|

| (3) | Dividends      paid on unvested restricted shareswere: |
|-----|--------------------------------------------------------|

|                   |   | 2008 |   |   | 2007   |   |   | 2006   |   |
|------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|
| Robert E.      Mellor  |   | $    | 11,700 |   |   | $      | 40,400 |   |   | $ | 35,250 |   |
| William M.      Smartt |   | $    | 1,200  |   |   | $      | 6,400  |   |   | $ | 7,050 |   |
| Stanley M.      Wilson |   | $    | 1,900  |   |   | $      | 8,200  |   |   | $ | 7,800 |   |
| Paul S.      Street    |   | $    | 1,700  |   |   | $      | 7,400  |   |   | $ | 7,050 |   |
| Michael D.      Mahre  |   | $    | 3,210  |   |   | $      | 10,820 |   |   | $ | 7,800 |   |

| (4) | Represents cash paid      for annual and medium term incentive compensation.  Payments for      annual incentive were: |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

|                   |   | 2008 |    |   | 2007   |   |    | 2006   |   |
|------------------------|--------|------|---------|--------|--------|--------|---------|--------|--------|
| Robert E.      Mellor  |   | $    | — |   |   | $      | — |   |   | $ | 1,135,260 |   |
| William M.      Smartt |   | $    | — |   |   | $      | — |   |   | $ | 389,966 |   |
| Stanley M.      Wilson |   | $    | — |   |   | $      | 740,000 |   |   | $ | 489,520 |   |
| Paul S.      Street    |   | $    | — |   |   | $      | — |   |   | $ | 395,308 |   |
| Michael D.      Mahre  |   | $    | — |   |   | $      | — |   |   | $ | 1,193,076 |   |

----

|                   |   | 2008 |    |   | 2007   |   |    | 2006   |   |
|------------------------|--------|------|---------|--------|--------|--------|---------|--------|--------|
| Robert E.      Mellor  |   | $    | — |   |   | $      | — |   |   | $ | 1,024,000 |   |
| William M.      Smartt |   | $    | — |   |   | $      | — |   |   | $ | 247,500 |   |
| Stanley M.      Wilson |   | $    | — |   |   | $      | — |   |   | $ | 390,000 |   |
| Paul S.      Street    |   | $    | — |   |   | $      | — |   |   | $ | 265,500 |   |
| Michael D.      Mahre  |   | $    | — |   |   | $      | — |   |   | $ | 360,000 |   |

| (5) | Represents      contributions to the supplemental retirement plan and earnings based on      Moody’s Bond Index.  The Compensation Committee decided to      make: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ·     | no contributions or return to      participants and no contribution or return was required for the employment      agreements of Mr. Mellor, Mr. Smartt and Mr. Wilson for      2008, |
|--|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ·     | no contribution to      participants, however a return was provided to participants as well as the      contribution and return required by employment agreements of Mr. Mellor      and Mr. Smartt for 2007and |
|--|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ·     | the contribution and return to      participants as well as the contribution and return required by the      employment agreements of Mr. Mellor and Mr. Smartt for      2006. |
|--|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | The following      elements of compensation areincluded: |
|-----|----------------------------------------------------------|

|  | ·     | personal      health and services allowance, |
|--|--------------------------------|----------------------------------------------|

|  | ·     | matching      contributions to savings and retirement plan  (401(k)), |
|--|--------------------------------|-----------------------------------------------------------------------|

|  | ·     | matching      contributions to the deferred compensationplan, |
|--|--------------------------------|---------------------------------------------------------------|

|  | ·     | life      insurance premiums, |
|--|--------------------------------|-------------------------------|

|  | ·     | travel      insurance premiums, |
|--|--------------------------------|---------------------------------|

|  | ·     | Management      Retention Units (MRUs), |
|--|--------------------------------|-----------------------------------------|

|  | ·     | reimbursement      for Medicare taxes for contributions to the supplemental retirement plan      and |
|--|--------------------------------|------------------------------------------------------------------------------------------------------|

|  | ·     | company paid      discount on employee stock purchase plan. |
|--|--------------------------------|-------------------------------------------------------------|

| (7) | Mr. Mahre      resigned as Senior Vice President on April 30, 2008 and terminated      employment on January 19, 2009.  Compensation information for      Mr. Mahre is disclosed as Mr. Mahre was one of our three most highly      compensated executive officers despite Mr. Mahre not serving as an      executive officer at the end of2008. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Options with      an exercise price above the current common share price have no      value.  All 2.6 million options outstanding, including those      options awarded to the executives listed below, have no value as our      common share price has been well below the lowest option exercise price of      $4.84 per common share.  The ability to exercise options is also      subject to vesting periods of 5, 4 or 3 years from the date of      grant. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Restricted      shares have a value of the current share price multiplied by the number of      restricted shares.  All 0.2 million restricted shares not      vested, including those awarded to the executives listed below, have a      minimal value as our common share price is less than $1 per common      share.  The ability to exercise restricted shares is also      subject to a vesting period of 3 years from the date of    grant. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Option      Awards | Stock      Awards |
|--------|--------------------|-------------------|

| Name                  |   | Grant      Date |   | Vest      Date                           |   | Number      of Securities Underlying Unexercised Options Exercisable |   | Number      of Securities Underlying Unexercised Options Unexercisable |   | Equity      Incentive Plan Awards: Number of Securities Underlying Unexercised      Unearned Options |   | Option      Exercise Price |   | Option      Expiration Date |   | Number      of Shares or Units of Stock That Have Not Vested |   | Market      Value of Shares or Units of Stock That Have Not Vestedat      Year End Share Price |   | Equity      Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights      That Have Not Vested |   | Equity      Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or      Other Rights That Have Not Vested |
|-----------------------|--------|-----------------|--------|------------------------------------------|--------|----------------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|--------|----------------------------|--------|-----------------------------|--------|--------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------|
| Active                |   |            |   |                                     |   |                                                                 |   |                                                                   |   |                                                                                                 |   |                       |   |                        |   |                                                         |   |                                                                                           |   |                                                                                                          |   |                                                                                                                          |
| Robert E.      Mellor |   |            |   |                                     |   |                                                                 |   |                                                                   |   |                                                                                                 |   |                       |   |                        |   |                                                         |   |                                                                                           |   |                                                                                                          |
|                  |   | 3/29/2007  |   | 3/29/2011                 |   | 42,750                                                          |   | 128,250                                            |   | —                                                                                              |   | $18.28                     |   | 3/29/2014              |   | —                                                      |   | —                                                                                        |   | —                                                                                                       |   | —                                                                                                                       |
|                  |   | 3/29/2007  |   | 3/29/2010                 |   | —                                                              |   | —                                                                |   | —                                                                                              |   | —                    |   | —                     |   | 57,000                                                  |   | $21,090                                                                                        |   | —                                                                                                       |   | —                                                                                                                       |
|                  |   | 1/18/2006  |   | 1/18/2009                 |   | 46,667                                                          |   | 23,333                                                       |   | —                                                                                              |   | $37.93                     |   | 1/18/2013              |   | 30,000                                                  |   | $11,100                                                                                        |   | —                                                                                                       |   | —                                                                                                                       |
|                  |   | 2/15/2005  |   | 2/15/2008                      |   | 120,000                                               |   | —                                                                |   | —                                                                                              |   | $22.77                     |   | 2/15/2012              |   | —                                                      |   | —                                                                                        |   | —                                                                                                       |   | —                                                                                                                       |
|                  |   | 5/4/2004        |   | 5/4/2007                                 |   | 120,000                                               |   | —                                                                |   | —                                                                                              |   | $8.70                      |   | 5/4/2011                    |   | —                                                      |   | —                                                                                        |   | —                                                                                                       |   | —                                                                                                                       |
|                  |   | 2/9/2004        |   | 12/31/2007      |   | 100,000                                               |   | —                                                                |   | —                                                                                              |   | $7.88                      |   | 2/9/2014                    |   | —                                                      |   | —                                                                                        |   | —                                                                                                       |   | —                                                                                                                       |
|                  |   | 4/2/2003        |   | 12/31/2006      |   | 150,000                                               |   | —                                                                |   | —                                                                                              |   | $6.97                      |   | 4/2/2013                    |   | —                                                      |   | —                                                                                        |   | —                                                                                                       |   | —                                                                                                                       |
|                  |   | 2/13/2002  |   | 12/31/2005      |   | 150,000                                               |   | —                                                                |   | —                                                                                              |   | $7.00                      |   | 2/13/2012              |   | —                                                      |   | —                                                                                        |   | —                                                                                                       |   | —                                                                                                                       |
|                  |   | 3/5/2001        |   | 12/31/2004      |   | 150,000                                               |   | —                                                                |   | —                                                                                              |   | $4.84                      |   | 3/5/2011                    |   | —                                                      |   | —                                                                                        |   | —                                                                                                       |   | —                                                                                                                       |
|                  |   | 9/7/2000        |   | 12/31/2003      |   | 100,000                                               |   | —                                                                |   | —                                                                                              |   | $4.86                      |   | 9/7/2010                    |   | —                                                      |   | —                                                                                        |   | —                                                                                                       |   | —                                                                                                                       |
|                  |   | 1/20/2000  |   | 12/31/2004      |   | 90,000                                                          |   | —                                                                |   | —                                                                                              |   | $5.00                      |   | 1/20/2010              |   | —                                                      |   | —                                                                                        |   | —                                                                                                       |   | —                                                                                                                       |
|                  |   | 4/1/1999        |   | 12/31/2003      |   | 90,000                                                          |   | —                                                                |   | —                                                                                              |   | $5.13                      |   | 4/1/2009                    |   | —                                                      |   | —                                                                                        |   | —                                                                                                       |   | —                                                                                                                       |

----

|   | Option      Awards | Stock      Awards |
|--------|--------------------|-------------------|

| Name                      |   | Grant      Date       |   | Vest      Date                           |   | Number      of Securities Underlying Unexercised Options Exercisable |   | Number      of Securities Underlying Unexercised Options Unexercisable |   | Equity      Incentive Plan Awards: Number of Securities Underlying Unexercised      Unearned Options |   | Option      Exercise Price |   | Option      Expiration Date |   | Number      of Shares or Units of Stock That Have Not Vested |   | Market      Value of Shares or Units of Stock That Have Not Vested |   | Equity      Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights      That Have Not Vested |   | Equity      Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or      Other Rights That Have Not Vested |
|---------------------------|--------|-----------------------|--------|------------------------------------------|--------|----------------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|--------|----------------------------|--------|-----------------------------|--------|--------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------|
| William M.      Smartt    |   |                  |   |                                     |   |                                                                 |   |                                                                   |   |                                                                                                 |   |                       |   |                        |   |                                                         |   |                                                               |   |                                                                                                          |
|                      |   | 3/29/2007             |   | 3/29/2011                 |   | 2,500                                                                |   | 7,500                                                                  |   | —                                                                                              |   | $18.28                     |   | 3/29/2014              |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 1/18/2006        |   | 1/18/2009                 |   | 10,667                                                          |   | 5,333                                                                  |   | —                                                                                              |   | $37.93                     |   | 1/18/2013              |   | 6,000                                                        |   | $    2,220                                     |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 2/15/2005        |   | 2/15/2008                 |   | 24,000                                                          |   | —                                                                |   | —                                                                                              |   | $22.77                     |   | 2/15/2012              |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 5/4/2004              |   | 5/4/2007                                 |   | 24,000                                                          |   | —                                                                |   | —                                                                                              |   | $8.70                      |   | 5/4/2011                    |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   |                  |   |                                     |   |                                                                 |   |                                                                   |   |                                                                                                 |   |                       |   |                        |   |                                                         |   |                                                               |   |                                                                                                          |   |                                                                                                                          |
| Stanley M.      Wilson    |   |                  |   |                                     |   |                                                                 |   |                                                                   |   |                                                                                                 |   |                       |   |                        |   |                                                         |   |                                                               |   |                                                                                                          |
|                      |   | 3/29/2007        |   | 3/29/2011                 |   | 3,750                                                                |   | 11,250                                                       |   | —                                                                                              |   | $18.28                     |   | 3/29/2014         |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 3/29/2007        |   | 3/29/2010                 |   | —                                                              |   | —                                                                |   | —                                                                                              |   | —                    |   | —                     |   | 5,000                                                        |   | $    1,850                                     |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 1/18/2006        |   | 1/18/2009                 |   | 10,667                                                     |   | 5,333                                                                  |   | —                                                                                              |   | $37.93                     |   | 1/18/2013         |   | 6,000                                                        |   | $    2,220                                     |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 2/15/2005        |   | 2/15/2008                 |   | 24,000                                                     |   | —                                                                |   | —                                                                                              |   | $22.77                     |   | 2/15/2012         |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 5/4/2004              |   | 5/4/2007                                 |   | 16,000                                                     |   | —                                                                |   | —                                                                                              |   | $8.70                      |   | 5/4/2011                    |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 2/9/2004              |   | 12/31/2007           |   | 21,562                                                     |   | —                                                                |   | —                                                                                              |   | $7.88                      |   | 2/9/2014                    |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 4/2/2003              |   | 12/31/2006           |   | 36,000                                                     |   | —                                                                |   | —                                                                                              |   | $6.97                      |   | 4/2/2013                    |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 2/13/2002        |   | 12/31/2005           |   | 10,000                                                     |   | —                                                                |   | —                                                                                              |   | $7.00                      |   | 2/13/2012         |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 3/5/2001              |   | 12/31/2004      |   | 36,000                                                     |   | —                                                                |   | —                                                                                              |   | $4.84                      |   | 3/5/2011                    |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 1/20/2000   |   | 12/31/2004      |   | 28,000                                                     |   | —                                                                |   | —                                                                                              |   | $5.00                      |   | 1/20/2010         |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   |                  |   |                                     |   |                                                                 |   |                                                                   |   |                                                                                                 |   |                       |   |                        |   |                                                         |   |                                                               |   |                                                                                                          |   |                                                                                                                          |
| Paul S.      Street       |   |                  |   |                                     |   |                                                                 |   |                                                                   |   |                                                                                                 |   |                       |   |                        |   |                                                         |   |                                                               |   |                                                                                                          |
|                      |   | 3/29/2007        |   | 3/29/2011                 |   | 3,750                                                                |   | 11,250                                                       |   | —                                                                                              |   | $18.28                     |   | 3/29/2014         |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 3/29/2007        |   | 3/29/2010                 |   | —                                                              |   | —                                                                |   | —                                                                                              |   | —                    |   | —                     |   | 5,000                                                        |   | $    1,850                                     |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 1/18/2006        |   | 1/18/2009                 |   | 10,667                                                     |   | 5,333                                                                  |   | —                                                                                              |   | $37.93                     |   | 1/18/2013         |   | 6,000                                                        |   | $    2,220                                     |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 2/15/2005        |   | 2/15/2008                 |   | 24,000                                                     |   | —                                                                |   | —                                                                                              |   | $22.77                     |   | 2/15/2012         |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 5/4/2004              |   | 5/4/2007                                 |   | 24,000                                                     |   | —                                                                |   | —                                                                                              |   | $8.70                      |   | 5/4/2011                    |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 2/9/2004              |   | 12/31/2007           |   | 28,750                                                     |   | —                                                                |   | —                                                                                              |   | $7.88                      |   | 2/9/2014                    |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 4/2/2003              |   | 12/31/2006           |   | 36,000                                                     |   | —                                                                |   | —                                                                                              |   | $6.97                      |   | 4/2/2013                    |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 2/13/2002        |   | 12/31/2005           |   | 40,000                                                     |   | —                                                                |   | —                                                                                              |   | $7.00                      |   | 2/13/2012         |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   |                  |   |                                     |   |                                                                 |   |                                                                   |   |                                                                                                 |   |                       |   |                        |   |                                                         |   |                                                               |   |                                                                                                          |   |                                                                                                                          |
|                      |   |                  |   |                                     |   |                                                                 |   |                                                                   |   |                                                                                                 |   |                       |   |                        |   |                                                         |   |                                                               |   |                                                                                                          |   |                                                                                                                          |
| Inactive                  |   |                  |   |                                     |   |                                                                 |   |                                                                   |   |                                                                                                 |   |                       |   |                        |   |                                                         |   |                                                               |   |                                                                                                          |   |                                                                                                                          |
| Michael D. Mahre (1) |   |                  |   |                                     |   |                                                                 |   |                                                                   |   |                                                                                                 |   |                       |   |                        |   |                                                         |   |                                                               |   |                                                                                                          |
|                      |   | 4/19/2007   |   | 4/19/2011                 |   | 13,575                                                     |   | 40,725                                                       |   | —                                                                                              |   | $17.39                     |   | 4/19/2014         |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 4/19/2007   |   | 4/19/2010                 |   | —                                                              |   | —                                                                |   | —                                                                                              |   | —                    |   | —                     |   | 18,100                                             |   | $    6,697                                     |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 1/18/2006   |   | 1/18/2009                 |   | 10,667                                                     |   | 5,333                                                                  |   | —                                                                                              |   | $37.93                     |   | 1/18/2013         |   | 6,000                                                        |   | $    2,220                                     |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 2/15/2005   |   | 2/15/2008                 |   | 24,000                                                     |   | —                                                                |   | —                                                                                              |   | $22.77                     |   | 2/15/2012         |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 5/4/2004              |   | 5/4/2007                                 |   | 24,000                                                     |   | —                                                                |   | —                                                                                              |   | $8.70                      |   | 5/4/2011                    |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 2/9/2004              |   | 12/31/2007      |   | 28,750                                                     |   | —                                                                |   | —                                                                                              |   | $7.88                      |   | 2/9/2014                    |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 4/2/2003              |   | 12/31/2006      |   | 36,000                                                     |   | —                                                                |   | —                                                                                              |   | $6.97                      |   | 4/2/2013                    |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 2/13/2002   |   | 12/31/2005      |   | 30,000                                                     |   | —                                                                |   | —                                                                                              |   | $7.00                      |   | 2/13/2012         |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 3/5/2001              |   | 12/31/2004      |   | 20,000                                                     |   | —                                                                |   | —                                                                                              |   | $4.84                      |   | 3/5/2011                    |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 9/7/2000              |   | 12/31/2003      |   | 10,000                                                     |   | —                                                                |   | —                                                                                              |   | $4.86                      |   | 9/7/2010                    |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |
|                      |   | 4/15/1999        |   | 12/31/2003      |   | —                                                              |   | —                                                                |   | —                                                                                              |   | $5.38                      |   | 4/15/2009         |   | —                                                      |   | —                                                            |   | —                                                                                                       |   | —                                                                                                                       |

| (1) | Mr. Mahre      resigned as Senior Vice President on April 30, 2008 and terminated      employment on January 19, 2009.  Compensation information for      Mr. Mahre is disclosed as Mr. Mahre was one of our three most highly      compensated executive officers despite Mr. Mahre not serving as an      executive officer at the end of2008. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                                              |   | Year   |   | Fees      Earned or Paid in Cash |   |   | Share      Awards |   |    | Option      Awards |   |   | Non-Equity      Incentive Plan Compensation |   |   | Change      in Pension Value and Nonqualified Deferred Compensation      Earnings |    |   | All      Other Compensation |    |    | Total  |   |
|---------------------------------------------------|--------|--------|--------|----------------------------------|--------|--------|-------------------|--------|---------|--------------------|--------|--------|---------------------------------------------|--------|--------|-----------------------------------------------------------------------------------|---------|--------|-----------------------------|---------|---------|--------|--------|
|    Sara      L. Beckman            |   | 2008   |   | $                                | 50,000 |   |              | $      | 50,000  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 215 |   |   | $ | 100,215 |   |
|                                              |   | 2007   |   | $                                | 55,000 |   |              | $      | 45,000  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 5,177 |   |   | $ | 105,177 |   |
|                                              |   | 2006   |   | $                                | 50,000 |   |              | $      | 51,840  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 6,176 |   |   | $ | 108,016 |   |
|                                              |   |   |   |                             |   |   |              |   |    |               |   |   |                                        |   |   |                                                                              |    |   |                        |    |    |   |   |   |   |   |   |   |   |   |
|    Eric S.      Belsky(1)          |   | 2008   |   | $                                | 17,445 |   |              | $      | — |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | — |   |   | $ | 17,445 |   |
|                                              |   | 2007   |   | $                                | 55,000 |   |              | $      | 45,000  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 177 |   |   | $ | 100,177 |   |
|                                              |   | 2006   |   | $                                | 50,000 |   |              | $      | 51,840  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 5,176 |   |   | $ | 107,016 |   |
|                                              |   |   |   |                             |   |   |              |   |    |               |   |   |                                        |   |   |                                                                              |    |   |                        |    |    |   |   |   |   |   |   |   |   |   |
|    James      K. Jennings, Jr.     |   | 2008   |   | $                                | 60,000 |   |              | $      | 50,000  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 6,215 |   |   | $ | 116,215 |   |
|                                              |   | 2007   |   | $                                | 65,000 |   |              | $      | 45,000  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 5,177 |   |   | $ | 115,177 |   |
|                                              |   | 2006   |   | $                                | 60,000 |   |              | $      | 51,840  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 5,176 |   |   | $ | 117,016 |   |
|                                              |   |   |   |                             |   |   |              |   |    |               |   |   |                                        |   |   |                                                                              |    |   |                        |    |    |   |   |   |   |   |   |   |   |   |
|    Norman      J. Metcalfe         |   | 2008   |   | $                                | 50,000 |   |              | $      | 50,000  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 215 |   |   | $ | 100,215 |   |
|                                              |   | 2007   |   | $                                | 55,000 |   |              | $      | 45,000  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 6,177 |   |   | $ | 106,177 |   |
|                                              |   | 2006   |   | $                                | 50,000 |   |              | $      | 51,840  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 6,176 |   |   | $ | 108,016 |   |
|                                              |   |   |   |                             |   |   |              |   |    |               |   |   |                                        |   |   |                                                                              |    |   |                        |    |    |   |   |   |   |   |   |   |   |   |
|    David M.      Moffett(2)        |   | 2008   |   | $                                | 50,000 |   |              | $      | 50,000  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 215 |   |   | $ | 100,215 |   |
|                                              |   | 2007   |   | $                                | 55,000 |   |              | $      | 45,000  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 177 |   |   | $ | 100,177 |   |
|                                              |   | 2006   |   | $                                | 25,000 |   |              | $      | 51,840  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 6,117 |   |   | $ | 82,957 |   |
|                                              |   |   |   |                             |   |   |              |   |    |               |   |   |                                        |   |   |                                                                              |    |   |                        |    |    |   |   |   |   |   |   |   |   |   |
|    R.      Scott Morrison, Jr.     |   | 2008   |   | $                                | 55,000 |   |              | $      | 50,000  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 215 |   |   | $ | 105,215 |   |
|                                              |   | 2007   |   | $                                | 60,000 |   |              | $      | 45,000  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 6,177 |   |   | $ | 111,177 |   |
|                                              |   | 2006   |   | $                                | 55,000 |   |              | $      | 51,840  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 6,176 |   |   | $ | 113,016 |   |
|                                              |   |   |   |                             |   |   |              |   |    |               |   |   |                                        |   |   |                                                                              |    |   |                        |    |    |   |   |   |   |   |   |   |   |   |
|    Peter      S. O’Neill     |   | 2008   |   | $                                | 55,000 |   |              | $      | 50,000  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 215 |   |   | $ | 105,215 |   |
|                                              |   | 2007   |   | $                                | 60,000 |   |              | $      | 45,000  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 6,177 |   |   | $ | 111,177 |   |
|                                              |   | 2006   |   | $                                | 55,000 |   |              | $      | 51,840  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 6,176 |   |   | $ | 113,016 |   |
|                                              |   |   |   |                             |   |   |              |   |    |               |   |   |                                        |   |   |                                                                              |    |   |                        |    |    |   |   |   |   |   |   |   |   |   |
|    Richard G.      Reiten (3) |   | 2008   |   | $                                | 55,000 |   |              | $      | 50,000  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 215 |   |   | $ | 105,215 |   |
|                                              |   | 2007   |   | $                                | 60,000 |   |              | $      | 45,000  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 6,177 |   |   | $ | 111,177 |   |
|                                              |   | 2006   |   | $                                | 55,000 |   |              | $      | 51,840  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 6,176 |   |   | $ | 113,016 |   |
|                                              |   |   |   |                             |   |   |              |   |    |               |   |   |                                        |   |   |                                                                              |    |   |                        |    |    |   |   |   |   |   |   |   |   |   |
|    Norman      R. Walker           |   | 2008   |   | $                                | 50,000 |   |              | $      | 50,000  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 215 |   |   | $ | 100,215 |   |
|                                              |   | 2007   |   | $                                | 55,000 |   |              | $      | 45,000  |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $  | — |   |   | $ | 6,177 |   |   | $ | 106,177 |   |
|                                              |   | 2006   |   | $                                | 12,500 |   |              | $      | — |               |   |   | —                                     |   |   | $                                                                                 | — |   |                        | $       | — |   |   | $ | 5,044 |   |   | $ | 17,544 |   |

----

| ·     | $10,000 for      Audit Committee; |
|--------------------------------|-----------------------------------|

| ·     | $5,000 for      Compensation Committee; |
|--------------------------------|-----------------------------------------|

| ·     | $5,000 for      Corporate Governance and Nominating Committee and |
|--------------------------------|-------------------------------------------------------------------|
| ·     | $5,000 for      Finance Committee.                                |

| ·     | at the      Director’s discretion: |
|--------------------------------|------------------------------------------|

|  | §  | $5,000 contribution to a charitable organization  and |
|--|--------------|-------------------------------------------------------|

|  | §  | $1,000 matching contribution to an educational    organization |
|--|--------------|----------------------------------------------------------------|

| ·     | as well as      approximately $200 of premiums for accidental death and dismemberment      insurance policy. |
|--------------------------------|--------------------------------------------------------------------------------------------------------------|

----

|                       | Beneficial      Ownership Table                                                                                                    |
|----------------------------|------------------------------------------------------------------------------------------------------------------------------------|
|                       |                                                                                                                               | Shares |   | As      a Percent of      Shares Outstanding |
| Beneficial      Owners:    |                                                                                                                               |   |   |
|                       | Schneider Capital Management      Corporation (1)                                                                                  | 2,873,930 |   | 9.7% |
|                       | 460 E.      Swedesford Rd., Ste 2000                                                                                               |   |   |   |
|                       | Wayne, PA      19087                                                                                                               |   |   |   |
|                       |                                                                                                                               |   |   |   |
|                       | Howard H. Leach (2)                                                                                                                | 1,956,700 |   | 6.6% |
|                       | Leach Capital      LLC                                                                                                             |   |   |   |
|                       | 101 California      Street, Ste 4310                                                                                               |   |   |   |
|                       | San Francisco,      CA 94111                                                                                                       |   |   |   |
|                       |                                                                                                                               |   |   |   |
|                       | Royce & Associates, LLC      (3)                                                                                               | 1,832,244 |   | 6.2% |
|                       | 1414 Avenue of      the Americas                                                                                                   |   |   |   |
|                       | New York, NY      10019                                                                                                            |   |   |   |
|                       |                                                                                                                               |   |   |   |
| Officers: (4),(5),(6) |                                                                                                                               |   |   |
|                       | Robert E.      Mellor – Chairman of the Board and Chief Executive Officer                                                    | 1,478,775 |   | 5.0% |
|                       |                                                                                                                               |   |   |   |
|                       | William M.      Smartt – Senior Vice President, Chief Financial Officer                                                      | 113,378 |   | * |
|                       |                                                                                                                               |   |   |   |
|                       | Stanley M.      Wilson – President and Chief Operating Officer                                                               | 263,627 |   | * |
|                       |                                                                                                                               |   |   |   |
|                       | Paul S. Street      – Senior Vice President, Chief Administrative Officer, General Counsel and      Corporate Secretary      | 265,363 |   |   |
| Directors:                 |                                                                                                                               |   |   |
|                       | Sara L.      Beckman                                                                                                               | 34,894 |   | * |
|                       |                                                                                                                               |   |   |   |
|                       | James K.      Jennings, Jr.                                                                                                        | 37,500 |   | * |
|                       |                                                                                                                               |   |   |   |
|                       | Norman J.      Metcalfe                                                                                                            | 17,119 |   | * |
|                       |                                                                                                                               |   |   |   |
|                       | R. Scott      Morrison, Jr.                                                                                                        | 53,512 |   | * |
|                       |                                                                                                                               |   |   |   |
|                       | Peter S.      O’Neill                                                                                                        | 34,195 |   | * |
|                       |                                                                                                                               |   |   |   |
|                       | Richard G.      Reiten                                                                                                             | 63,467 |   | * |
|                       |                                                                                                                               |   |   |   |
|                       | Norman R.      Walker                                                                                                              | 15,504 |   | * |
|                       |                                                                                                                               |   |   |   |
|                       |    All      directors and named executive officers as a group      (11 persons): | 2,377,334 |   | 8.0% |

----

| (1)    | Based on the      Schedule 13G filed by Schneider Capital Management Corporation with      the Securities and Exchange Commission on February 13,      2009.  Includes sole dispositive power over 2,873,930 shares and      sole voting power over 2,163,255 shares.                                                                                                                                                                                                                                                                 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (2)    | Based on the      Schedule 13G filed by Howard H. Leach with the Securities and Exchange      Commission on February 11, 2009.  Includes sole dispositive      power over 1,956,700 shares and sole voting power over 1,956,700      shares.                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (3)    | Based on the      Schedule 13G filed by Royce & Associates, LLC with the Securities and      Exchange Commission on January 23, 2009.  Includes sole      dispositive power over 1,832,244 shares and sole voting power over      1,832,244 shares.                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (4)    | Includes the      following shares purchased through our reitrement and savings plan and      held indirectly during 2008:  906 shares for Mr. Mellor; 0      shares for Mr. Smartt; 2,023 shares for Mr. Wilson and 261 shares for Mr.      Street.                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (5)    | Includes the      following shares that certain directors and named executive officers have      the right to acquire within 60 days after the date of this table pursuant      to outstanding options:  1,182,750 shares for Mr. Mellor; 66,500      shares for Mr. Smartt; 191,312 shares for Mr. Wilson and 172,500 shares      for Mr. Street.  All directors and executive officers as a group      have the right to acquire 1,440,562 shares within 60 days after the date      of this table pursuant to outstanding options. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (6)    | Includes the      following restricted shares:  57,000 shares for Mr. Mellor; 0      shares for Mr. Smartt; 5,000 shares for Mr. Wilson and 5,000 shares for      Mr. Street.                                                                                                                                                                                                                                                                                                                                                                   |

----

|  | ·     | $310,313 for      2008, |
|--|--------------------------------|-------------------------|

|  | ·     | $412,083 for      2007 which included $115,296 for reimbursement of non-recurring moving      expense and |
|--|--------------------------------|-----------------------------------------------------------------------------------------------------------|

|  | ·     | $283,345 for      2006. |
|--|--------------------------------|-------------------------|

| ·     | Sara L.    Beckman          |   | ·     | Peter S.      O’Neill |
|--------------------------------|-----------------------------|--------|--------------------------------|-----------------------------|
| ·     | James K. Jennings,      Jr. |   | ·     | Richard G.      Reiten      |
| ·     | Norman J.      Metcalfe     |   | ·     | Norman R.      Walker       |
| ·     | R. Scott Morrison,      Jr. |   |            |                        |

|  | ·     | As described      in the section “Certain Relationships and Related Party Transactions”      including employment of Richard G. Reiten’s son by BMC West      and |
|--|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ·     | R. Scott      Morrison, Jr.’s son was employed by BMC West in a non-executive role until      September 2008. |
|--|--------------------------------|---------------------------------------------------------------------------------------------------------------------|

----

|                              |   | 2008   |       |   | 2007   |   |       | 2006   |   |
|-----------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Audit Fees(2)                     |   |   | $2,418,000 |   |   |   | $2,211,762 |   |   |   | $3,116,153 |   |
| Audit Related Fees(3)             |   |   | 71,213     |   |   |   | 534,745    |   |   |   | 120,245 |   |
| Tax Fees(4)                       |   |   | —    |   |   |   | 65,000     |   |   |   | 260,000 |   |
| All Other Fees(5)                 |   |   | —    |   |   |   | —    |   |   |   | 104,749 |   |
|    Total      Fees |   |   | $2,489,213 |   |   |   | $2,811,507 |   |   |   | $3,601,147 |   |

| (1) | The aggregate      fees included in Audit Fees are fees billed or incurred for the fiscal      years for the audit of our annual financial statements and review of      financial statements and statutory and regulatory filings or      engagements.  The aggregate fees included in each of the other      categories are fees billed in the fiscalyears. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Fees were for      the audits of our annual consolidated financial statements, including      internal controls over financial reporting, reviews of unaudited condensed      consolidated interim financial statements and assistance with review of      public filings. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Audit Related      Fees were for assurance and other related services for the employee      benefit plans, due diligence and accounting  consultations. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Tax Fees were      for services related to tax compliance, including the preparation of tax      returns and claims for refund, tax planning and  advice. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | All Other      Fees were for professional service in connection with public      filings. |
|-----|-------------------------------------------------------------------------------------------|

----

| (a)    | The following      documents are filed as part of this Annual Report on Form      10-K: |
|--------|-----------------------------------------------------------------------------------------|
|   |                                                                                    |   |
|   | 1.                                                                                      | Financial      Statementsas filed under Item 8 – Financial Statements and      Supplementary      Data: |
|   |                                                                                    | ·   Consolidated      Statements of Operations for the years ended December 31, 2008, 2007 and      2006 |
|   |                                                                                    | ·   Consolidated      Balance Sheets as of December 31, 2008 and 2007 |
|   |                                                                                    | ·   Consolidated      Statements of Shareholders’ Equity for the years ended December 31, 2008,      2007 and 2006 |
|   |                                                                                    | ·   Consolidated      Statements of Comprehensive (Loss) Income for the years ended December 31,      2008, 2007 and 2006 |
|   |                                                                                    | ·   Consolidated      Statements of Cash Flows for the years ended December 31, 2008, 2007 and      2006 |
|   |                                                                                    | ·   Notes to      Consolidated Financial Statements |
|   |                                                                                    | ·   Management’s      Report on Internal Control Over Financial Reporting |
|   |                                                                                    | ·   Reports of      Independent Registered Public Accounting Firm |
|   |                                                                                    |   |
|   | 2.                                                                                      | Financial Statement      Schedules: |
|   |                                                                                    | ·   Schedule II -      Valuation and Qualifying Accounts for the years ended December 31,      2008, 2007 and 2006 |
|   |                                                                                    |   |
|   |                                                                                    | ·   Report of      Independent Registered Public Accounting Firm |
|   |                                                                                    |   |
|   |                                                                                    | Schedules      other than those listed are omitted because they are not applicable or the      required information is presented in the financial statements and related      disclosures. |
|   |                                                                                    |   |
|   | 3.                                                                                      | Exhibits: |
|   |                                                                                    | A list of the      exhibits required to be filed as part of this report is presented in the      Exhibit      Index. |

----

| Description                       | Balance      at Beginningof      Year |   | Additions      Charged to Costs and Expenses |   | Additions      Charged to Other      Accounts |   | Deductions(1)            |   | Balance      at End      of Year |
|-----------------------------------|---------------------------------------|--------|----------------------------------------------|--------|-----------------------------------------------|--------|--------------------------|--------|----------------------------------|
|                              |                                  |   |                                         |   |                                          |   |                     |   |                             |
| Year      Ended December 31, 2008 | $4,656                                |   | $17,104                                      |   | $—                                      |   | $(9,669)                 |   | $12,091                          |
| Year Ended      December 31, 2007 | $3,796                                |   | $2,628                                       |   |  $—                                |   | $(1,768)                 |   | $  4,656               |
| Year Ended      December 31, 2006 | $3,173                                |   | $1,051                                       |   |  $—                                |   | $   (428) |   | $  3,796               |

| (1)   | Represents      write-offs of uncollectible receivables, net of  recoveries. |
|-----------------|------------------------------------------------------------------------------|

----

----

|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Incorporated by      Reference |
|---------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|
| Exhibit             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                           |   |   |   |
| Number              |   | Exhibit      Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Form                           | File No. | Exhibit | Filing  Date |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                           |   |   |   |
| 3.50      |   | Amended      Certificate of Incorporation Filed with the Delaware Secretary of State on      September 23, 1997                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 8-K12G3                        | 000-23135 | 3.(i)      1 | September 24,      1997 |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                           |   |   |   |
| 3.50.1              |   | Certificate      of Amendment to Certificate of Incorporation of Building Materials Holding      Corporation                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 10-K                           | 000-23135 | 3.50.1 | February 27,      2006 |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                           |   |   |   |
| 3.60           |   | Amended and      Restated By-laws                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 10-Q                           | 000-23135 | 3.70 | November 14,      2001 |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                           |   |   |   |
| 10.10     |   | Second      Amended and Restated Credit Agreement Dated as of November 10, 2006 among      Building Materials Holding Corporation, BMC West Corporation and other      Subsidiary Guarantors, Wells Fargo Bank, National Association, as      Administrative Agent, Joint Lead Arranger, Joint Book Manager Swingline      Lender and L/C Issuer, JPMorgan Chase Bank, N.A., as Document Agent,      Suntrust Bank as Joint Lead Arranger and Co-Syndication Agent, BNP Paribas      as Joint Lead Arranger and Co-Syndication Agent and other Financial      Institutions Party Hereto |   | 8-K                            | 000-23135 | 10.10 | November 14,      2006 |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                           |   |   |   |
| 10.10.1   |   | First      Amendment to Second Amended and Restated Credit Agreement and Waiver Dated      as of February 29, 2008 among Building Materials Holding Corporation, BMC      West Corporation and other Subsidiary Guarantors, Wells Fargo Bank,      National Association, as Administrative Agent, Joint Lead Arranger, Joint      Book Manager Swingline Lender and L/C Issuer, JPMorgan Chase Bank, N.A.,      as Documentation Agent and the other Financial Institutions Party      Hereto                                                                                           |   | 8-K                            | 001-33192 | 10.10.1 | March 3,      2008 |

----

|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Incorporated by      Reference |
|---------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|
| Exhibit             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |   |   |   |
| Number              |   | Exhibit      Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Form                           | File No. | Exhibit | Filing  Date |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |   |   |   |
| 10.10.2   |   | Second      Amendment to Second Amended and Restated Credit Agreement and Waiver Dated      as of September 30, 2008 among Building Materials Holding Corporation, BMC      West Corporation      and other Subsidiary Guarantors, Wells Fargo Bank, National Association,      as Administrative Agent, Joint Lead Arranger, Joint Book Manager Swingline      Lender and L/C Issuer, JPMorgan Chase Bank, N.A., as Documentation Agent      and the other Financial Institutions Party Hereto |   | 8-K                            | 001-33192 | 10.10.2 | October 1,      2008 |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |   |   |   |
| 10.10.2.1           |   | Limited      Waiver Agreement to Second Amended and Restated Credit Agreement Dated as      of March 11, 2009 among Building Materials Holding Corporation and other      Subsidiary Grantors, Wells Fargo Bank, National Association, as L/C      Issuer, Swingline Lender and Administrative Agent for the      Lenders                                                                                                                                                                       |   |                           |   |   | Filed with      this Form |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |   |   |   |
| 10.10.2.2           |   | Limited      Waiver Agreement to Second Amended and Restated Credit Agreement Dated as      of April 13, 2009 among Building Materials Holding Corporation and other      Subsidiary Grantors, Wells Fargo Bank, National Association, as L/C      Issuer, Swingline Lender and Administrative Agent for the      Lenders                                                                                                                                                                       |   |                           |   |   | Filed with      this Form |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |   |   |   |
| 10.20*         |   | Amended and      Restated 1993 Employee Stock Option Plan                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 10-K                           | 000-23135 | 10.34 | March 28,      1997 |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |   |   |   |
| 10.20.1*       |   | Non-Statutory      Stock Option Agreement Pursuant to the Amended and Restated 1993 Employee      Stock Option Plan                                                                                                                                                                                                                                                                                                                                                                             |   | 10-K                           | 000-23135 | 10.21.1 | February 27,      2006 |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |
| 10.21*         |   | Building      Materials Holding Corporation 2000 Stock Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                           |   | S-8                            | 333-44260 | 4 | August 22,      2000 |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |   |   |   |
| 10.21.1*       |   | Non-Statutory      Stock Option Agreement Pursuant to the 2000 Stock Incentive      Plan                                                                                                                                                                                                                                                                                                                                                                                                        |   | 10-K                           | 000-23135 | 10.23.1 | February 27,      2006 |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |   |   |   |
| 10.22*         |   | Building      Materials Holding Corporation Amended and Restated Employee Stock Purchase      Plan                                                                                                                                                                                                                                                                                                                                                                                              |   | S-8                            | 333-15095 | 4 | May 14,      2008 |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |
| 10.23*         |   | Building      Materials Holding Corporation 2004 Amended Incentive and Performance      Plan                                                                                                                                                                                                                                                                                                                                                                                                    |   | 10-Q                           | 001-33192 | 10.25 | May 7,      2007 |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |
| 10.23.1*       |   | Stock Option      Agreement Pursuant to the 2004 Amended Incentive and Performance      Plan                                                                                                                                                                                                                                                                                                                                                                                                    |   | 10-K                           | 000-23135 | 10.25.1 | February 27,      2006 |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |   |   |   |
| 10.23.2*            |   | Restricted      Stock Agreement Pursuant to the 2004 Amended Incentive and Performance      Plan                                                                                                                                                                                                                                                                                                                                                                                                |   | 10-K                           | 001-33192 | 10.25.2 | February 21,      2007 |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |   |   |   |
| 10.24*              |   | Cash Equity      Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 10-K                           | 000-23135 | 10.26 | February 27,      2006 |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                           |   |   |   |
| 10.25     |   | Building      Materials Holding Corporation 2008 Stock Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                           |   | S-8                            | 333-15096 | 4 | May 14,      2008 |

----

|         |   |                                                                                                                                                    |   | Incorporated by      Reference |
|--------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|
| Exhibit      |   |                                                                                                                                                    |   |                           |   |   |   |
| Number       |   | Exhibit      Description                                                                                                                                |   | Form                           | File No. | Exhibit | Filing  Date |
|         |   |                                                                                                                                                    |   |                           |   |   |   |
| 10.40*  |   | Building      Materials Holding Corporation 2008 Annual Incentive Program for Certain      Employees of BMHC                                            |   | 10-Q                           | 001-33192 | 10.40 | May 12,      2008 |
|         |   |                                                                                                                                                    |   |                           |   |   |   |
| 10.41*  |   | Building      Materials Holding Corporation 2007 Annual Incentive Program BMC West      Officers and Key Staff                                          |   | 10-Q                           | 001-33192 | 10.41 | May 7,      2007 |
|         |   |                                                                                                                                                    |   |                           |   |   |   |
| 10.46*       |   | Building      Materials Holding Corporation General Terms and Conditions BMC West      Corporation Key Management 2007 Long-Term Cash Incentive    Plan |   | 10-Q                           | 001-33192 | 10.46 | July 31,      2007 |
|         |   |                                                                                                                                                    |   |                           |   |   |   |
| 10.47*       |   | Building      Materials Holding Corporation General Terms and Conditions BMHC Officers      and BMHC Key Management 2006 Long-Term Cash Incentive Plan  |   | 10-Q                           | 000-23135 | 10.45 | August 1,      2006 |
|         |   |                                                                                                                                                    |   |                           |   |   |   |
| 10.48*       |   | Building      Materials Holding Corporation General Terms and Conditions BMHC Officers      and BMHC Key Management 2005 Long-Term Cash Incentive Plan  |   | 10-K                           | 000-23135 | 10.47 | February 27,      2006 |
|         |   |                                                                                                                                                    |   |                           |   |   |   |
| 10.50*       |   | Building      Materials Holding Corporation 2005 Deferred Compensation Plan for      Directors as Amended and Restated 2007                             |   | 10-K                           | 000-33192 | 10.50 | March 11,      2008 |
|         |   |                                                                                                                                                    |   |                           |   |   |   |
| 10.51*       |   | Building      Materials Holding Corporation 1999 Deferred Compensation Plan for      Directors                                                          |   | 10-K                           | 001-33192 | 10.44 | February 21,      2007 |
|         |   |                                                                                                                                                    |   |                           |   |   |   |
| 10.52*       |   | Building      Materials Holding Corporation 2005 Deferred Compensation Plan for      Executives as Amended and Restated 2007                            |   | 10-K                           | 001-33192 | 10.52 | March 11,      2008 |
|         |   |                                                                                                                                                    |   |                           |   |   |   |
| 10.53*       |   | Building      Materials Holding Corporation 1999 Deferred Compensation Plan for      Executives                                                         |   | 10-K                           | 001-33192 | 10.46 | February 21,      2007 |
|         |   |                                                                                                                                                    |   |                           |   |   |   |
| 10.60*       |   | Building      Materials Holding Corporation 2005 Executives Supplemental Retirement      Income Plan as Amended and Restated 2007                       |   | 8-K                            | 001-33192 | 10.60 | November 21,      2007 |
|         |   |                                                                                                                                                    |   |                           |   |   |   |
| 10.61*       |   | Building      Materials Holding Corporation 2002 Executives Supplemental Retirement      Income Plan as Amended and Restated December 31, 2002          |   | 10-K                           | 000-23135 | 10.60 | February 27,      2006 |

----

|           |   |                                                                                                                                                                                                  |   | Incorporated by      Reference |
|----------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|
| Exhibit        |   |                                                                                                                                                                                                  |   |                           |   |   |   |
| Number         |   | Exhibit      Description                                                                                                                                                                              |   | Form                           | File No. | Exhibit | Filing  Date |
|           |   |                                                                                                                                                                                                  |   |                           |   |   |   |
| 10.70*    |   | Change in      Control Severance Plan for Certain Executive Officers, Senior Management      and Key Employees of the Company and its Subsidiaries as Amended and      Restated Effective May 1, 2008 |   | 10-Q                           | 000-33192 | 10.70 | May 12,      2008 |
|           |   |                                                                                                                                                                                                  |   |                           |   |   |   |
| 10.71          |   | Change in      Control Severance Plan for Non-Officer Employees of Building Materials      Holding Corporation Effective May 1, 2008                                                                  |   |                           |   |   | Filed with      this Form |
|           |   |                                                                                                                                                                                                  |   |                           |   |   |   |
| 10.80          |   | Amended Form      of Indemnity Agreement Between Building Materials Holding Corporation and      its Officers and Directors                                                                           |   | 10-K                           | 000-23135 | 10.7.1 | March 26,      2003 |
|           |   |                                                                                                                                                                                                  |   |                           |   |   |   |
| 10.90*    |   | Amended and      Restated Employment Agreement by and Between Robert E. Mellor and Building      Materials Holding Corporation as of December 26, 2007                                                |   | 10-K                           | 000-33192 | 10.90 | March 11,      2008 |
|           |   |                                                                                                                                                                                                  |   |                           |   |   |   |
| 10.91*    |   | Employment      Agreement by and Between William M. Smartt and Building Materials Holding      Corporation as of April 1, 2006                                                                        |   | 10-Q                           | 000-23135 | 10.91 | August 1,      2006 |
|           |   |                                                                                                                                                                                                  |   |                           |   |   |   |
| 10.91.1*  |   | First      Amendment to Employment Agreement by and Between William M. Smartt and      Building Materials Holding Corporation as of February 19,    2008                                              |   | 10-K                           | 001-33192 | 10.91.1 | March 11,      2008 |
|           |   |                                                                                                                                                                                                  |   |                           |   |   |   |
| 10.92*    |   | Employment      Agreement by and Between Stanley M. Wilson and Building Materials Holding      Corporation as of February 19, 2008                                                                    |   | 10-K                           | 001-33192 | 10.92 | March 11,      2008 |
|           |   |                                                                                                                                                                                                  |   |                           |   |   |   |
| 10.95*    |   | Management      Retention Unit Agreement by and Between Robert E. Mellor and Building      Materials Holding Corporation as of February 19, 2008                                                      |   | 10-Q                           | 001-33192 | 10.95 | May 12,      2008 |
|           |   |                                                                                                                                                                                                  |   |                           |   |   |   |
| 10.96*    |   | Management      Retention Unit Agreement by and Between Stanley M. Wilson and Building      Materials Holding Corporation as of February 19, 2008                                                     |   | 10-Q                           | 001-33192 | 10.96 | May 12,      2008 |
|           |   |                                                                                                                                                                                                  |   |                           |   |   |   |
| 10.97*    |   | Management      Retention Unit Agreement by and Between Paul S. Street and Building      Materials Holding Corporation as of February 19, 2008                                                        |   | 10-Q                           | 001-33192 | 10.97 | May 12,      2008 |

----

|                                                                   |   |                                                                                           |   | Incorporated by      Reference |
|------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|--------------------------------|
| Exhibit                                                                |   |                                                                                           |   |                           |   |   |   |
| Number                                                                 |   | Exhibit      Description                                                                       |   | Form                           | File No. | Exhibit | Filing  Date |
|                                                                   |   |                                                                                           |   |                           |   |   |   |
| 21.0                                                         |   | Subsidiaries      of Building Materials Holding Corporation                                    |   |                           |   |   | Filed with      this Form |
|                                                                   |   |                                                                                           |   |                           |   |   |   |
| 23.1                                                         |   | Consent of      KPMG LLP                                                                       |   |                           |   |   | Filed with      this Form |
|                                                                   |   |                                                                                           |   |                           |   |   |   |
| 31.1                                                                   |   | CEO      Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of      2002          |   |                           |   |   | Filed with      this Form |
|                                                                   |   |                                                                                           |   |                           |   |   |   |
| 31.2                                                                   |   | CFO      Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of      2002          |   |                           |   |   | Filed with      this Form |
|                                                                   |   |                                                                                           |   |                           |   |   |   |
| 32.1                                                                   |   | CEO and CFO      Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of      2002 |   |                           |   |   | Filed with      this Form |
|                                                                   |   |                                                                                           |   |                           |   |   |   |
| *  Indicates      a management contract or compensatory plan |   |                                                                                           |   |

----

SIGNATURES

|                      |   | Building      Materials Holding Corporation            |   |        |
|---------------------------|--------|--------------------------------------------------------|--------|--------|
|                      |   |                                                   |   |   |
| Date: April 14,      2009 |   | /s/ Robert E. Mellor                                   |   |   |
|                      |   | Robert E.      Mellor                                  |   |   |
|                      |   | Chairman of the Board      and Chief Executive Officer |
|                      |   | (Principal Executive      Officer)                     |

| Signature                       |   | Title                                                                                     |                |   | Date |
|---------------------------------|--------|-------------------------------------------------------------------------------------------|---------------------|--------|------|
|                            |   |                                                                                      |                |
| /s/ Robert E.      Mellor       |   | Chairman of      the Board and Chief Executive Officer (Principal Executive      Officer) | April 14,      2009 |
| Robert E.      Mellor           |   |                                                                                      |
|                            |   |                                                                                      |                |
| /s/ William      M. Smartt      |   | Senior Vice      President and Chief Financial Officer (Principal Financial      Officer) | April 14,      2009 |
| William M.      Smartt          |   |                                                                                      |
|                            |   |                                                                                      |                |
| /s/ Eric R.      Beem           |   | Vice      President and Controller(Principal      Accounting Officer)                     | April 14,      2009 |
| Eric R.      Beem               |   |                                                                                      |
|                            |   |                                                                                      |                |
| /s/ Sara L.      Beckman        |   | Director                                                                                  | April 14,      2009 |
| Sara L.      Beckman            |   |                                                                                      |                |
|                            |   |                                                                                      |                |
| /s/ James K.      Jennings, Jr. |   | Director                                                                                  | April 14,      2009 |
| James K.      Jennings, Jr.     |   |                                                                                      |                |
|                            |   |                                                                                      |                |
| /s/ Norman J.      Metcalfe     |   | Director                                                                                  | April 14,      2009 |
| Norman J.      Metcalfe         |   |                                                                                      |                |
|                            |   |                                                                                      |                |
| /s/ R. Scott      Morrison, Jr. |   | Director                                                                                  | April 14,      2009 |
| R. Scott      Morrison, Jr.     |   |                                                                                      |                |
|                            |   |                                                                                      |                |
| /s/ Peter S.      O’Neill |   | Director                                                                                  | April 14,      2009 |
| Peter S.      O’Neill     |   |                                                                                      |                |
|                            |   |                                                                                      |                |
| /s/ Norman R.      Walker       |   | Director                                                                                  | April 14,      2009 |
| Norman R.      Walker           |   |                                                                                      |                |

----

| List of Exhibits      Filed |
|-----------------------------|
|                        |   |   |
| Exhibit                     |   |   |
| Number                      | Exhibit      Description |   |
|                        |   |   |
| 21.0                        | Subsidiaries      of Building Materials Holding Corporation |
|                        |   |
| 23.1                        | Consent of      KPMG LLP |
|                        |   |
| 31.1                        | CEO      Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of      2002 |
|                        |   |
| 31.2                        | CFO      Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of      2002 |
|                        |   |
| 32.1                        | CEO and CFO      Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of      2002 |

----