NOTES TO CONSOLIDATED FINANCIAL STATEMENTS We are currently in the due diligence period for certain acquisitions and dispositions. No assurance can be made that we  will be able to complete the negotiations or become satisfied with the outcome of the due diligence. At December 31, 2004, we had long-term operating leases covering certain land, office facilities and equipment.  Rental expense totaled $2.2 million in 2004, $2.0 million in 2003 and $1.9 million in 2002. Minimum annual rental  commitments for the years ending December 31, 2005 through 2009 are $2.1 million, $1.8 million, $1.7 million, $1.2  million and $0.3 million, respectively, and $4.0 million in the aggregate thereafter. At December 31, 2004, we had employment agreements with six of our senior officers, the terms of which expire  at various times through August 20, 2005. Such agreements provide for minimum salary levels, as well as, various  incentive compensation arrangements, which are payable based on the attainment of specific goals. The agreements  also provide for severance payments plus a gross-up payment if certain situations occur, such as termination without  cause or a change of control. In the case of four of the agreements, the severance payment equals one times the  respective current salary base in the case of termination without cause and 2.99 times the respective average annual  compensation over the previous three fiscal years in the case of change of control. In the case of the other two  agreements, the severance payment generally equals 2.99 times the respective average annual compensation over the  previous three fiscal years in connection with, among other things, a termination without cause or a change of control,  and the officer would be entitled to receive continuation and vesting of certain benefits in the case of such termination. Summarized quarterly financial data for the years ended December 31, 2004 and 2003 is as follows: 17. QUARTERLY FINANCIAL DATA (UNAUDITED) Employment Agreements Lease Commitments (a) Includes an $8,368, or $0.20 basic and diluted per share, impact related to the gain on sale of discontinued operations. in thousands, except per share amounts  FIRST  SECOND  THIRD  FOURTH  TOTAL 2004: Revenues  $  108,359 $ 106,033 $ 106,870 $  109,969 $  431,231 Net income 9,388  7,654  5,807  18,492 (a) 41,341 Net income per share - basic 0.23  0.19  0.14  0.44 (a) 1.00 Net income per share - diluted 0.22  0.18  0.14  0.43 (a) 0.98 2003: Revenues $  98,393  $  100,426  $  102,284  $ 105,514  $ 406,617 Net income 8,334  5,908  5,938  9,250  29,430 Net income per share - basic 0.21  0.15  0.15  0.23  0.75 Net income per share - diluted 0.20  0.14  0.14  0.22  0.71 90 camden transforming