June 9, 2008

Ms. Susan Green26869 Fonda AveMadera, CA 93638

Dear Susan,

At your request I examined the jewelry you submitted and have provided an opinion ofthe ApproximateReplacement Value at the retail market level for insurance purposes.

This report is valid only in its entirety and the final figure includes local sales tax. You may wish to takethis into consideration when using the report. The value conclusions are subject to limiting conditions thatare set forth in the body ofthe report. To the best of my knowledge and experience, I estimate the jewelryhas an Approximate Replacement Value at the retail market level of $6,802.43.

Photographs are included with the original report for your reference. I suggest that you keep your copy ofthis report in a safe place.

This report was prepared in accordance with the Uniform Standards of Professional Appraisal Practice(USPAP).

If I can be of any further assistance, please call.

Sincerelv.

Page 1 of8

7010 N. Palm Avenue

Fresno, CA 93650

559.224.9799

877.2WARNER

559.224.4 731 fax

',,"WW.warnercompany.C0I11

Page 2 of8

Letter of TransmittalTable of ContentsPurposeIntended UseMethods of ReplacementApproach to ValueMarketLimiting ConditionsSubscriptions Retained for Value ConsultingMetal MarketsCertificationList of Laboratory InstrumentsItem DescriptionPhotograph(s)Biographical Information

This report is valid only in its entirety and for its stated purpose and intended use and was prepared in accordancewith the Uniform Standards of Professional Appraisal Practice (USPAP).

Assumptions and Limiting Conditions

PurposeThe purpose of this report is to describe and document the quality ofthe jewelry listed and to estimate it'sApproximate Replacement Value.

Intended UseThe intended use of this report is for obtaining insurance coverage on the jewelry described.

Methods of ReplacementReplacement (new): The cost necessary to replace the appraised item with new materials of like kind,quality, and similar utility, at current market prices.

Replacement with a comparable article: The cost necessary to replace with a similar piece of like kind,quality, condition, and similar utility, but not an exact duplicate.

Reproduction (new): The cost of reproducing a duplicate of the appraised item using the sameconstruction techniques, design, and materials.

Approach to ValueThere are three traditional approaches to value which are as follows:

Income approach: Applies to income producing properties and is used only if an income situation orrental property can be identified.

Market data approach: Compares the qualities of the subject item to an article with similar or identicalqualities, and researches and records current verifiable sales of such merchandise.

Cost approach: Establishes the total value of an item by considering the value of its component parts(precious metal content, gemstone weights and qualities, labor, and any other fees). To this is appliedthe appropriate retail markup according to the norms of the jewelers in the locale, supply and demand,and the current state of the marketplace. 7010 N. Palm Avenue

Fresno, CA 93650

559.224.9799

877.2WARNER

559.224.4731 fax

W\V\V. warnerCC)11l r~ln)'.COln

MarketTo value an item a market (and market level) must be recognized. The most appropriate market for jewelrycan vary depending upon the article's age, condition, quality, intrinsic content, aesthetic appeal,provenance, current fashion trends, artistic interpretation and period of manufacture among other things.

The type of retail outlet that most commonly carries the item being appraised is considered to be theappropriate market level. Because of the condition and ready availability of this jewelry, the appropriatereplacement market for the purposes of this appraisal is the retail jewelry establishment.

Unless otherwise indicated, the value(s) given do not reflect the prices for which the appraised items maybe purchased from any particular store.

Limiting ConditionsThe jewelry described within has been analyzed and graded in accordance with prescribed gradingstandards using "state of the art" methods and precision laboratory equipment.

Jewelry constructed solely of, or in combination with, precious metals (Le. platinum, palladium, yellow orwhite gold and/or silver) is tested, analyzed and described for its type and content of such metal.

Whenever possible current replacement prices are obtained from those manufacturers who trademark theirwork. When that information is unavailable, a fair and accurate replacement value of a comparable item isprovided.

Sources are assumed to be reliable.

The appraiser assumes the ownership of the subject property is true as stated by the client.

Fees paid do not include the services ofthe appraiser for any other matters. In particular, fees paid to datedo not include any of the appraiser's time or services in connection with any statement, testimony or othermatters before an insurance company, its agents, employees or any court or other body in connection withthe property herein described.

If the appraiser is requested to testifY or to make any such statements to any third party concerning thedescribed property and/or appraisal, the applicant shall pay the appraiser for all such time and services sorendered at the appraiser's then current rates.

This document is limited to its stated intended use and is invalid if all items listed in the Table of Contentsare not present.

Unless expressly stated the condition ofthe items are good for their type with serious deficiencies andrepairs noted. Ordinary wear and tear is not noted.

The information in this report is confidential.

This appraisal process does not discover liens, encumbrances, or fractional interests but, if known, they arenoted.

The limited owner of this appraisal is the party for whom the work was performed.

Possession of this report does not provide title to the items appraised.

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7010 N. Palm Avenue

fresno, CA 93650

559.224.9799

877.2WARNER

559.224.4 731 fax

www.warnercompanY.C0111

Public use of the information contained in the appraisal is invalid ifall items listed in the Table of Contentsare not present.

Each item described in this report has been photographed and file copies of the photograph(s) as well as acopy of the report are maintained in the appraiser's files for at least five years after the report date.

Third parties may rely on the information in this report for the defined purpose and intended use only.Third parties requiring further information than what is in the report must obtain the written permission ofthe owner or lawful beneficiary of the appraisal before the appraiser will discuss the report.

Periodic review of appraisal values is recommended due to economic fluctuations. The appraiser is notresponsible for advising the clients when values have changed; clients must establish their own appraisalvalue review criterion.

No changes may be made to this report by anyone other than the appraiser. The appraiser cannot be responsiblefor unauthorized alterations.

The professional relationship between the appraiser and the client ends with the delivery of this report.

This report is valid for a period not to exceed two (2) years from this date.

Subscriptions Retained for Value ConsultingDrucker, Richard - The Guide. Northbrook, ILLevine, Gail - Auction Market Monitor, Rego Park, NY

Metal MarketGoldSilverPlatinum

6/912008$900.70$17.34$2,066.00

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7010 N. Palm Avenue

fresno, CA 93650

559.224.9799

877.2WARNER

559.224.4731 fax

W\\'W.warnercomp~lny.com

bora 0 strumenBinocular microscope 0 Leveridge gauge

[g1Electronic scale 0 Thermal conductivity diamond testero GIA Gem Pearl Master Comparison Set 0 Ultraviolet light unito Fiber optic light [g1 Electronic metals testero Spectroscope 0 Proportionscopeo Polariscope 0 Dichroscopeo GIA Gem Set color grading system 0 Refractometero Chelsea color filter 0 Heavy liquidso Diamond light and graded master comparison cubic zirconia

Certification• I hereby certify that, to the best of my knowledge and belief:

• The statements of fact contained in this report are true and correct.

• The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limitingconditions, and are my unbiased professional analysis, opinions, and conclusions.

• I have no present or prospective interest in the property that is the subject of this report and I have no personalinterest or bias with respect to the parties involved.

• My compensation is not contingent upon the development or reporting of a predetermined value or directionin value that favors the cause of my client, the amount of the value estimate, the attainment of a stipulatedresult, or the occurrence of a subsequent event

• I have made a personal inspection of the property that is the subject of this report.

• No one provided significant professional assistance to the person signing this report.

• My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformitywith the Uniform Standards of Professional Appraisal Practice.

/'!

Ji'¥.',~•. ,.Vivian.~ ASG, RMV, eGADl'ec~or6/9./108

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7010 N. Palm Avenue

Fresno, CA 93650

559.224.9799

877.2WARNER

559.224.4 731 fax

www.warnercompany.com

WatchA man's wristwatch.

Watch AttributesWeight:Maker:Type:Movement:Material:Shape:Bezel:Dial:Hour markings:Hands:Strap/Bracelet:Clasp:Condition:Model number:Serial number:Comments:

75.1 gmsRolexGent's i I 7 7 :. \ \" \' \Mechanical, 19 jewels, Swiss made18K yellow goldCushionBrushedSilveredBatonsGold18K yellow goldCenter foldingVery Good, Working36346041287587Calibre 1600

The overall length of the wristwatch is 8 inches. The band is a woven mesh. The fold over clasphas 3 receiving positions and an internal clamshell safety feature. This is a discontinued model.The normal and customary market for this item is the estate/secondary market. Stated replacementvalue reflects that market.

Total Approximate Retail Value7.975% Tax

Total Approximate Retail Value Including Tax

Six thousand ?,~ht hundred two dollars and forty-three cents

J ' j

Signature of Appraise. . _" __T _.• n H. Vivian, GU, CSM, ASG, RMV, CGA

Page 6 of8

$6,300cOO$502.:43

$6i80~A3

7010 N. Palm Avenue

fresno, CA 93650

559.224.9799

877.2WARNER

559.224.4 731 fax

www.warnercompany.com

Biographical Background and QualificationsJohn H. Vivian

Education:

Business:

BA - Marketing & Management - St. Martin's College - Lacey, WAMSSM - Systems Management - University of Southern California

Retail Jewelry Sales and Management - 8 yearsIndependent Jewelry Appraising - April 1997 to November 2006AGA Certified Gemological Laboratory - April 2001AGS Certified Gemological Laboratory - May 2002

Expert Witness Testimony: Kitsap County Superior Court

Page 7 of8

Professional Qualifications:GG - Graduate Gemologist - Gemological Institute of America (GIA)CSM - Certified Senior Member - National Association of Jewelry Appraisers (NAJA)RMV - Registered Master Valuer (#191200) - Master Valuer ProgramASG - Accredited Senior Gemologist - Accredited Gemologists Association (AGA)CGA - Certified Gemologist Appraiser - American Gem Society (AGS)GIA Alumni member since 1998AGA Board of Governors -2004 - Present

Professional Courses:GIA sponsored - August 1997 - Detecting Synthetic DiamondsFebruary 1998 - Gemology Update: Synthetic and Treated GemstonesJune 1998 - Pearl GradingJune 1999 - Third International Gemological SymposiumJune 2000 - Gemology Update: Synthetics, Treated Gems & Emerald Fillings; Corundum; Moissanite;

GE POL Diamonds; Hot Colored Stone Topics; Advanced Spectroscope Techniques; Advanced DiamondGradingAugust 2006 - Gemological Research Conference; Fourth International Gemological Symposium

NAJA sponsored - August 1998 - Identification of Synthetic Gemstones; Antique and Period JewelryFebruary 1999 - Jadeite; Signature Jewelry in the Secondary Market; Appraisal Theory - Market Data

Approach; Valuation of Old European and Old Mine Cut DiamondsAugust 1999 - Gemstone Enhancements - Theory, Treatments & Identification; Jadeite; Appraisal

Theory - Cost Approach; Appraisal Theory - General Value Theory; Narrative Appraisal Report Writing;Color Grading Fancy Cut Diamonds; Color Grading Fancy Colored Diamonds; Pearl GradingFebruary 2000 - Ivory - Natural, Look-a-likes & Simulants; jadeite; Diamond Cut Grading; Repricing

Antique JewelryAugust 2000 - Antique and Period Jewelry - Circa Dating, Hallmarks & Quality Marks, Unusual

materials; Cut Grading Diamonds; Appraisal Writing; Estate Appraising; Gem Identification using theSpectroscopeFebruary 2001- Identification of: Colored Synthetic Diamonds, Color Enhanced Natural Diamonds,

Decolorized Natural Diamonds; Expert Witness Testimony PreparationAugust 2001 - Appraising for the IRSFebruary 2002 - Emerald Treatments, Freshwater Pearls, Legalities of AppraisingJuly 2002 - Watch Appraising, Emerald Treatment, Using the Spectroscope, Identifying and Appraising

Ivory, Appraisal Theory, Colored Diamonds at AuctionFebruary 2003 - Enameling, Manufacturing Techniques, Precious Metal Testing, Differences between

Georgian and Victorian Jewelry, Opal Identification and Value, Understanding Pearls: Production, eautvd V I A tt. T hn. 7010 N. Palm Avenuean a ue, uc on ec lqueS.

Fresno, CA 93650

559.224.9799

877.2WARNER

559.224.4731 fax

www,warnercompany.C0J11

August 2003 - Appraising Wristwatches; Appraisal Report Writing; Current State of the Auction Market;Appraising Montana Sapphires; Pearl Grading; Diamond Cut Grading; Identifying and Appraising SilverFebruary 2004 - Pacific Basin Jewelry; Hair Jewelry; Love Tokens; Gem Carving; Beryllium Treatment

in Corundum; Identifying and Pricing Columbian Emeralds; Designer Jewelry in the Secondary Market.August 2004 - Rolex Watches; Mogul Jewelry; Charms and Charm Bracelets; Arts and Crafts Jewelry;

Diamond Cut Analysis; Diamond Grading Theory; Analysis of Light in Diamond Cut Grading; DigitalImaging; Case Study on Jewelry Appraisal; Digital Photography of Gems and Jewelry; Lapidary; RepairDepartment ProfitabilityFebruary 2005 - Alternative Gemmology; Spectroscope; Circa Dating Jewelry; The Windsor Jewels;

Emerald Gemology and Marketing; Stone Setting Quality Features; American Indian Jewelry; EvaluatingGem Carving; Diamond TreatmentsAugust 2005 - Marketing Your Appraisal Business; Using the Web; Appraisal Software; How to Profit atthe Auction; Diamond Trade Overview; How to Succeed as an Expert Witness; Anatomy of a ProblemAppraisal; Light Performance/Cut Grading on Diamonds; Quality Solutions for the Bottom Line; Anatomyof a Cuff LinkFebruary 2006 - Use of refractometer and spectoscope; Overview of Pocket Watches; Costume JewelryCollectibles; Jewelry Manufacturing, Good, Bad and Ugly; The Shinde Jewels; Pearl Classification;Sunstone Qualities; Turquoise, Natural or Otherwise; Amber and Fakes; Evaluating and Appraising GemMinerals and CrystalsAugust 2006 - Improving Profitability in Appraising, Business Web Design, CIRCA Business Model,

eBay Profits and Pitfalls, Master Jewelers Marks, Hallmarks, The New World Order, Textile Structures inContemporary Jewelry, Ornamental Alternatives: A Timeline of Other Jewelry Materials and Techniques,European Designer Jewelry, AGS Cut Grade Analysis, GIA Cut Grade Estimation, A System to Describethe Face-up Color Appearance of White and Off-white Diamonds, IGI's Natural Color Diamond Report,Putting it all Together - The Four C's, Impact on Gemstone Valuation by Branding and Fair Trade inColored Gemstones, Visual Characteristics of Treated Gems, Appraising Jadeite Jade

Master Valuer Program Sponsored - February 1998 - Appraisal Theory; jadeite; Emerald Filling;Diamond Weight Estimation of Old European Cut and Old Mine Cut diamondsFebruary 2000 - The Appraisal Process; Profitable Appraising; The Internet in Appraising; Guatemalan

Jadeite; Fracture Healing/Filling of Mong Hsu Ruby; Identification and Valuation of Synthetic Diamondsand GE/POL Treated Diamonds; Estimating Weight and Value of Old Cut Diamonds; Synthetic Diamondsand Prototype Identification Equipment

AGS Sponsored - May 2002 - AGS Way, Advanced Personal Property Appraising (part II)June 2002 - Advanced Personal Property Appraising (part I)February 2003 - Advanced Personal Property Appraising (Part III)AGS Conclaves - 2003, 2004, 2005, 2006

AGA Sponsored - February 2002 - HTHP Diamond Treatment, Jadeite Identification, Effect ofTransparency on Diamond Pricing, Mogok Ruby Study, GIA Diamond Brilliance Study UpdateFebruary 2003 - Guatemalan Jadeite Jade: History, Identification and Value Elements; Beryllium

Diffusion of Corundum.February 2004 - Synthetic Diamond Production; Synthetic Diamond Identification; Diamond Treatments;

Bulk Diffusion Treatment of Corundum (Update)February 2005 - Diamond Cut Grading by GIA and AGS; Light Performance Analysis as an Alternative

to Cut Grading of DiamondsFebruary 2006 - Indicators of Natural Ruby, Sapphire, and Emerald; Indicators of 'Origin': Rubies,Sapphires and Emeralds; LIDS Technology in the Field of Gemology; New Laser Techniques in ClarityEnhancement; CVD Diamonds; New Diamond Grading Challenges

Center for Jewelry Studies - Antique & Period Jewelry SeminarsApril 1999; April 2000

Page 80f8

7010 N. Palm Avenue

Fresno, CA 93650

559.224.9799

877.2WARNER

559.224.4731 fax

'''\VW.warnercom pdny.C0I11