<SUBMISSION>
<ACCESSION-NUMBER>0000950123-06-008481
<TYPE>S-1/A
<PUBLIC-DOCUMENT-COUNT>22
<FILING-DATE>20060630
<DATE-OF-FILING-DATE-CHANGE>20060630
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>COMMVAULT SYSTEMS INC
<CIK>0001169561
<ASSIGNED-SIC>7372
<IRS-NUMBER>000000000
<STATE-OF-INCORPORATION>DE
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>S-1/A
<ACT>33
<FILE-NUMBER>333-132550
<FILM-NUMBER>06938601
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2 CRESCENT PLACE
<CITY>OCEANPORT
<STATE>NJ
<ZIP>07757-0900
<PHONE>7328704000
</BUSINESS-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>S-1/A
<SEQUENCE>1
<FILENAME>y17249a2sv1za.htm
<DESCRIPTION>AMENDMENT NO. 2 TO FORM S-1
<TEXT>
<HTML>
<HEAD>
<TITLE>S-1/A</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>As filed with the Securities and Exchange Commission on
June&nbsp;30, 2006</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="right" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>Registration No.&nbsp;333-132550</B>
</DIV>

<DIV align="center" style="font-size: 6.0pt;color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 3.0pt;color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 14.0pt;color: #000000; background: #ffffff; margin-top: 4pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12.0pt;color: #000000; background: #ffffff;">
<B>Washington,&nbsp;D.C. 20549</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 12.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Amendment No.&nbsp;2</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 12.0pt;color: #000000; background: #ffffff;">
<B>to</B>
</DIV>

<DIV align="center" style="font-size: 18.0pt;color: #000000; background: #ffffff;">
<B>FORM&nbsp;<FONT style="white-space: nowrap">S-1</FONT></B>
</DIV>

<DIV align="center" style="font-size: 12.0pt;color: #000000; background: #ffffff;">
<B>REGISTRATION STATEMENT</B>
</DIV>

<DIV align="center" style="font-size: 12.0pt;color: #000000; background: #ffffff;">
<B>UNDER</B>
</DIV>

<DIV align="center" style="font-size: 12.0pt;color: #000000; background: #ffffff;">
<B>THE SECURITIES ACT OF 1933</B>
</DIV>

<DIV align="center" style="font-size: 24.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>CommVault Systems, Inc.</B>
</DIV>

<DIV align="center" style="font-size: 8.0pt;color: #000000; background: #ffffff;">
<I>(Exact name of registrant as specified in its charter)</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="34%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B>Delaware</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>7372</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>22-3447504</B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <I>(State of incorporation)</I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I>(Primary Standard Industrial<BR>
     Classification Code Number)</I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I>(I.R.S. Employer<BR>
    Identification No.)</I></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>2 Crescent Place</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>Oceanport, New Jersey 07757</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(732)&nbsp;870-4000</B>
</DIV>

<DIV align="center" style="font-size: 8.0pt;color: #000000; background: #ffffff;">
<I>(Address, including zip code, and telephone number, including
area code, of registrant&#146;s principal executive offices)</I>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>N. Robert Hammer</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>Chairman, President and Chief Executive Officer</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems, Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>2 Crescent Place</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>Oceanport, New Jersey 07757</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(732)&nbsp;870-4000</B>
</DIV>

<DIV align="center" style="font-size: 8.0pt;color: #000000; background: #ffffff;">
<I>(Name, address, including zip code, and telephone number,
including area code, of agent for service)</I>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>Copies to:</I></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; ">

<TR style="font-size: 1pt;">
    <TD width="53%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="44%">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B>Philip J. Niehoff,&nbsp;Esq.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>William J. Whelan,&nbsp;III,&nbsp;Esq.</B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B>John R. Sagan,&nbsp;Esq.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>LizabethAnn R. Eisen,&nbsp;Esq.</B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B>Mayer, Brown, Rowe&nbsp;&#38; Maw LLP</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>Cravath, Swaine&nbsp;&#38; Moore LLP</B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B>71 South Wacker Drive</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>825 Eighth Avenue</B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B>Chicago, Illinois 60606</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>New York, New York 10019</B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B>(312) 782-0600</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>(212)&nbsp;474-1000</B></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Approximate date of commencement of proposed sale to the
public:</B> As soon as practicable after this Registration
Statement becomes effective.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If any of the securities being registered on this Form are to be
offered on a delayed or continuous basis pursuant to
Rule&nbsp;415 under the Securities Act of 1933, check the
following
box.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;
</FONT>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If this Form is filed to register additional securities for an
offering pursuant to Rule&nbsp;462(b) under the Securities Act,
check the following box and list the Securities Act registration
statement number of the earlier effective registration statement
for the same
offering.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;
</FONT>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If this Form is a post-effective amendment filed pursuant to
Rule&nbsp;462(c) under the Securities Act, check the following
box and list the Securities Act registration statement number of
the earlier effective registration statement for the same
offering.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;
</FONT>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If this Form is a post-effective amendment filed pursuant to
Rule&nbsp;462(d) under the Securities Act, check the following
box and list the Securities Act registration statement number of
the earlier effective registration statement for the same
offering.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;
</FONT>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>CALCULATION OF REGISTRATION FEE</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="26%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="5" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="5" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD align="center" nowrap><B>Title of Each Class of</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Proposed Maximum</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Amount of</B></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD align="center" nowrap><B>Securities to Be Registered</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Aggregate Offering Price</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Registration Fee(1)</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Common Stock, par value $0.01&nbsp;per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    $150,000,000</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    $16,050(2)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Calculated pursuant to Rule&nbsp;457(o) under the Securities Act
    of 1933.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Previously paid.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>The Registrant hereby amends this Registration Statement on
such date or dates as may be necessary to delay its effective
date until the Registrant shall file a further amendment which
specifically states that this Registration Statement shall
thereafter become effective in accordance with Section&nbsp;8(a)
of the Securities Act of 1933 or until the Registration
Statement shall become effective on such date as the Commission
acting pursuant to said section&nbsp;8(a), may determine.</B>
</DIV>

<DIV align="center" style="font-size: 3.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 4.0pt;color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<TABLE width="100%" cellpadding="5" style="border: 3pt double #000000; margin-bottom: 6pt; font-size: 10pt"><TR><TD>
<B><FONT color="#E8112D">The information in this prospectus is
not complete and may be changed. We and the selling stockholders
may not sell these securities until the registration statement
filed with the Securities and Exchange Commission is effective.
This prospectus is not an offer to sell these securities and it
is not soliciting an offer to buy these securities in any state
where the offer or sale is not permitted.
</FONT> <BR>
</B>
</TD></TR></TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 1pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<FONT color="#E8112D">SUBJECT TO COMPLETION, DATED JUNE&nbsp;30,
2006
</FONT>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 16.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<IMG src="y17249a2y1724900.gif" alt="(LOGO)">
</DIV>

<DIV align="center" style="font-size: 18.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>CommVault Systems, Inc.</B>
</DIV>

<DIV align="center" style="font-size: 16.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
Common Stock
</DIV>

<DIV align="center" style="font-size: 3.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<DIV style="width: 22%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prior to this offering, there has been no public market for our
common stock. The initial public offering price of our common
stock is expected to be between
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share. We have applied to list our common stock on The NASDAQ
National Market under the symbol &#147;CVLT.&#148;
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are
selling &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock and the selling stockholders are
selling &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock. We will not receive any of the proceeds from
the shares of common stock sold by the selling stockholders.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriters have an option to purchase a maximum
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;additional
shares from the selling stockholders to cover over-allotments of
shares.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Investing in our common stock involves risks. See &#147;Risk
Factors&#148; on page&nbsp;12.</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="41%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Underwriting</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Proceeds to</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Price to</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Discounts and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Proceeds to</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Selling</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Public</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Commissions</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>CommVault</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Stockholders</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Per Share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;$</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;$</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;$</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;$</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Delivery of the shares of common stock will be made on or
about &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these
securities or determined if this prospectus is truthful or
complete. Any representation to the contrary is a criminal
offense.
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 16.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD align="left"><B>Credit Suisse</B></TD>
    <TD align="right"><B>Goldman, Sachs&nbsp;&#38; Co.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 16.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B> <FONT style="font-size: 12.0pt">Merrill Lynch&nbsp;&#38;
Co.</FONT></B>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 16.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="19%"></TD>
    <TD width="81%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B> <FONT style="font-size: 12.0pt">Thomas Weisel Partners
    LLC</FONT></B></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 16.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="39%"></TD>
    <TD width="61%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B> <FONT style="font-size: 12.0pt">RBC Capital
    Markets</FONT></B></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 16.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="59%"></TD>
    <TD width="41%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B> <FONT style="font-size: 12.0pt">C.E. Unterberg,
    Towbin</FONT></B></TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
The date of this prospectus
is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006.
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<IMG src="y17249a2y1724901.gif" alt="(GRAPHIC)">
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<!-- TOC -->
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Page</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#101'>Prospectus
    Summary</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#102'>Risk
    Factors</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#103'>Forward-Looking
    Statements</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#104'>Use
    of Proceeds</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#105'>Dividend
    Policy</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#106'>Capitalization</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#107'>Dilution</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#108'>Selected
    Financial Data</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#109'>Management&#146;s
    Discussion and Analysis of Financial Condition and Results of
    Operations</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#110'>Business</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#111'>Management</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#112'>The
    Concurrent Private Placement</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#113'>Principal
    and Selling Stockholders</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>77</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#114'>Certain
    Relationships and Related Party Transactions</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>80</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#115'>Description
    of Capital Stock</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>82</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#116'>Shares
    Eligible for Future Sale</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>87</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#117'>Certain
    United States Federal Tax Considerations to
    Non-U.S.&nbsp;Holders</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#118'>Underwriting</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>93</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#119'>Legal
    Matters</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#120'>Experts</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#121'>Where
    You Can Find More Information</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>101</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT style="font-variant:SMALL-CAPS">&nbsp;<A HREF='#122'>Index
    to Consolidated Financial Statements and Schedule</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>F-1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w1.txt">EX-10.1: LOAN AND SECURITY AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w14.txt">EX-10.14: PURCHASE AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w15.txt">EX-10.15: PURCHASE AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w16.txt">EX-10.16: SERIES CC PURCHASE AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w17.txt">EX-10.17: SERIES CC PURCHASE AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w18.txt">EX-10.18: SOFTWARE LICENSE AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w19.txt">EX-10.19: ADDENDUM ONE TO THE LICENSE AND DISTRIBUTION AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w20.txt">EX-10.20: ADDENDUM TWO TO THE LICENSE AND DISTRIBUTION AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w21.txt">EX-10.21: ADDENDUM THREE TO THE LICENSE AND DISTRIBUTION AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w22.txt">EX-10.22: ADDENDUM FIVE TO THE LICENSE AND DISTRIBUTION AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w23.txt">EX-10.23: COMMVAULT SYSTEMS RESELLER AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w24.txt">EX-10.24: LETTER AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w25.txt">EX-10.25: STOCKHOLDERS AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w26.txt">EX-10.26: AMENDMENT TO THE STOCKHOLDERS AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w27.txt">EX-10.27: SECOND AMENDMENT TO THE STOCKHOLDERS AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w28.txt">EX-10.28: THIRD AMENDMENT TO THE STOCKHOLDERS AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w29.txt">EX-10.29: FOURTH AMENDMENT TO THE STOCKHOLDERS AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv10w30.txt">EX-10.30: FIFTH AMENDMENT TO THE STOCKHOLDERS AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y17249a2exv23w1.txt">EX-23.1: CONSENT OF ERNST & YOUNG LLP</A></FONT></TD></TR>
</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<!-- /TOC -->
</DIV>

<DIV align="center" style="font-size: 3.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<DIV style="width: 22%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>You should rely only on the information contained in this
document or to which we have referred you. We have not
authorized anyone to provide you with information that is
different. This document may only be used where it is legal to
sell these securities. The information in this document may only
be accurate on the date of this document.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Dealer Prospectus Delivery Obligation</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Until &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006 (25&nbsp;days after the commencement of this offering), all
dealers that effect transactions in these securities, whether or
not participating in this offering, may be required to deliver a
prospectus. This is in addition to the dealer&#146;s obligation
to deliver a prospectus when acting as an underwriter with
respect to unsold allotments or subscriptions.</B>
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">i

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='101'></A>
</DIV>

<!-- link1 "PROSPECTUS SUMMARY" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>PROSPECTUS SUMMARY</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>This summary highlights information contained elsewhere in
this prospectus. You should read the entire prospectus
carefully, especially the risks of investing in our common stock
discussed under &#147;Risk Factors&#148; and our financial
statements and the related notes included elsewhere in this
prospectus, before making an investment decision. Unless
otherwise indicated, the terms &#147;CommVault Systems,&#148;
&#147;CommVault,&#148; the &#147;Company,&#148; &#147;we,&#148;
&#147;us&#148; and &#147;our&#148; refer to CommVault Systems,
Inc. and its subsidiaries.</I>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Our Company</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
CommVault is a leading provider of data management software
applications and related services in terms of product breadth
and functionality and market penetration. We develop, market and
sell a unified suite of data management software applications
under the QiNetix (pronounced &#147;kinetics&#148;) brand.
QiNetix is specifically designed to protect and manage data
throughout its lifecycle in less time, at lower cost and with
fewer resources than alternative solutions. QiNetix provides our
customers with:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    high-performance data protection, including backup and recovery;</TD>
</TR>

<TR>
    <TD style="font-size: 11.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    disaster recovery of data;</TD>
</TR>

<TR>
    <TD style="font-size: 11.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    data migration and archiving;</TD>
</TR>

<TR>
    <TD style="font-size: 11.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    global availability of data;</TD>
</TR>

<TR>
    <TD style="font-size: 11.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    replication of data;</TD>
</TR>

<TR>
    <TD style="font-size: 11.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    creation and management of copies of stored data;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    storage resource discovery (the automated recognition of
    available storage resources allowing more efficient storage and
    management of data) and usage tracking (tracking the use of
    available storage resources);</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    data classification (the creation and tracking of key data
    attributes to enable intelligent, automated policy-based data
    movement and management);&nbsp;and</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    management and operational reports and troubleshooting tools.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
We also provide our customers with a broad range of highly
effective professional services that are delivered by our
worldwide support and field operations.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
QiNetix addresses the markets for backup and recovery,
replication, archival and storage management, offering our
customers
<FONT style="white-space: nowrap">high-performance</FONT> and
comprehensive solutions for data protection, business
continuance, corporate compliance and centralized management and
reporting.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
QiNetix enables our customers to simply and cost-effectively
protect and manage their enterprise data throughout its
lifecycle, from data center to remote office, covering the
leading operating systems, relational databases and
applications. In addition to addressing today&#146;s data
management challenges, our customers can realize lower capital
costs through more efficient use of their enterprise-wide
storage infrastructure assets, including the automated movement
of data from higher cost to lower cost storage devices
throughout its lifecycle and through sharing and better
utilization of storage resources across the enterprise. QiNetix
can also provide our customers with reduced operating costs
through a variety of features, including fast application
deployment, reduced training time, lower cost of storage media
consumables, proactive monitoring and analysis, simplified
troubleshooting and lower administrative costs.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
QiNetix is built upon a new innovative architecture and a single
underlying code base, which we refer to as our Common Technology
Engine. This unified architectural design is unique and
differentiates us from our competitors, some of which offer
similar applications built upon disparate software
architectures, which we refer to as point products. We believe
our architectural design provides us with significant
competitive advantages, including offering the industry&#146;s
most granular and automated management of data, tiered
classification of all data based on its user-defined value and
greater product reliability and ease of installation. In
addition, we believe we have lower support and development costs
and faster time to market for our new data management software
applications.
</DIV>
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">1

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<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
QiNetix fully interoperates with a wide variety of operating
systems, applications, network devices and protocols, storage
arrays (methods for storing information on multiple devices),
storage formats and tiered storage infrastructures (storage
environments in which data is organized and stored on a variety
of storage media based on size, age, frequency of access or
other factors), providing our customers with the flexibility to
purchase and deploy a combination of hardware and software from
different vendors. As a result, our customers can purchase and
use the optimal hardware and software for their needs, rather
than being restricted to the offerings of a single vendor.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have established a worldwide multi-channel distribution
network to sell our software and services to large global
enterprises, small and medium sized businesses and government
agencies, both directly through our sales force and indirectly
through our global network of value-added resellers, system
integrators, corporate resellers and original equipment
manufacturers. As of March&nbsp;31, 2006, we had licensed our
data management software to more than 3,700 registered customers
across a variety of industries. A representative sample of
well-known customers with a significant deployment of CommVault
software includes Ace Hardware Corporation, Centex Homes,
Clifford Chance LLP, Cozen O&#146;Connor, Halcrow Group Ltd.,
Newell Rubbermaid Inc., North Fork Bank, Ricoh Company, Ltd.,
the United Kingdom&#146;s Department of International
Development and Welch Foods Inc. Each of these customers has at
least 125 servers protected by our software.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We derive the majority of our software revenue from our data
protection software applications, which primarily include Galaxy
Backup and Recovery. Sales of our data protection software
applications represented approximately 90% of our total software
revenue for the year ended March&nbsp;31, 2006. In addition, we
derive substantially all of our services revenue from customer
and technical support associated with our data protection
software applications.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
CommVault&#146;s executive management team has led the growth of
our business, including the development and release of all our
QiNetix software since its introduction in February 2000. Under
the guidance of our management team, we have sustained technical
leadership with the introduction of eight new data management
applications and have garnered numerous industry awards and
recognition for our innovative solutions.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Our Industry</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The driving forces for the growth of the data management
software industry are the rapid growth of data and the need to
protect and manage that data.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Data is widely considered to be one of an organization&#146;s
most valued assets. The increasing reliance on critical
enterprise software applications such as
<FONT style="white-space: nowrap">e-mail,</FONT> relational
databases, enterprise resource planning, customer relationship
management and workgroup collaboration tools is resulting in the
rapid growth of data across all enterprises. New government
regulations, such as those issued under the Sarbanes-Oxley Act,
the Health Insurance Portability and Accountability
Act&nbsp;(HIPAA) and the Basel Committee on Banking Supervision
(Basel&nbsp;II), as well as company policies requiring data
preservation, are expanding the proportion of data that must be
archived and easily accessible for future use. In addition,
ensuring the security and integrity of data has become a
critical task as regulatory compliance and corporate governance
objectives affecting many organizations mandate the creation of
multiple copies of data with longer and more complex retention
requirements. We believe that worldwide disk storage systems
exceeded 1.2&nbsp;million terabytes in 2004 and will grow to
nearly 10.6&nbsp;million terabytes in 2009, representing an
estimated annual growth rate of approximately 52%.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The recent innovations in storage and networking technologies,
coupled with the rapid growth of data, have caused information
technology managers to redesign their data and storage
infrastructures to deliver greater efficiency, broaden access to
data and reduce costs. The result has been the wide adoption of
larger and more complex networked data and storage solutions,
such as storage area networks&nbsp;(SANs) (high-speed
special-purpose networks (or subnetworks) that interconnect
different kinds of data storage devices with associated data
servers) and network-attached storage&nbsp;(NAS) (an environment
in which one or more servers are dedicated exclusively to file
sharing). In addition to those trends, regulatory compliance and
corporate governance objectives are creating larger data
archives having much longer retention periods that
</DIV>
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">2

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
require information technology managers of organizations
affected by these objectives to ensure the integrity, security
and availability of data.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe that these trends are increasing the demand for
software applications that can simplify data management, provide
secure and reliable access to all data across a broad spectrum
of tiered storage and computing systems and seamlessly scale to
accommodate growth, while reducing the total cost of ownership
to the customer. We believe that the storage management software
market will grow from $5.6&nbsp;billion in 2004 to
$9.4&nbsp;billion in 2009.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Many of our competitors&#146; products were initially designed
to manage smaller quantities of data in server-attached storage
environments. As a result, we believe they are not as effective
managing data in today&#146;s larger and more complex networked
(SAN and NAS) environments. Given these limitations, we believe
our competitors&#146; products cannot be scaled as easily as
ours and are more costly to implement and manage than our
solutions.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Most data management software solutions are comprised of many
individual point products built upon separate underlying
architectures. This often requires the user to administer each
individual point product using a separate, different user
interface and unique set of dedicated storage resources, such as
disk and tape drives. The result can be a costly, difficult to
manage environment that requires extensive administrative
cross-training, offers little insight into storage resource use
across the global enterprise, provides modest operational
reporting and commands greater storage use. Given these
challenges, we believe that there is and will continue to be
significant demand for a unified, comprehensive and scalable
suite of data management software applications specifically
designed to centrally and cost-effectively manage increasingly
complex enterprise data environments.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Our Strategy</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our objective is to enhance our position as a leading supplier
of data management software and services. Our key strategic
initiatives are to continue:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Extending our Technology Leadership, Product Breadth and
    Addressable Markets.</I> We plan to continuously enhance
    existing software applications and introduce new data management
    software applications that address emerging data and storage
    management trends, incorporate advances in hardware and software
    technologies as they become available and take advantage of
    market opportunities.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Enhancing and Expanding our Customer Support and Other
    Professional Services Offerings.</I> We plan to continue
    creating and delivering innovative services offerings and
    product enhancements that result in faster deployment of our
    software, simpler system administration and rapid resolution of
    problems.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Expanding Distribution Channels and Geographic Markets
    Served.</I> We plan to continue investing in the expansion of
    our distribution channels, both geographically and across all
    enterprises.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Broadening and Developing Strategic Relationships.</I> We
    plan to broaden our existing relationships and develop new
    relationships with leading technology partners, including
    software application and infrastructure hardware vendors. We
    believe that these types of strategic relationships will allow
    us to package and distribute our data management software to our
    partners&#146; customers, increase sales of our software through
    joint-selling and marketing arrangements and increase our
    insight into future industry trends.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Company Information</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We were incorporated in the State of Delaware in 1996. Our
principal executive offices are located at 2&nbsp;Crescent
Place, Oceanport, New Jersey 07757, and our telephone number is
(732)&nbsp;<FONT style="white-space: nowrap">870-4000.</FONT>
Our website address is www.commvault.com. Information contained
on our website is not incorporated by reference into this
prospectus, and you should not consider information contained on
our website as part of this prospectus.
</DIV>
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">3

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<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;CommVault Systems,&#148; &#147;CommVault,&#148;
&#147;CommVault Galaxy,&#148; &#147;QiNetix&#148; and other
trademarks or service marks of CommVault appearing in this
prospectus are the property of CommVault. This prospectus also
contains additional trade names, trademarks and service marks of
ours and of other companies. We do not intend our use or display
of other companies&#146; trade names, trademarks or service
marks to imply a relationship with, or endorsement or
sponsorship of us by, these other companies.
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Transactions in Connection With the Offering</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We intend to effectuate a reverse stock split of our outstanding
shares of common stock at a ratio
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;share
for
each &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;share
of common stock outstanding at the time of the reverse stock
split. Except as otherwise indicated, all information in this
prospectus gives effect to the reverse stock split.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with this offering:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We entered into a new $20&nbsp;million term loan with Silicon
    Valley Bank, the terms of which are more fully described under
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations&nbsp;&#151; Liquidity and
    Capital Resources,&#148; pursuant to which we intend to borrow
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    on or immediately prior to the closing date of this offering in
    connection with the payments to the holders of our
    Series&nbsp;A, B, C, D and E preferred stock described below.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In accordance with the terms of each series of preferred stock
    as set forth in our Certificate of Incorporation, the
    outstanding shares of Series&nbsp;A, B, C, D and E preferred
    stock will be converted into a total
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock. A summary of our private placements of
    preferred stock (and, in the case of the Series&nbsp;A, B, C, D
    and E preferred stock, common stock that we issued concurrently
    therewith) is set forth below:</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="69%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Preferred</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2" align="left" nowrap><B>Date of Financing</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Stock Series</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amount</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(In millions)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    May 1996</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>30.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    July 1997</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>B</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    December 1997</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>C</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    October 1998</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>D</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    March 1999</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>E</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    April 2000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>AA</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    December 2000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>BB</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33.4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    February 2002</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>CC</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    September 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>CC</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>141.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 In addition, we issued approximately $0.7&nbsp;million of
Series&nbsp;D preferred stock to N. Robert Hammer, our Chairman,
President and Chief Executive Officer, in the form of stock in
lieu of cash compensation for his services as chief executive
officer for the period from December 1998 to December 2000.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    At the time of conversion, holders of Series&nbsp;A, B, C, D and
    E preferred stock will also receive:</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    $14.85&nbsp;per share, or $47.0&nbsp;million in the aggregate;
    and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    accumulated and unpaid dividends of $1.788&nbsp;per share per
    year since the date the shares of preferred stock were issued,
    or
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in the aggregate assuming that this offering closes
    on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    We will pay these amounts with the net proceeds of this offering
    and the concurrent private placement described below and
    borrowings under the new term loan referred to above.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The outstanding shares of Series&nbsp;AA, BB and CC preferred
    stock will be converted into a total
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock, in accordance with the terms of such series of
    preferred stock as set forth in our Certificate of Incorporation.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">4

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We will complete a private placement
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of our common stock at the public offering price to Aman
    Ventures, Mark Francis, K. Flynn McDonald, Greg Reyes, Reyes
    Family Trust, Van Wagoner Capital Partners, L.P., Van Wagoner
    Crossover Fund,&nbsp;L.P. and Marc Weiss, each an existing
    stockholder, pursuant to preemptive rights that arise as a
    result of the offering and terminate upon the closing of the
    offering. Assuming an offering price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share (the midpoint of the estimated price range shown on the
    cover page of this prospectus) we will raise
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in proceeds from the concurrent private placement. This
    prospectus shall not be deemed to be an offer to sell or a
    solicitation of an offer to buy any securities in the concurrent
    private placement.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
A $1.00 increase (decrease) in the assumed initial public
offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share would increase (decrease) the net proceeds to us from this
offering and the concurrent private placement by
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
and would decrease (increase) the amount of borrowings on the
closing date under our new term loan by
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
assuming the number of shares offered by us, as set forth on the
cover page of this prospectus, remains the same and after
deducting the estimated underwriting discounts and commissions
and estimated offering expenses payable by us.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Affiliates of Credit Suisse Securities (USA)&nbsp;LLC, an
underwriter in this offering, own
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our common
stock as
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006 (calculated without giving effect to this offering or the
conversion of any shares of preferred stock into common stock),
98.1% of our Series&nbsp;A preferred stock, 89.8% of our
Series&nbsp;B preferred stock, 100% of our Series&nbsp;C
preferred stock, 80.9% of our Series&nbsp;D preferred stock,
100% of our Series&nbsp;E preferred stock, 13.4% of our
Series&nbsp;AA preferred stock, 30.0% of our Series&nbsp;BB
preferred stock and 15.4% of our Series&nbsp;CC preferred stock.
In connection with this offering, all of the shares of preferred
stock held by affiliates of Credit Suisse Securities
(USA)&nbsp;LLC will be converted into a total
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our common stock. We will also pay to affiliates of Credit
Suisse Securities (USA)&nbsp;LLC
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
from the proceeds of this offering, the concurrent private
placement and borrowings under our new term loan
(or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the total proceeds of
such financings) in satisfaction of the amounts due upon the
conversion into common stock of their holdings of our
Series&nbsp;A, B, C, D and E preferred stock (including accrued
dividends, and assuming the offering is completed
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2006).
See &#147;Principal and Selling Stockholders&#148; and
&#147;Certain Relationships and Related Party Transactions&#148;
for a more complete description of those affiliates&#146;
ownership of our capital stock.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, certain affiliates of Credit Suisse Securities
(USA)&nbsp;LLC are selling stockholders in this offering. Those
affiliates of Credit Suisse Securities (USA)&nbsp;LLC will sell
an aggregate
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
(or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
if the underwriters exercise their over-allotment option in
full) in this offering and will receive aggregate sale proceeds
of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
or
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
if the underwriters exercise their over-allotment option in full
(in each case, based on an offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, the midpoint of the estimated price range shown on the
cover page of this prospectus), less underwriting discounts and
commissions. Upon completion of the offering and related
transactions, affiliates of Credit Suisse Securities
(USA)&nbsp;LLC will own
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our common
stock (or approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our
common stock if the underwriters exercise their over-allotment
option in full). See &#147;Principal and Selling
Stockholders.&#148;
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These affiliations present a conflict of interest because Credit
Suisse Securities (USA)&nbsp;LLC has an interest in the
successful completion of this offering beyond its interest as an
underwriter in this offering. The conflict of interest arises
due to the interests of its affiliates in this offering both as
selling stockholders and recipients of proceeds of the offering
by CommVault. This offering therefore is being made using a
&#147;qualified independent underwriter&#148; in compliance with
the applicable provisions of Rule&nbsp;2720 of the Conduct Rules
of the National Association of Securities Dealers, Inc., which
are intended to address potential conflicts of interest
involving underwriters. See &#147;Underwriting&#148; for a more
detailed description of the independent underwriting procedures
that are being used in connection with the offering.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">5

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>The Offering</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    Common stock offered to the public</TD>
    <TD></TD>
    <TD valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    by us</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    by the selling stockholders</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Total offering</TD>
    <TD></TD>
    <TD valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    (or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    if the underwriters exercise their over-allotment option in full)</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Common stock offered in the concurrent private placement</TD>
    <TD></TD>
    <TD valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Common stock to be outstanding after the offering and the
    concurrent private placement</TD>
    <TD></TD>
    <TD valign="top">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Proposed NASDAQ National Market symbol</TD>
    <TD></TD>
    <TD valign="top">
    &#147;CVLT&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Use of proceeds</TD>
    <TD></TD>
    <TD valign="top">
    We intend to use the estimated net proceeds from the sale of
    shares by us in this offering of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    (based on an offering price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share, the midpoint of the estimated price range shown on the
    cover page of this prospectus), together with the estimated
    proceeds
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$&nbsp;million
    from the concurrent private placement (based on an offering
    price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share, the midpoint of the estimated price range shown on the
    cover page of this prospectus) and estimated borrowings of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    under our new term loan, to pay
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in satisfaction of amounts due on our Series&nbsp;A, B, C, D and
    E preferred stock upon its conversion into common stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    A $1.00 increase (decrease) in the assumed initial public
    offering price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share would increase (decrease) the net proceeds to us from this
    offering and the concurrent private placement by
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    and would decrease (increase) the amount of borrowings on the
    closing date under our new term loan by
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
    assuming the number of shares offered by us, as set forth on the
    cover page of this prospectus, remains the same and after
    deducting the estimated underwriting discounts and commissions
    and estimated offering expenses payable by us.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    We will not receive any proceeds from the sale of common stock
    by the selling stockholders.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
The number of shares to be outstanding after this offering and
the concurrent private placement is based
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
outstanding as
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006, and excludes:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock available for issuance under our 1996 Stock
    Option Plan,
    including &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock issuable upon exercise of outstanding stock
    options as
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006 at a weighted average exercise price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share; and</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock initially available for issuance under our 2006
    Long-Term Stock Incentive Plan.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Except as otherwise indicated, all information in this
prospectus gives effect to the conversion of all shares of our
preferred stock into common stock immediately prior to the
closing of this offering.</I>
</DIV>
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">6

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Summary Historical and Pro Forma Financial Data</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth a summary of our historical and
pro forma financial data for the periods ended or as of the
dates indicated. You should read this table together with the
discussion under the headings &#147;Use of Proceeds,&#148;
&#147;Capitalization,&#148; &#147;Selected Financial Data&#148;
and &#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&#148; and our financial
statements and the related notes included elsewhere in this
prospectus.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We derived the summary historical financial data for each of the
three years in the period ended March&nbsp;31, 2006 from our
audited consolidated financial statements included elsewhere in
this prospectus. We derived the summary historical financial
data for each of the two years in the period ended
March&nbsp;31, 2003 from our audited consolidated financial
statements that are not included in this prospectus. The
historical results set forth below do not necessarily indicate
results expected for any future period.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table also sets forth summary unaudited pro forma
and pro forma as adjusted consolidated financial data, which
gives effect to the transactions described in the footnotes to
the table. The unaudited pro forma and pro forma as adjusted
consolidated financial data is presented for informational
purposes only and does not purport to represent what our results
of operations or financial position actually would have been had
the transactions reflected occurred on the dates indicated or to
project our financial position as of any future date or our
results of operations for any future period.
</DIV>
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">7

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
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    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>For the Year Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>(In thousands, except per share data)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Statement of Operations Data:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenues:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Software:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    QiNetix</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>17,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>29,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>39,474</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>49,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>62,422</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Vault 98</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>314</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total software</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,774</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,474</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>49,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62,422</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,677</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33,031</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47,050</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Hardware, supplies and other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,397</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,848</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>82,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>109,472</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cost of revenues:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    QiNetix software</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,497</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,764</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Vault 98 software</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,095</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,231</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Hardware, supplies and other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total cost of revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,851</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,217</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,472</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,995</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross margin</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,997</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52,029</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,477</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sales and marketing</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,842</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,592</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,248</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51,326</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Research and development</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,867</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,153</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,239</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,301</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    General and administrative</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,291</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,332</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,275</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,752</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,396</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,390</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,623</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Goodwill impairment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(30,728</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16,759</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,772</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>325</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,952</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(22</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(60</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>631</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>297</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>346</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,262</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) before income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(30,119</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16,462</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,698</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>657</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,207</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax (expense) benefit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>232</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(174</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(451</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(29,887</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16,410</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,698</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,756</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less: accretion of preferred stock dividends</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,676</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss) attributable to common stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(35,548</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(22,071</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(17,374</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(5,178</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,095</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss) attributable to common stockholders per share:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.98</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.60</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.47</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.09</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.98</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.60</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.47</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.08</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Weighted average shares used in computing per share amounts:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,224</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,201</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,678</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,224</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,201</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,866</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pro forma as adjusted net income (loss) attributable to common
    stockholders per share(1):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pro forma as adjusted weighted average shares used in computing
    per share amounts(1):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">8

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; ">

<TR style="font-size: 1pt;">
    <TD width="61%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>As of March&nbsp;31, 2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro Forma</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Actual</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Forma(2)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As Adjusted(3)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>(In thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Balance Sheet Data:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>48,039</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Working capital</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72,568</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Term loan, less current portion</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cumulative redeemable convertible preferred stock: Series&nbsp;A
    through E, at liquidation value</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>99,168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total stockholders&#146; deficit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(73,664</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 3.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Pro forma as adjusted net income (loss) attributable to common
    stockholders per share for the year ended March&nbsp;31, 2006
    gives effect to:</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The issuance on June&nbsp;15, 2006 of a total
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock upon the cashless exercise of a warrant held by
    Dell Ventures, L.P. and pursuant to preemptive rights held by
    the holders of Series&nbsp;AA, BB and CC preferred stock that
    were triggered by the exercise of the warrant;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the conversion of all outstanding shares of our preferred stock
    into a total
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock upon the closing of this offering;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the payment of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in satisfaction of the cash amount due to holders of
    Series&nbsp;A, B, C, D and E preferred stock upon its conversion
    into common stock (including accrued dividends, and assuming the
    offering is completed
    on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006) with:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the net proceeds of this offering and the concurrent private
    placement (based on an offering price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share, the midpoint of the estimated price range shown on the
    cover page of this prospectus);&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the borrowing of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    under our new term loan at an interest rate equal to 30-day
    LIBOR plus 1.50%, and assumed to
    be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% per year
    (assuming that this offering and the concurrent private
    placement are priced at
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share, the midpoint of the estimated price range shown on the
    cover page of this prospectus);</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    as if each had occurred at April 1, 2005.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
     The following table shows the adjustments to net income (loss)
    attributable to common stockholders for the periods shown to
    arrive at the corresponding pro forma as adjusted net income
    (loss) attributable to common stockholders:</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>March&nbsp;31, 2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(In thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income attributable to common stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,095</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Plus:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Elimination of accretion of preferred stock dividends</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,661</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense associated with term loan borrowings, net of
    income taxes of $</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pro forma as adjusted net income attributable to common
    stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
     A $1.00 increase (decrease) in the assumed initial public
    offering price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share would increase (decrease) the net proceeds to us from this
    offering and the concurrent private placement by
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
    would decrease (increase) the amount of borrowings on the
    closing date under our new term loan by
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
    would increase (decrease) the pro forma as adjusted net income
    (loss)</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">9

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    attributable to common stockholders by
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in the year ended March&nbsp;31, 2006 and would increase
    (decrease) the pro&nbsp;forma as adjusted net income (loss)
    attributable to common stockholders per share by
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
    the year ended March&nbsp;31, 2006, assuming the number of
    shares offered by us, as set forth on the cover page of this
    prospectus, remains the same and after deducting the estimated
    underwriting discounts and commissions and estimated offering
    expenses payable by us.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    A 0.125% increase (decrease) in assumed interest rate on
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million of borrowings
    under our new term loan would increase (decrease) interest
    expense by
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in the year ended March&nbsp;31, 2006, would decrease (increase)
    pro forma as adjusted net income (loss) attributable to common
    stockholders by
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in the year ended March&nbsp;31, 2006, and would decrease
    (increase) pro&nbsp;forma as adjusted net income (loss)
    attributable to common stockholders per share by
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
    the year ended March&nbsp;31, 2006.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    The following tables show the adjustments to the basic and
    diluted weighted average number of shares used in computing
    pro&nbsp;forma as adjusted per share amounts:</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>March&nbsp;31, 2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(In thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic weighted average number of shares used in computing per
    share amounts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Plus:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares issued upon conversion of outstanding preferred stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares issued in this offering</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares issued in the concurrent private placement</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares issued upon warrant exercise and related shares issued
    pursuant to preemptive rights</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic pro forma as adjusted weighted average number of shares
    used in computing per share amounts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>March&nbsp;31, 2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(In thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted weighted average number of shares used in computing per
    share amounts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dilutive effect of common stock warrants</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Plus:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares issued upon conversion of outstanding preferred stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares issued in this offering</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares issued in the concurrent private placement</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares issued upon warrant exercise and related shares issued
    pursuant to preemptive rights</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted pro forma as adjusted weighted average number of shares
    used in computing per share amounts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    The pro forma balance sheet data as of March&nbsp;31, 2006 gives
    effect to each of the following as if each had occurred at
    March&nbsp;31, 2006:</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The issuance on June&nbsp;15, 2006 of a total
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock upon the cashless exercise of a warrant held by
    Dell Ventures, L.P. and pursuant to preemptive rights held by
    the holders of Series&nbsp;AA, BB and CC preferred stock that
    were triggered by the exercise of the warrant;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the conversion of all outstanding shares of our preferred stock
    into a total
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock;</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">10

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the payment of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in satisfaction of the cash amount due to holders of our
    Series&nbsp;A, B, C, D and E preferred stock upon its conversion
    into common stock (including accrued dividends, and assuming the
    offering is completed
    on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006);</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the borrowing of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    under our new term loan on or immediately prior to the closing
    date of this offering in connection with the payments to the
    holders of our Series&nbsp;A, B, C, D and E preferred
    stock;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the completion of the concurrent private placement
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of our common stock at the public offering price and the
    application of the proceeds therefrom. Assuming an offering
    price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share (the midpoint of the estimated price range shown on the
    cover page of this prospectus) we will raise
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in proceeds from the concurrent private placement.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
     A $1.00 increase (decrease) in the assumed initial public
    offering price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share would increase (decrease) the net proceeds to us from this
    offering and the concurrent private placement by
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    and would decrease (increase) the amount of borrowings on the
    closing date under our new term loan by
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
    assuming the number of shares offered by us, as set forth on the
    cover page of this prospectus, remains the same and after
    deducting the estimated underwriting discounts and commissions
    and estimated offering expenses payable by us.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    The pro forma as adjusted balance sheet data as of
    March&nbsp;31, 2006 reflects the issuance
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock in this offering at an assumed initial offering
    price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share (the midpoint of the estimated price range shown on the
    cover page of this prospectus), and our receipt of the net
    proceeds from this offering, after deducting the underwriting
    discounts and commissions and estimated offering expenses
    payable by us, as if these events had occurred at March&nbsp;31,
    2006.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">11

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='102'></A>
</DIV>

<!-- link1 "RISK FACTORS" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>RISK FACTORS</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>This offering involves a high degree of risk. You should
carefully consider the following risk factors in addition to the
other information contained in this prospectus before purchasing
our common stock.</I>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Risks Related to Our Business</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>We have only recently become profitable and we may be
unable to sustain future profitability.</I></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have only recently become profitable, generating net income
of approximately $0.5&nbsp;million for fiscal 2005 and net
income of approximately $10.8&nbsp;million for fiscal 2006. As
of March&nbsp;31, 2006, we had an accumulated deficit of
approximately $165.1&nbsp;million. We may be unable to sustain
or increase profitability on a quarterly or annual basis in the
future. We intend to continue to expend significant funds in
developing our software and service offerings and for general
corporate purposes, including marketing, services and sales
operations, hiring additional personnel, upgrading our
infrastructure and expanding into new geographical markets. We
expect that associated expenses will precede any revenues
generated by the increased spending. If we experience a downturn
in business, we may incur losses and negative cash flows from
operations, which could materially adversely affect our results
of operations and capitalization.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>Our industry is intensely competitive, and most of our
competitors have greater financial, technical and sales and
marketing resources and larger installed customer bases than we
do, which could enable them to compete more effectively than we
do.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The data management software market is intensely competitive,
highly fragmented and characterized by rapidly changing
technology and evolving standards. Competitors vary in size and
in the scope and breadth of the products and services offered.
Our primary competitors include CA, Inc. (formerly known as
Computer Associates International, Inc.), EMC Corporation,
Hewlett-Packard Company, International Business Machines
Corporation (IBM) and Symantec Corporation.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The principal competitive factors in our industry include
product functionality, product integration, platform coverage,
ability to scale, price, worldwide sales infrastructure, global
technical support, name recognition and reputation. The ability
of major system vendors to bundle hardware and software
solutions is also a significant competitive factor in our
industry.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Many of our current and potential competitors have longer
operating histories and have substantially greater financial,
technical, sales, marketing and other resources than we do, as
well as larger installed customer bases, greater name
recognition and broader product offerings, including hardware.
These competitors can devote greater resources to the
development, promotion, sale and support of their products than
we can and have the ability to bundle their hardware and
software products in a combined offering. As a result, these
competitors may be able to respond more quickly to new or
emerging technologies and changes in customer requirements.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
It is also costly and time-consuming to change data management
systems. Most of our new customers have installed data
management software, which gives an incumbent competitor an
advantage in retaining a customer because it already understands
the network infrastructure, user demands and information
technology needs of the customer, and also because some
customers are reluctant to change vendors.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our current and potential competitors may establish cooperative
relationships among themselves or with third parties. If so, new
competitors or alliances that include our competitors may emerge
that could acquire significant market share. In addition, large
operating system and application vendors, such as Microsoft
Corporation, have introduced products or functionality that
include some of the same functions offered by our software
applications. In the future, further development by these
vendors could cause our software applications and services to
become redundant, which could seriously harm our sales, results
of operations and financial condition.
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">12

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
New competitors entering our markets can have a negative impact
on our competitive positioning. In addition, we expect to
encounter new competitors as we enter new markets. Furthermore,
many of our existing competitors are broadening their operating
systems platform coverage. We also expect increased competition
from original equipment manufacturers, including those we
partner with, and from systems and network management companies,
especially those that have historically focused on the mainframe
computer market and have been making acquisitions and broadening
their efforts to include data management and storage products.
We expect that competition will increase as a result of future
software industry consolidation. Increased competition could
harm our business by causing, among other things, price
reductions of our products, reduced profitability and loss of
market share.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>We may experience a decline in revenues or volatility in
our operating results, which may adversely affect the market
price of our common stock.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We cannot predict our future revenues or operating results with
certainty because of many factors outside of our control. A
significant revenue or profit decline, lowered forecasts or
volatility in our operating results could cause the market price
of our common stock to decline substantially. Factors that could
affect our revenues and operating results include the following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the unpredictability of the timing and magnitude of orders for
    our software applications&nbsp;&#151; during fiscal 2005 and
    2006, a majority of our quarterly revenues was earned and
    recorded near the end of each quarter;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the possibility that our customers may cancel, defer or limit
    purchases as a result of reduced information technology budgets;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the possibility that our customers may defer purchases of our
    software applications in anticipation of new software
    applications or updates from us or our competitors;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the ability of our original equipment manufacturers and
    resellers to meet their sales objectives;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    market acceptance of our new applications and enhancements;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to control expenses;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    changes in our pricing and distribution terms or those of our
    competitors;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the demands on our management, sales force and services
    infrastructure as a result of the introduction of new software
    applications or updates;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the possibility that our business will be adversely affected as
    a result of the threat of terrorism or military actions taken by
    the United States or its allies.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our expense levels are relatively fixed and are based, in part,
on our expectations of our future revenues. If revenue levels
fall below our expectations and we are profitable at the time,
our net income would decrease because only a small portion of
our expenses varies with our revenues. If we are not profitable
at the time, our net loss would increase. Therefore, any
significant decline in revenues for any period could have an
immediate adverse impact on our results of operations for that
period. We believe that
<FONT style="white-space: nowrap">period-to</FONT>-period
comparisons of our results of operations should not be relied
upon as an indication of future performance. In addition, our
results of operations could be below expectations of public
market analysts and investors in future periods, which would
likely cause the market price of our common stock to decline.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>We anticipate that an increasing portion of our revenues
will depend on our arrangements with original equipment
manufacturers that have no obligation to sell our software
applications, and the termination or expiration of these
arrangements or the failure of original equipment manufacturers
to sell our software applications would have a material adverse
effect on our future revenues and results of operations.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have original equipment manufacturer agreements with Dell and
Hitachi Data Systems and a reseller agreement with Dell. These
original equipment manufacturers sell our software applications
and in
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">13

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
some cases incorporate our data management software into systems
that they sell. A material portion of our revenues is generated
through these arrangements, and we expect this contribution to
grow as a percentage of our total revenues in the future.
However, we have no control over the shipping dates or volumes
of systems these original equipment manufacturers ship and they
have no obligation to ship systems incorporating our software
applications. They also have no obligation to recommend or offer
our software applications exclusively or at all, and they have
no minimum sales requirements and can terminate our relationship
at any time. These original equipment manufacturers also could
choose to develop their own data management software internally
and incorporate those products into their systems instead of our
software applications. The original equipment manufacturers that
we do business with also compete with one another. If one of our
original equipment manufacturer partners views our arrangement
with another original equipment manufacturer as competing with
its products, it may decide to stop doing business with us. Any
material decrease in the volume of sales generated by original
equipment manufacturers we do business with, as a result of
these factors or otherwise, would have a material adverse effect
on our revenues and results of operations in future periods.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sales through our original equipment manufacturer agreements
accounted for approximately 3% of our total revenues for fiscal
2005 and 11% of our total revenues for fiscal 2006. Sales
through our original equipment manufacturer agreement and our
reseller agreement with Dell accounted for approximately 7% and
11%, respectively, of total revenues for fiscal 2006, and a
total of approximately 23% of our accounts receivable balance as
of March&nbsp;31, 2006. If we were to see a decline in our sales
through Dell and/or an impairment of our receivable balance from
Dell, it could have a significant adverse effect on our results
of operations.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>The loss of key personnel or the failure to attract and
retain highly qualified personnel could have an adverse effect
on our business.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our future performance depends on the continued service of our
key technical, sales, services and management personnel. We rely
on our executive officers and senior management to execute our
existing business operations and identify and pursue new growth
opportunities. The loss of key employees could result in
significant disruptions to our business, and the integration of
replacement personnel could be time consuming, cause additional
disruptions to our business and be unsuccessful. We do not carry
key person life insurance covering any of our employees.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our future success also depends on our continued ability to
attract and retain highly qualified technical, sales, services
and management personnel. Competition for such personnel is
intense, and we may fail to retain our key technical, sales,
services and management employees or attract or retain other
highly qualified technical, sales, services and management
personnel in the future. Conversely, if we fail to manage
employee performance or reduce staffing levels when required by
market conditions, our personnel costs would be excessive and
our business and profitability could be adversely affected.
</DIV>

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<B><I>Our ability to sell our software applications is highly
dependent on the quality of our services offerings, and our
failure to offer high quality support and professional services
would have a material adverse affect on our sales of software
applications and results of operations.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our services include the assessment and design of solutions to
meet our customers&#146; storage management requirements and the
efficient installation and deployment of our software
applications based on specified business objectives. Further,
once our software applications are deployed, our customers
depend on us to resolve issues relating to our software
applications. A high level of service is critical for the
successful marketing and sale of our software. If we or our
partners do not effectively install or deploy our applications,
or succeed in helping our customers quickly resolve
post-deployment issues, it would adversely affect our ability to
sell software products to existing customers and could harm our
reputation with potential customers. As a result, our failure to
maintain high quality support and professional services would
have a material adverse effect on our sales of software
applications and results of operations.
</DIV>

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<B><I>We rely on indirect sales channels, such as value-added
resellers, systems integrators and corporate resellers, for the
distribution of our software applications, and the failure of
these channels to effectively sell our software applications
could have a material adverse effect on our revenues and results
of operations.</I></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We rely significantly on our value-added resellers, systems
integrators and corporate resellers, which we collectively refer
to as resellers, for the marketing and distribution of our
software applications and services. Resellers are our most
significant distribution channel. However, our agreements with
resellers are generally not exclusive, are generally renewable
annually and in many cases may be terminated by either party
without cause. Many of our resellers carry software applications
that are competitive with ours. These resellers may give a
higher priority to other software applications, including those
of our competitors, or may not continue to carry our software
applications at all. If a number of resellers were to
discontinue or reduce the sales of our products, or were to
promote our competitors&#146; products in lieu of our
applications, it would have a material adverse effect on our
future revenues. Events or occurrences of this nature could
seriously harm our sales and results of operations. In addition,
we expect that a significant portion of our sales growth will
depend upon our ability to identify and attract new reseller
partners. The use of resellers is an integral part of our
distribution network. We believe that our competitors also use
reseller arrangements. Our competitors may be more successful in
attracting reseller partners and could enter into exclusive
relationships with resellers that make it difficult to expand
our reseller network. Any failure on our part to expand our
network of resellers could impair our ability to grow revenues
in the future. Sales through our reseller agreement with Dell
accounted for approximately 11% of total revenues for fiscal
2005 and 2006.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Some of our resellers possess significant resources and advanced
technical abilities. These resellers, particularly our corporate
resellers, may, either independently or jointly with our
competitors, develop and market software applications and
related services that compete with our offerings. If this were
to occur, these resellers might discontinue marketing and
distributing our software applications and services. In
addition, these resellers would have an advantage over us when
marketing their competing software applications and related
services because of their existing customer relationships. The
occurrence of any of these events could have a material adverse
effect on our revenues and results of operations.
</DIV>

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<B><I>Sales of only a few of our software applications make up a
substantial portion of our revenues, and a decline in demand for
any one of these software applications could have a material
adverse effect on our sales, profitability and financial
condition.</I></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We derive the majority of our software revenue from our data
protection software applications, which primarily include Galaxy
Backup and Recovery. Sales of our data protection software
applications represented approximately 90% of our total software
revenue for fiscal 2006. In addition, we derive substantially
all of our services revenue from customer and technical support
associated with our data protection software applications. As a
result, we are particularly vulnerable to fluctuations in demand
for this software application, whether as a result of
competition, product obsolescence, technological change,
budgetary constraints of our customers or other factors. If
demand for any of these software applications declines
significantly, our sales, profitability and financial condition
would be adversely affected.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>Our software applications are complex and contain
undetected errors, which could adversely affect not only our
software applications&#146; performance but also our reputation
and the acceptance of our software applications in the
market.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Software applications as complex as those we offer contain
undetected errors or failures. Despite extensive testing by us
and by our customers, we have in the past discovered errors in
our software applications and will do so in the future. As a
result of past discovered errors, we experienced delays and lost
revenues while we corrected those software applications. In
addition, customers in the past have brought to our attention
&#147;bugs&#148; in our software created by the customers&#146;
unique operating environments. Although we have been able to fix
these software bugs in the past, we may not always be able to do
so. Our software products may also be subject to intentional
attacks by viruses that seek to take advantage of these bugs,
errors or other weaknesses. Any of these events may result in
the loss of, or delay in, market
</DIV>

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acceptance of our software applications and services, which
would seriously harm our sales, results of operations and
financial condition.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Furthermore, we believe that our reputation and name recognition
are critical factors in our ability to compete and generate
additional sales. Promotion and enhancement of our name will
depend largely on our success in continuing to provide effective
software applications and services. The occurrence of errors in
our software applications or the detection of bugs by our
customers may damage our reputation in the market and our
relationships with our existing customers and, as a result, we
may be unable to attract or retain customers.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, because our software applications are used to
manage data that is often critical to our customers, the
licensing and support of our software applications involve the
risk of product liability claims. Any product liability
insurance we carry may not be sufficient to cover our losses
resulting from product liability claims. The successful
assertion of one or more large claims against us could have a
material adverse effect on our financial condition.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>We may not receive significant revenues from our current
research and development efforts for several years, if at
all.</I></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Developing software is expensive, and the investment in product
development may involve a long payback cycle. In fiscal 2005 and
2006, our research and development expenses were
$17.2&nbsp;million, or approximately 21% of our total revenues,
and $19.3&nbsp;million, or approximately 18% of our total
revenues, respectively. Our future plans include significant
investments in software research and development and related
product opportunities. We believe that we must continue to
dedicate a significant amount of resources to our research and
development efforts to maintain our competitive position.
However, we do not expect to receive significant revenues from
these investments for several years, if at all.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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<B><I>We encounter long sales and implementation cycles,
particularly for our larger customers, which could have an
adverse effect on the size, timing and predictability of our
revenues.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Potential or existing customers, particularly larger enterprise
customers, generally commit significant resources to an
evaluation of available software and require us to expend
substantial time, effort and money educating them as to the
value of our software and services. Sales of our core software
products to these larger customers often require an extensive
education and marketing effort.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We could expend significant funds and resources during a sales
cycle and ultimately fail to close the sale. Our sales cycle for
all of our products and services is subject to significant risks
and delays over which we have little or no control, including:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our customers&#146; budgetary constraints;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the timing of our customers&#146; budget cycles and approval
    processes;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our customers&#146; willingness to replace their current
    software solutions;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our need to educate potential customers about the uses and
    benefits of our products and services;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the timing of the expiration of our customers&#146; current
    license agreements or outsourcing agreements for similar
    services.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If we are unsuccessful in closing sales, it could have a
material adverse effect on the size, timing and predictability
of our revenues.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>If we are unable to manage our growth, there could be a
material adverse effect on our business, the quality of our
products and services and our ability to retain key
personnel.</I></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have experienced a period of significant growth in recent
years. Our revenues increased 32% for fiscal 2006 compared to
fiscal 2005, and the number of our customers increased
significantly during that
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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period. Our growth has placed increased demands on our
management and other resources and will continue to do so in the
future. We may not be able to maintain or accelerate our current
growth rate, manage our expanding operations effectively or
achieve planned growth on a timely or profitable basis. Managing
our growth effectively will involve, among other things:
</DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    continuing to retain, motivate and manage our existing employees
    and attract and integrate new employees;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    continuing to provide a high level of services to an increasing
    number of customers;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    maintaining the quality of product and services offerings while
    controlling our expenses;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    developing new sales channels that broaden the distribution of
    our software applications and services;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    developing, implementing and improving our operational,
    financial, accounting and other internal systems and controls on
    a timely basis.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If we are unable to manage our growth effectively, there could
be a material adverse effect on our ability to maintain or
increase revenues and profitability, the quality of our data
management software, the quality of our services offerings and
our ability to retain key personnel. These factors could
adversely affect our reputation in the market and our ability to
generate future sales from new or existing customers.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>We depend on growth in the data management software
market, and lack of growth or contraction in this market or a
general downturn in economic and market conditions could have a
material adverse effect on our sales and financial
condition.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Demand for data management software is linked to growth in the
amount of data generated and stored, demand for data retention
and management (whether as a result of regulatory requirements
or otherwise) and demand for and adoption of new storage devices
and networking technologies. Because our software applications
are concentrated within the data management software market, if
the demand for storage devices, storage software applications,
storage capacity or storage networking devices declines, our
sales, profitability and financial condition would be materially
adversely affected. Segments of the computer and software
industry have in the past experienced significant economic
downturns. The occurrence of any of these factors in the data
management software market could materially adversely affect our
sales, profitability and financial condition.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Furthermore, the data management software market is dynamic and
evolving. Our future financial performance will depend in large
part on continued growth in the number of organizations adopting
data management software for their computing environments. The
market for data management software may not continue to grow at
historic rates, or at all. If this market fails to grow or grows
more slowly than we currently anticipate, our sales and
profitability could be adversely affected.
</DIV>

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<B><I>Our services revenue produces lower gross margins than our
software revenue, and an increase in services revenue relative
to software revenue would harm our overall gross margins.</I></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our services revenue, which includes fees for customer support,
assessment and design consulting, implementation and
post-deployment services and training, was approximately 40% of
our total revenues for fiscal 2005 and approximately 43% of our
total revenues for fiscal 2006. Our services revenue has lower
gross margins than our software revenue. The gross margin of our
services revenue was 69.8% for fiscal 2005 and 71.9% for fiscal
2006. The gross margin of our software revenue was 97.0% for
fiscal 2005 and 97.2% for fiscal 2006. An increase in the
percentage of total revenues represented by services revenue
would adversely affect our overall gross margins.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The volume and profitability of services can depend in large
part upon:
</DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    competitive pricing pressure on the rates that we can charge for
    our services;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the complexity of our customers&#146; information technology
    environments and the existence of multiple non-integrated legacy
    databases;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the resources directed by our customers to their implementation
    projects;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the extent to which outside consulting organizations provide
    services directly to customers.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any erosion of our margins for our services revenue or any
adverse change in the mix of our license versus services revenue
would adversely affect our operating results.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>Our international sales and operations are subject to
factors that could have an adverse effect on our results of
operations.</I></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have significant sales and services operations outside the
United States, and derive a substantial portion of our revenues
from these operations. We also plan to expand our international
operations. In fiscal 2006, we derived approximately 29% of our
revenues from sales outside the United States.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our international operations are subject to risks related to the
differing legal, political, social and regulatory requirements
and economic conditions of many countries, including:
</DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    difficulties in staffing and managing our international
    operations;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    foreign countries may impose additional withholding taxes or
    otherwise tax our foreign income, impose tariffs or adopt other
    restrictions on foreign trade or investment, including currency
    exchange controls;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    general economic conditions in the countries in which we
    operate, including seasonal reductions in business activity in
    the summer months in Europe and in other periods in other
    countries, could have an adverse effect on our earnings from
    operations in those countries;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    imposition of, or unexpected adverse changes in, foreign laws or
    regulatory requirements may occur, including those pertaining to
    export duties and quotas, trade and employment restrictions;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    longer payment cycles for sales in foreign countries and
    difficulties in collecting accounts receivable;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    competition from local suppliers;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    costs and delays associated with developing software in multiple
    languages;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    political unrest, war or acts of terrorism.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our business in emerging markets requires us to respond to rapid
changes in market conditions in those markets. Our overall
success in international markets depends, in part, upon our
ability to succeed in differing legal, regulatory, economic,
social and political conditions. We may not continue to succeed
in developing and implementing policies and strategies that will
be effective in each location where we do business. Furthermore,
the occurrence of any of the foregoing factors may have a
material adverse effect on our business and results of
operations.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>We are exposed to domestic and foreign currency
fluctuations that could harm our reported revenues and results
of operations.</I></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our international sales are generally denominated in foreign
currencies, and this revenue could be materially affected by
currency fluctuations. Approximately 29% of our sales were
outside the United States in fiscal 2006. Our primary exposures
are to fluctuations in exchange rates for the U.S.&nbsp;dollar
versus the Euro and, to a lesser extent, the Australian dollar,
British pound sterling, Canadian dollar and Chinese yuan.
Changes in currency exchange rates could adversely affect our
reported revenues and could require us to reduce our prices to
remain competitive in foreign markets, which could also have a
material adverse
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
effect on our results of operations. We have not historically
hedged our exposure to changes in foreign currency exchange
rates and, as a result, we could incur unanticipated gains or
losses.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>We are currently unable to accurately predict what our
short-term and long-term effective tax rates will be in the
future.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are subject to income taxes in both the United States and the
various foreign jurisdictions in which we operate. Significant
judgment is required in determining our worldwide provision for
income taxes and, in the ordinary course of business, there are
many transactions and calculations where the ultimate tax
determination is uncertain. Our effective tax rates could be
adversely affected by changes in the mix of earnings in
countries with differing statutory tax rates, changes in the
valuation of deferred tax assets and liabilities or changes in
tax laws, as well as other factors. Our judgments may be subject
to audits or reviews by local tax authorities in each of these
jurisdictions, which could adversely affect our income tax
provisions. Furthermore, we have had limited historical
profitability upon which to base our estimate of future
short-term and long-term effective tax rates.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>Our management and auditors have identified a material
weakness in the design and operation of our internal controls as
of March&nbsp;31, 2006 which, if not properly remediated, could
result in material misstatements in our financial statements in
future periods.</I></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our independent auditors reported to the Audit Committee of the
Board of Directors a material weakness in the design and
operation of our internal controls as of March&nbsp;31, 2006. A
material weakness is defined by the Public Company Accounting
Oversight Board as a significant deficiency, or combination of
significant deficiencies, that results in more than a remote
likelihood that a material misstatement of the annual or interim
financial statements will not be prevented or detected.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The identified material weakness related to our revenue
recognition procedures for certain multiple-element arrangements
accounted for under Statement of Position (&#147;SOP&#148;)
<FONT style="white-space: nowrap">97-2,</FONT> <I>Software
Revenue Recognition,</I> as amended by
SOP&nbsp;<FONT style="white-space: nowrap">98-4</FONT> and
SOP&nbsp;<FONT style="white-space: nowrap">98-9.</FONT>
Specifically, during fiscal 2006 we began to require a signed
Statement of Work documenting the scope of our other
professional services offerings when included in certain
multiple-element arrangements. Persuasive evidence of an
arrangement does not exist for such multiple-element
arrangements until the Statement of Work covering the other
professional services is signed by both CommVault and the
end-user customer. During fiscal 2006, we recorded software and
services revenue of approximately $2.5&nbsp;million and
$0.1&nbsp;million, respectively, related to certain
multiple-element arrangement transactions before a signed
Statement of Work covering the other professional services was
obtained. As a result, we recorded a reduction to revenue and a
corresponding increase to deferred revenue of approximately
$2.6&nbsp;million in fiscal 2006 related to this material
weakness.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe we have remediated the material weakness by
implementing new policies and procedures to identify all
multiple-element arrangements that contain subsequent agreements
that must be signed, even if the terms and conditions are the
same as the initial purchase order or other persuasive evidence.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the remediated policies and procedures we have implemented
are insufficient to address the material weakness as of
March&nbsp;31, 2006, or if additional material weaknesses or
significant deficiencies in our internal controls are discovered
in the future, we may fail to meet our future reporting
obligations and our financial statements may contain material
misstatements. Any such failure could also adversely affect the
results of the periodic management evaluations and annual
auditor attestation reports regarding the effectiveness of our
&#147;internal control over financial reporting&#148; that will
be required when the rules of the Securities and Exchange
Commission (&#147;SEC&#148;) under Section&nbsp;404 of the
Sarbanes-Oxley Act of 2002 become applicable to us beginning
with the required filing of our Annual Report on
Form&nbsp;<FONT style="white-space: nowrap">10-K</FONT> for
fiscal 2008.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>We develop software applications that interoperate with
operating systems and hardware developed by others, and if the
developers of those operating systems and hardware do not
cooperate with us or we are unable to devote the necessary
resources so that our applications interoperate with those
systems, our software development efforts may be delayed or
foreclosed and our business and results of operations may be
adversely affected.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our software applications operate primarily on the Windows,
UNIX, Linux and Novell Netware operating systems and the
hardware devices of numerous manufacturers. When new or updated
versions of these operating systems and hardware devices are
introduced, it is often necessary for us to develop updated
versions of our software applications so that they interoperate
properly with these systems and devices. We may not accomplish
these development efforts quickly or cost-effectively, and it is
not clear what the relative growth rates of these operating
systems and hardware will be. These development efforts require
substantial capital investment, the devotion of substantial
employee resources and the cooperation of the developers of the
operating systems and hardware. For some operating systems, we
must obtain some proprietary application program interfaces from
the owner in order to develop software applications that
interoperate with the operating system. Operating system owners
have no obligation to assist in these development efforts. If
they do not provide us with assistance or the necessary
proprietary application program interfaces on a timely basis, we
may experience delays or be unable to expand our software
applications into other areas.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>Our ability to sell to the U.S.&nbsp;federal government is
subject to uncertainties which could have a material adverse
effect on our sales and results of operations.</I></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our ability to sell software applications and services to the
U.S.&nbsp;federal government is subject to uncertainties related
to the government&#146;s future funding commitments and our
ability to maintain certain security clearances complying with
the Department of Defense and other agency requirements. For
fiscal 2006, approximately 8% of our revenues were derived from
sales where the U.S.&nbsp;federal government was the end user.
The future prospects for our business are also sensitive to
changes in government policies and funding priorities. Changes
in government policies or priorities, including funding levels
through agency or program budget reductions by the
U.S.&nbsp;Congress or government agencies, could materially
adversely affect our ability to sell our software applications
to the U.S.&nbsp;federal government, causing our business
prospects to suffer.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, our U.S.&nbsp;federal government sales require our
employees to maintain various levels of security clearances.
Obtaining and maintaining security clearances for employees
involves a lengthy process, and it is difficult to identify,
retain and recruit qualified employees who already hold security
clearances. To the extent that we are not able to obtain
security clearances or engage employees with security
clearances, we may not be able to effectively sell our software
applications and services to the U.S.&nbsp;federal government,
which would have an adverse effect on our sales and results of
operations.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>Protection of our intellectual property is limited, and
any misuse of our intellectual property by others could
materially adversely affect our sales and results of
operations.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our success depends significantly upon proprietary technology in
our software, documentation and other written materials. To
protect our proprietary rights, we rely on a combination of:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    patents;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    copyright and trademark laws;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    trade secrets;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    confidentiality procedures;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    contractual provisions.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These methods afford only limited protection. Despite this
limited protection, any issued patent may not provide us with
any competitive advantages or may be challenged by third
parties, and the patents of
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
others may seriously impede our ability to conduct our business.
Further, our pending patent applications may not result in the
issuance of patents, and any patents issued to us may not be
timely or broad enough to protect our proprietary rights. We may
also develop proprietary products or technologies that cannot be
protected under patent law.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Despite our efforts to protect our proprietary rights,
unauthorized parties may attempt to copy aspects of our software
applications or to obtain and use information that we regard as
proprietary. Policing unauthorized use of our software
applications is difficult, and we expect software piracy to
continue to be a persistent problem. In licensing our software
applications, we typically rely on &#147;shrink wrap&#148;
licenses that are not signed by licensees. We also rely on
&#147;click wrap&#148; licenses which are downloaded over the
internet. We may have difficulty enforcing these licenses in
some jurisdictions. In addition, the laws of some foreign
countries do not protect our proprietary rights to as great an
extent as do the laws of the United States. Our attempts to
protect our proprietary rights may not be adequate. Our
competitors may independently develop similar technology,
duplicate our software applications or design around patents
issued to us or other intellectual property rights of ours.
Litigation may be necessary in the future to enforce our
intellectual property rights, protect our trade secrets or
determine the validity and scope of the proprietary rights of
others. Litigation could result in substantial costs and
diversion of resources and management attention. In addition,
from time to time we are participants or members of various
industry standard-setting organizations or other industry
technical organizations. Our participation or membership in such
organizations may, in some circumstances, require us to enter
into royalty or licensing agreements with third parties
regarding our intellectual property under terms established by
those organizations which we may not find favorable.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Additionally, the loss of key personnel involved with
developing, managing or maintaining our intellectual property
could have an adverse effect on our business.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>Claims that we misuse the intellectual property of others
could subject us to significant liability and disrupt our
business, which could have a material adverse effect on our
results of operations and financial condition.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Because of the nature of our business, we may become subject to
material claims of infringement by competitors and other third
parties with respect to current or future software applications,
trademarks or other proprietary rights. We expect that software
developers will increasingly be subject to infringement claims
as the number of software applications and competitors in our
industry segment grows and the functionality of software
applications in different industry segments overlaps. Any such
claims, whether meritorious or not, could be time-consuming,
result in costly litigation, cause shipment delays or require us
to enter into royalty or licensing agreements with third
parties, which may not be available on terms that we deem
acceptable, if at all. Any of these claims could disrupt our
business and have a material adverse effect on our results of
operations and financial condition.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>We may not be able to respond to rapid technological
changes with new software applications and services offerings,
which could have a material adverse effect on our sales and
profitability.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The markets for our software applications are characterized by
rapid technological changes, changing customer needs, frequent
new software product introductions and evolving industry
standards. The introduction of software applications embodying
new technologies and the emergence of new industry standards
could make our existing and future software applications
obsolete and unmarketable. As a result, we may not be able to
accurately predict the lifecycle of our software applications,
and they may become obsolete before we receive the amount of
revenues that we anticipate from them. If any of the foregoing
events were to occur, our ability to retain or increase market
share in the data management software market could be materially
adversely affected.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To be successful, we need to anticipate, develop and introduce
new software applications and services on a timely and
cost-effective basis that keep pace with technological
developments and emerging industry standards and that address
the increasingly sophisticated needs of our customers. We may
fail to develop
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
and market software applications and services that respond to
technological changes or evolving industry standards, experience
difficulties that could delay or prevent the successful
development, introduction and marketing of these applications
and services or fail to develop applications and services that
adequately meet the requirements of the marketplace or achieve
market acceptance. Our failure to develop and market such
applications and services on a timely basis, or at all, could
have a material adverse effect on our sales and profitability.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>We cannot predict our future capital needs and we may be
unable to obtain additional financing to fund acquisitions,
which could have a material adverse effect on our business,
results of operations and financial condition.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We may need to raise additional funds in the future in order to
acquire complementary businesses, technologies, products or
services. Any required additional financing may not be available
on terms acceptable to us, or at all. If we raise additional
funds by issuing equity securities, you may experience
significant dilution of your ownership interest, and the
newly-issued securities may have rights senior to those of the
holders of our common stock. If we raise additional funds by
obtaining loans from third parties, the terms of those financing
arrangements may include negative covenants or other
restrictions on our business that could impair our operational
flexibility, and would also require us to fund additional
interest expense. If additional financing is not available when
required or is not available on acceptable terms, we may be
unable to successfully develop or enhance our software and
services through acquisitions in order to take advantage of
business opportunities or respond to competitive pressures,
which could have a material adverse effect on our software and
services offerings, revenues, results of operations and
financial condition. We have no plans, nor are we currently
considering any proposals or arrangements, written or otherwise,
to acquire a business, technology, product or service.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>Acquisitions involve risks that could adversely affect our
business, results of operations and financial condition.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We may pursue acquisitions of businesses, technologies, products
or services that we believe complement or expand our existing
business. Acquisitions involve numerous risks, including:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    diversion of management&#146;s attention during the acquisition
    and integration process;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    costs, delays and difficulties of integrating the acquired
    company&#146;s operations, technologies and personnel into our
    existing operations and organization;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    adverse impact on earnings as a result of amortizing the
    acquired company&#146;s intangible assets or impairment charges
    related to write-downs of goodwill related to acquisitions;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    issuances of equity securities to pay for acquisitions, which
    may be dilutive to existing stockholders;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    potential loss of customers or key employees of acquired
    companies;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    impact on our financial condition due to the timing of the
    acquisition or our failure to meet operating expectations for
    acquired businesses;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    assumption of unknown liabilities of the acquired company.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any acquisitions of businesses, technologies, products or
services may not generate sufficient revenues to offset the
associated costs of the acquisitions or may result in other
adverse effects.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>Our use of &#147;open source&#148; software could
negatively affect our business and subjects us to possible
litigation.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Some of the products or technologies acquired, licensed or
developed by us may incorporate so-called &#147;open
source&#148; software, and we may incorporate open source
software into other products in the future. Such open source
software is generally licensed by its authors or other third
parties under open source licenses, including, for example, the
GNU General Public License, the GNU Lesser General Public
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
License, the Common Public License, &#147;Apache-style&#148;
licenses, &#147;Berkley Software Distribution or BSD-style&#148;
licenses and other open source licenses. We monitor our use of
open source software to avoid subjecting our products to
conditions we do not intend. Although we believe that we have
complied with our obligations under the various applicable
licenses for open source software that we use, there is little
or no legal precedent governing the interpretation of many of
the terms of certain of these licenses, and therefore the
potential impact of these terms on our business is somewhat
unknown and may result in unanticipated obligations regarding
our products and technologies. The use of such open source
software may ultimately subject some of our products to
unintended conditions which may negatively affect our business,
financial condition, operating results, cash flow and ability to
commercialize our products or technologies.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Some of these open source licenses may subject us to certain
conditions, including requirements that we offer our products
that use the open source software for no cost, that we make
available source code for modifications or derivative works we
create based upon, incorporating or using the open source
software and/or that we license such modifications or derivative
works under the terms of the particular open source license. If
an author or other third party that distributes such open source
software were to allege that we had not complied with the
conditions of one or more of these licenses, we could be
required to incur significant legal expenses defending against
such allegations. If our defenses were not successful, we could
be enjoined from the distribution of our products that contained
the open source software and required to make the source code
for the open source software available to others, to grant third
parties certain rights of further use of our software or to
remove the open source software from our products, which could
disrupt the distribution and sale of some of our products. In
addition, if we combine our proprietary software with open
source software in a certain manner, under some open source
licenses we could be required to release the source code of our
proprietary software. If an author or other third party that
distributes open source software were to obtain a judgment
against us based on allegations that we had not complied with
the terms of any such open source licenses, we could also be
subject to liability for copyright infringement damages and
breach of contract for our past distribution of such open source
software.
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Risks Relating to the Offering</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>An active market for our common stock may not develop,
which may inhibit the ability of our stockholders to sell common
stock following this offering.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
An active or liquid trading market in our common stock may not
develop upon completion of this offering, or if it does develop,
it may not continue. If an active trading market does not
develop, you may have difficulty selling any of our common stock
that you buy. The initial public offering price of our common
stock has been determined through our negotiations with the
underwriters and may be higher than the market price of our
common stock after this offering. Consequently, you may not be
able to sell shares of our common stock at prices equal to or
greater than the price paid by you in the offering. See
&#147;Underwriting&#148; for a discussion of the factors that we
and the underwriters will consider in determining the initial
public offering price.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>The price of our common stock may be highly volatile and
may decline regardless of our operating performance.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The market price of our common stock could be subject to
significant fluctuations in response to:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    variations in our quarterly or annual operating results;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    changes in financial estimates, treatment of our tax assets or
    liabilities or investment recommendations by securities analysts
    following our business;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the public&#146;s response to our press releases, our other
    public announcements and our filings with the Securities and
    Exchange Commission;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    changes in accounting standards, policies, guidance or
    interpretations or principles;</TD>
</TR>

</TABLE>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    sales of common stock by our directors, officers and significant
    stockholders;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    announcements of technological innovations or enhanced or new
    products by us or our competitors;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our failure to achieve operating results consistent with
    securities analysts&#146; projections;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the operating and stock price performance of other companies
    that investors may deem comparable to us;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    broad market and industry factors;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    other events or factors, including those resulting from war,
    incidents of terrorism or responses to such events.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The market prices of software companies have been extremely
volatile. Stock prices of many software companies have often
fluctuated in a manner unrelated or disproportionate to the
operating performance of such companies. In the past, following
periods of market volatility, stockholders have often instituted
securities class action litigation. If we were involved in
securities litigation, it could have a substantial cost and
divert resources and the attention of management from our
business.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>You will experience an immediate and substantial dilution
in the net tangible book value of the common shares you purchase
in this offering.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The initial public offering price is substantially higher than
the pro forma net tangible book value per share of our
outstanding common stock. As a result, investors purchasing
common stock in this offering will incur immediate dilution of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share (based on an offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share, the
midpoint of the estimated price range shown on the cover page of
this prospectus). The exercise of outstanding options and future
equity issuances may result in further dilution to investors. A
$1.00 increase (decrease) in the assumed initial public offering
price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share would increase (decrease) our pro forma as adjusted net
tangible book value per share after this offering and the
concurrent private placement by
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
and the dilution to new investors by
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
assuming the number of shares offered by us, as set forth on the
cover page of this prospectus, remains the same and after
deducting the estimated underwriting discounts and commissions
and estimated offering expenses payable by us. See
&#147;Dilution.&#148;
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>Future sales of our common stock, or the perception that
such future sales may occur, may cause our stock price to
decline and impair our ability to obtain capital through future
stock offerings.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A substantial number of shares of our common stock could be sold
into the public market after this offering. The occurrence of
such sales, or the perception that such sales could occur, could
materially and adversely affect our stock price and could impair
our ability to obtain capital through an offering of equity
securities. The shares of common stock being sold in this
offering will be freely tradable, except for any shares sold to
our affiliates.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with this offering, all members of our senior
management, our directors and substantially all of our
stockholders have entered into written &#147;lock-up&#148;
agreements providing in general that, for a period of
180&nbsp;days from the date of this prospectus, they will not,
among other things, sell their shares without the prior written
consent of Credit Suisse Securities (USA) LLC and Goldman,
Sachs&nbsp;&#38; Co. However, these
<FONT style="white-space: nowrap">lock-up</FONT> agreements are
subject to a number of specified exceptions. See &#147;Shares
Eligible for Future Sale&nbsp;&#151;
<FONT style="white-space: nowrap">Lock-up</FONT>
Agreements&#148; for more information regarding these
<FONT style="white-space: nowrap">lock-up</FONT> agreements.
Upon the expiration of the
<FONT style="white-space: nowrap">lock-up</FONT> period, an
additional &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of
our common stock will be tradable in the public market subject,
in most cases, to volume and other restrictions under federal
securities laws. In addition, upon completion of this offering,
options exercisable for an aggregate of
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our common stock will be outstanding. We have entered into
agreements with the holders of
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our common stock under which, subject to the applicable
<FONT style="white-space: nowrap">lock-up</FONT> agreements, we
may be required to register those shares.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>Credit Suisse Securities (USA)&nbsp;LLC, an underwriter in
this offering, has an interest in the successful completion of
this offering beyond the underwriting discounts and commissions
it will receive.</I></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Affiliates of Credit Suisse Securities (USA)&nbsp;LLC, an
underwriter in this offering, will receive proceeds from this
offering. Affiliates of Credit Suisse Securities (USA)&nbsp;LLC
own approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our common
stock as
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006 (calculated without giving effect to this offering or the
conversion of any shares of preferred stock into common stock),
98.1% of our Series&nbsp;A preferred stock, 89.8% of our
Series&nbsp;B preferred stock, 100% of our Series&nbsp;C
preferred stock, 80.9% of our Series&nbsp;D preferred stock,
100% of our Series&nbsp;E preferred stock, 13.4% of our
Series&nbsp;AA preferred stock, 30.0% of our Series&nbsp;BB
preferred stock and 15.4% of our Series&nbsp;CC preferred stock.
In connection with this offering, all of the shares of preferred
stock held by affiliates of Credit Suisse Securities
(USA)&nbsp;LLC will be converted into a total
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our common stock. We will also pay to affiliates of Credit
Suisse Securities (USA)&nbsp;LLC
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
from the proceeds of this offering, the concurrent private
placement and borrowings under our new term loan
(or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the total proceeds) in
satisfaction of the amounts due upon the conversion into common
stock of their holdings of our Series&nbsp;A, B, C, D and E
preferred stock (including accrued dividends, and assuming the
offering is completed on &nbsp;2006). See &#147;Principal and
Selling Stockholders&#148; and &#147;Certain Relationships and
Related Party Transactions&#148; for a more complete description
of those affiliates&#146; ownership of our capital stock.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, certain affiliates of Credit Suisse Securities
(USA)&nbsp;LLC are selling stockholders in this offering. Those
affiliates of Credit Suisse Securities (USA)&nbsp;LLC will sell
an aggregate
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
(or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
if the underwriters exercise their over-allotment option in
full) in this offering and will receive aggregate sale proceeds
of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
or
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
if the underwriters exercise their over-allotment option in full
(in each case, based on an offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, the midpoint of the estimated price range shown on the
cover page of this prospectus), less underwriting discounts and
commissions. Upon completion of the offering and related
transactions, affiliates of Credit Suisse Securities
(USA)&nbsp;LLC will own
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our common
stock (or approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our
common stock if the underwriters exercise their over-allotment
option in full). See &#147;Principal and Selling
Stockholders.&#148;
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These affiliations present a conflict of interest because Credit
Suisse Securities (USA)&nbsp;LLC has an interest in the
successful completion of this offering beyond its interest as an
underwriter in this offering. The conflict of interest arises
due to the interests of its affiliates in this offering both as
selling stockholders and recipients of proceeds of the offering
by CommVault. This offering therefore is being made using a
&#147;qualified independent underwriter&#148; in compliance with
the applicable provisions of Rule&nbsp;2720 of the Conduct Rules
of the National Association of Securities Dealers, Inc., which
are intended to address potential conflicts of interest
involving underwriters. See &#147;Underwriting&#148; for a more
detailed description of the independent underwriting procedures
that are being used in connection with the offering.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>Approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our
outstanding common stock has been deposited into a voting trust,
which could affect the outcome of stockholder actions.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon completion of this offering,
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our common stock owned by affiliates of Credit Suisse
Securities (USA)&nbsp;LLC, representing
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our common
stock then outstanding, will become subject to a voting trust
agreement pursuant to which the shares will be voted by an
independent voting trustee.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The voting trust agreement requires that the trustee cause the
shares subject to the voting trust to be represented at all
stockholder meetings for purposes of determining a quorum, but
the trustee is not required to vote the shares on any matter and
any determination whether to vote the shares is required by the
voting trust agreement to be made by the trustee without
consultation with Credit Suisse Securities (USA)&nbsp;LLC and
its affiliates. The voting trust agreement does not provide any
criteria that the trustee must use in determining whether or not
to vote on a matter. If, however, the trustee votes the shares
on any matter subject to a stockholder vote, including proposals
involving the election of directors, changes of
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
control and other significant corporate transactions, the shares
will be voted in the same proportion as votes cast
&#147;for&#148; or &#147;against&#148; those proposals by our
other stockholders. As long as these shares continue to be held
in the voting trust, if the trustee determines to vote the
shares on a particular matter, the voting power of all other
stockholders will be magnified by the operation of the voting
trust. With respect to matters such as the election of
directors, Delaware law provides that the requisite stockholder
vote is based on the shares actually voted. Accordingly, with
respect to these matters, the voting trust will make it possible
to control the &#147;majority&#148; vote of our stockholders
with only &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our outstanding
common stock. In addition, with respect to other matters,
including the approval of a merger or acquisition of our company
or substantially all of our assets, a majority or other
specified percentage of our outstanding shares of common stock
must be voted in favor of the matter in order for it to be
adopted. If the trustee does not vote the shares subject to the
voting trust on these matters, the effect of the non-vote would
be equivalent to a vote &#147;against&#148; the matter, making
it substantially more difficult to achieve stockholder approval
of the matter. See &#147;Description of Capital
Stock&nbsp;&#151; Voting Trust&nbsp;Agreement&#148; for more
information regarding the voting trust agreement.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>Certain provisions in our charter documents and agreements
and Delaware law may inhibit potential acquisition bids for
CommVault and prevent changes in our management.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective on the closing of this offering, our certificate of
incorporation and bylaws will contain provisions that could
depress the trading price of our common stock by acting to
discourage, delay or prevent a change of control of our company
or changes in management that our stockholders might deem
advantageous. Specific provisions in our certificate of
incorporation will include:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our ability to issue preferred stock with terms that the board
    of directors may determine, without stockholder approval;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a classified board in which only a third of the total board
    members will be elected at each annual stockholder meeting;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    advance notice requirements for stockholder proposals and
    nominations;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    limitations on convening stockholder meetings.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
As a result of these and other provisions in our certificate of
incorporation, the price investors may be willing to pay in the
future for shares of our common stock may be limited.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, we are subject to Section&nbsp;203 of the Delaware
General Corporation Law, which imposes certain restrictions on
mergers and other business combinations between us and any
holder of 15% or more of our common stock. Further, certain of
our employment agreements and incentive plans provide for
vesting of stock options and/or payments to be made to the
employees thereunder if their employment is terminated in
connection with a change of control, which could discourage,
delay or prevent a merger or acquisition at a premium price. See
&#147;Management&nbsp;&#151; Employment Agreements,&#148;
&#147;&#151;&nbsp;Change of Control Agreements&#148; and
&#147;&#151;&nbsp;Employee Benefit Plans&#148; and
&#147;Description of Capital Stock&nbsp;&#151; Anti-Takeover
Effects of Provisions of our Certificate of Incorporation and
Bylaws&#148; and &#147;&#151;&nbsp;Delaware Business Combination
Statute.&#148;
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>We do not expect to pay any dividends in the foreseeable
future.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We do not anticipate paying any cash dividends to holders of our
common stock in the foreseeable future. Consequently, investors
must rely on sales of their common stock after price
appreciation, which may never occur, as the only way to realize
any future gains on their investment. Investors seeking cash
dividends should not purchase our common stock.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>Substantially all of our assets will be pledged as
collateral to secure our term loan.</I></B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our obligations under our new term loan will be secured by
substantially all of our assets. In the event we default under
the terms of our new term loan, the lenders could accelerate our
indebtedness
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
thereunder and we would be required to repay the entire
principal amount of the term loan, which would significantly
reduce our cash balances. In the event we do not have sufficient
cash available to repay such indebtedness, Silicon Valley Bank
could foreclose on its security interest and liquidate some or
all of our assets to repay the outstanding principal and
interest under our term loan. The liquidation of a significant
portion of our assets would reduce the amount of assets
available for common stockholders in a liquidation or winding up
of our business.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>We will incur increased costs as a result of being a
public company.</I></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a public company, we will incur significant legal, accounting
and other expenses that we did not incur as a private company.
The Securities Exchange Act of 1934, the Sarbanes-Oxley Act of
2002 and new NASDAQ rules promulgated in response to the
Sarbanes-Oxley Act regulate corporate governance practices of
public companies. We expect that compliance with these public
company requirements will increase our costs and make some
activities more time consuming. For example, we will create new
board committees and adopt new internal controls and disclosure
controls and procedures. In addition, we will incur additional
expenses associated with our SEC reporting requirements. A
number of those requirements will require us to carry out
activities we have not done previously. For example, under
Section&nbsp;404 of the Sarbanes-Oxley Act, for our annual
report on
Form&nbsp;<FONT style="white-space: nowrap">10-K</FONT> for
fiscal year ending March&nbsp;31, 2008, we will need to document
and test our internal control procedures, our management will
need to assess and report on our internal control over financial
reporting and our registered public accounting firm will need to
issue an opinion on that assessment and the effectiveness of
those controls. Furthermore, if we identify any issues in
complying with those requirements (for example, if we or our
registered public accounting firm identify a material weakness
or significant deficiency in our internal control over financial
reporting), we could incur additional costs rectifying those
issues, and the existence of those issues could adversely affect
us, our reputation or investor perceptions of us. See
&#147;&#151;&nbsp;Risks Related to our
Business&nbsp;&#151;&nbsp;Our management and auditors have
identified a material weakness in the design and operation of
our internal controls as of March 31, 2006 which, if not
properly remediated, could result in material misstatements in
our financial statements in future periods.&#148; We also expect
that it will be difficult and expensive to obtain director and
officer liability insurance, and we may be required to accept
reduced policy limits and coverage or incur substantially higher
costs to obtain the same or similar coverage. As a result, it
may be more difficult for us to attract and retain qualified
persons to serve on our board of directors or as executive
officers. Advocacy efforts by stockholders and third parties may
also prompt even more changes in governance and reporting
requirements. We cannot predict or estimate the amount of
additional costs we may incur or the timing of such costs.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='103'></A>
</DIV>

<!-- link1 "FORWARD-LOOKING STATEMENTS" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>FORWARD-LOOKING STATEMENTS</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This prospectus contains forward-looking statements. In some
cases, you can identify these statements by our use of
forward-looking words such as &#147;may,&#148; &#147;will,&#148;
&#147;should,&#148; &#147;anticipate,&#148;
&#147;estimate,&#148; &#147;expect,&#148; &#147;plan,&#148;
&#147;believe,&#148; &#147;predict,&#148; &#147;potential,&#148;
&#147;project,&#148; &#147;intend,&#148; &#147;could&#148; or
similar expressions. In particular, statements regarding our
plans, strategies, prospects and expectations regarding our
business are forward-looking statements. You should be aware
that these statements and any other forward-looking statements
in this document only reflect our expectations and are not
guarantees of performance. These statements involve risks,
uncertainties and assumptions. Many of these risks,
uncertainties and assumptions are beyond our control, and may
cause actual results and performance to differ materially from
our expectations. Important factors that could cause our actual
results to be materially different from our expectations include
the risks and uncertainties set forth in this prospectus under
the heading &#147;Risk Factors.&#148; Accordingly, you should
not place undue reliance on the forward-looking statements
contained in this prospectus. These forward-looking statements
speak only as of the date on which the statements were made. We
undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='104'></A>
</DIV>

<!-- link1 "USE OF PROCEEDS" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>USE OF PROCEEDS</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We estimate that the net proceeds from the sale of shares by us
in the offering (based on an offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, the midpoint of the estimated price range shown on the
cover page of this prospectus), after deducting estimated
underwriting discounts and commissions and estimated offering
expenses payable by us, will be
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million.
We intend to use these proceeds, together with the estimated
proceeds of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
from the concurrent private placement (based on an offering
price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, the midpoint of the estimated price range shown on the
cover page of this prospectus) and estimated borrowings of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
under our new term loan, to pay
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
in satisfaction of amounts due on our Series&nbsp;A, B, C, D and
E preferred stock upon its conversion into common stock.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our affiliates will receive
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
(based on an offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, the midpoint of the estimated price range shown on the
cover page of this prospectus),
or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%, of the estimated net
proceeds to us from the offering, the concurrent private
placement and borrowings under our new term loan as a result of
their holdings of our Series&nbsp;A, B, C, D and E preferred
stock (assuming that the offering is completed
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006). See &#147;Certain Relationships and Related Party
Transactions.&#148;
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A $1.00 increase (decrease) in the assumed initial public
offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share would increase (decrease) the net proceeds to us from this
offering and the concurrent private placement by
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
and would decrease (increase) the amount of borrowings on the
closing date under our new term loan by
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
assuming the number of shares offered by us, as set forth on the
cover page of this prospectus, remains the same and after
deducting the estimated underwriting discounts and commissions
and estimated offering expenses payable by us.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will not receive any proceeds from the sale of common stock
by the selling stockholders.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='105'></A>
</DIV>

<!-- link1 "DIVIDEND POLICY" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>DIVIDEND POLICY</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have never paid cash dividends on our common stock, and we
intend to retain our future earnings, if any, to fund the growth
of our business. We therefore do not anticipate paying any cash
dividends on our common stock in the foreseeable future. Our
future decisions concerning the payment of dividends on our
common stock will depend upon our results of operations,
financial condition and capital expenditure plans, as well as
any other factors that the board of directors, in its sole
discretion, may consider relevant.
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">29

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='106'></A>
</DIV>

<!-- link1 "CAPITALIZATION" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>CAPITALIZATION</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth our cash and cash equivalents,
total current liabilities and capitalization as of
March&nbsp;31, 2006:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    on an actual basis;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    on a pro forma basis after giving effect to each of the
    following events as if each had occurred at March&nbsp;31, 2006:</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="93%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The issuance on June&nbsp;15, 2006 of a total
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock upon the cashless exercise of a warrant held by
    Dell Ventures, L.P. and pursuant to preemptive rights held by
    the holders of Series&nbsp;AA, BB and CC preferred stock that
    were triggered by the exercise of the warrant;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the conversion of all outstanding shares of our preferred stock
    into a total
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock upon the closing of this offering;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the payment of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in satisfaction of the cash amount due to holders of our
    Series&nbsp;A, B, C, D and E preferred stock upon its conversion
    into common stock upon the completion of this offering
    (including accrued dividends, and assuming the offering is
    completed
    on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,&nbsp;2006);</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the borrowing of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    under our new term loan on or immediately prior to the closing
    date of this offering in connection with the payments to the
    holders of our Series&nbsp;A, B, C, D and E preferred
    stock;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the completion of the concurrent private placement
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of our common stock at the public offering price and the
    application of the proceeds therefrom. Assuming an offering
    price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share (the midpoint of the estimated price range shown on the
    cover page of this prospectus) we will raise
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in proceeds from the concurrent private placement.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    on a pro forma as adjusted basis after giving effect to our
    receipt of the net proceeds from our sale
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock in this offering at an assumed public offering
    price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(the
    midpoint of the estimated price range shown on the cover page of
    this prospectus), after deducting estimated underwriting
    discounts and commissions and estimated offering expenses
    payable by us, as if it had occurred at March&nbsp;31, 2006.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should read this table together with the discussion under
the heading &#147;Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations&#148; and our
financial statements and the related notes included elsewhere in
this prospectus.
</DIV>

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<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="center" nowrap><B>As of March&nbsp;31, 2006</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Pro Forma As</B></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Actual</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Pro Forma</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Adjusted(1)</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="center" nowrap><B>(In thousands, except share and</B></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="center" nowrap><B>per share amounts)</B></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>48,039</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>44,015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Long-term debt:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Term loan, less current portion</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    Cumulative redeemable convertible preferred stock,
    $0.01&nbsp;par value per share, authorized in Series&nbsp;A, B,
    C, D and E: 7,000,000 total shares authorized, 3,166,254 total
    shares issued and outstanding, actual; no shares authorized,
    issued or outstanding, pro forma or pro forma as adjusted</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>99,168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Stockholders&#146; deficit:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Convertible preferred stock, $0.01&nbsp;par value per share,
    authorized in Series&nbsp;AA, BB and CC: 22,150,000 total shares
    authorized, 19,251,820 total shares issued and outstanding,
    actual; no shares authorized, issued or outstanding,
    pro&nbsp;forma or pro forma as adjusted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Preferred stock, $0.01&nbsp;par value per share, no shares
    authorized, issued or outstanding, actual or pro
    forma; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    authorized, no shares issued or outstanding, pro forma as
    adjusted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Common stock, par value $0.01&nbsp;per
    share, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    authorized, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    issued and outstanding,
    actual; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    authorized, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    issued and outstanding, pro
    forma; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    authorized, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    issued and outstanding, pro forma as adjusted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>379</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Additional paid-in capital</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred compensation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,134</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accumulated deficit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(165,148</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accumulated other comprehensive loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total stockholders&#146; equity (deficit)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(73,664</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total capitalization</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,504</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 3.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    A $1.00 increase in the assumed initial public offering price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share would increase each of cash and cash equivalents,
    additional paid-in capital and total capitalization by
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    and would decrease borrowings under our new term loan and total
    stockholders&#146; deficit by
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    and
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
    respectively, assuming the number of shares offered by us, as
    set forth on the cover page of this prospectus, remains the same
    and after deducting the estimated underwriting discounts and
    commissions and estimated offering expenses payable by us. A
    $1.00 decrease in the assumed initial public offering price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share would decrease each of cash and cash equivalents,
    additional paid-in capital and total capitalization by
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    and would increase borrowings under our new term loan and total
    stockholders&#146; deficit by
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    and
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
    respectively, assuming the number of shares offered by us, as
    set forth on the cover</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">31

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    page of this prospectus, remains the same and after deducting
    the estimated underwriting discounts and commissions and
    estimated offering expenses payable by us.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
     Share information above excludes:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock available for issuance under our 1996 Stock
    Option Plan,
    including &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock issuable upon exercise of outstanding stock
    options as
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006 at a weighted average exercise price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share; and</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock initially available for issuance under our 2006
    Long-Term Stock Incentive Plan.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">32

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='107'></A>
</DIV>

<!-- link1 "DILUTION" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>DILUTION</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If you invest in our common stock, your ownership interest will
be diluted to the extent of the difference between the public
offering price per share of our common stock and the pro forma
as adjusted net tangible book value per share of our common
stock immediately after this offering. The pro forma net
tangible book value of our common stock as of March&nbsp;31,
2006 was
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
or approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share. Pro forma net tangible book value per share represents
the amount of our total tangible assets less our total
liabilities divided by the pro forma number of shares of common
stock outstanding after giving effect to:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The issuance on June&nbsp;15, 2006 of a total
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock upon the cashless exercise of a warrant held by
    Dell Ventures, L.P. and pursuant to preemptive rights held by
    the holders of Series&nbsp;AA, BB and CC preferred stock that
    were triggered by the exercise of the warrant;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the conversion of all outstanding shares of our preferred stock
    into a total
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the payment of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in cash in satisfaction of the cash amount due to holders of our
    Series&nbsp;A, B, C, D and E preferred stock upon its conversion
    into common stock (including accrued dividends, and assuming the
    offering is completed
    on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,&nbsp;2006);</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the borrowing of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    under our new term loan on or immediately prior to the closing
    date of this offering in connection with the payments to the
    holders of our Series&nbsp;A, B, C, D and E preferred
    stock;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the completion of the concurrent private placement
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of our common stock at the public offering price and the
    application of the proceeds therefrom. Assuming an offering
    price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share (the midpoint of the estimated price range shown on the
    cover page of this prospectus) we will raise
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in proceeds from the concurrent private placement.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dilution in pro forma net tangible book value per share
represents the difference between the amount per share paid by
purchasers of shares of common stock in this offering and the
pro forma as adjusted net tangible book value per share of
common stock immediately after the completion of this offering.
After giving effect to the sale
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock in this offering
and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock in the concurrent private placement at an
assumed public offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(the
midpoint of the estimated price range shown on the cover page of
this prospectus), and after deducting the estimated underwriting
discounts and commissions and estimated offering expenses
payable by us, our pro&nbsp;forma as adjusted net tangible book
value as of March&nbsp;31, 2006 would have been
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
or approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share. This represents an immediate increase in pro forma as
adjusted net tangible book value of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share to existing stockholders and an immediate dilution of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share to new investors. The following table illustrates this per
share dilution:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Assumed initial public offering price per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    $</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pro forma net tangible book value per share as of March&nbsp;31,
    2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    $</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Increase per share attributable to new investors</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pro forma as adjusted net tangible book value per share after
    this offering</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dilution per share to new investors</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    $</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A $1.00 increase (decrease) in the assumed initial public
offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share would increase (decrease) our pro forma as adjusted net
tangible book value per share after this offering and the
concurrent private placement by
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
and the dilution to new investors by
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
assuming the number of shares offered by us, as set forth on the
cover page of this prospectus, remains the same and after
deducting the estimated underwriting discounts and commissions
and estimated offering expenses payable by us.
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">33

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table presents, on a pro forma as adjusted basis,
as of March&nbsp;31, 2006, the differences among the number of
shares of common stock purchased from us, the total
consideration paid or exchanged and the average price per share
paid by existing stockholders and by new investors purchasing
shares of our common stock in this offering and the concurrent
private placement before deducting the estimated underwriting
discounts and commissions and estimated offering expenses
payable by us. The table assumes an initial public offering
price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, as specified above, and deducts the estimated
underwriting discounts and commissions and estimated offering
expenses payable by us:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="41%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Shares Purchased</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Total Consideration</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Average</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Price per</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percent</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amount</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percent</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>(In thousands, except share and per share data)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Existing stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    New investors</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The foregoing table and calculations assume no exercise of any
options and exclude:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock available for issuance under our 1996 Stock
    Option Plan,
    including &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock issuable upon exercise of outstanding stock
    options as
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006 at a weighted average exercise price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share; and</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock initially available for issuance under our 2006
    Long-Term Stock Incentive Plan.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">34

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='108'></A>
</DIV>

<!-- link1 "SELECTED FINANCIAL DATA" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>SELECTED FINANCIAL DATA</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should read the following selected financial data together
with the discussion under &#147;Management&#146;s Discussion and
Analysis of Financial Condition and Results of Operations&#148;
and our financial statements and the related notes included
elsewhere in this prospectus.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We derived the statement of operations data for each of the
three years in the period ended March&nbsp;31, 2006 and the
balance sheet data as of March&nbsp;31, 2005 and March&nbsp;31,
2006 from our audited consolidated financial statements included
elsewhere in this prospectus. We derived the statement of
operations data for each of the two years in the period ended
March&nbsp;31, 2003 and the balance sheet data as of
March&nbsp;31, 2002, 2003 and 2004 from our audited consolidated
financial statements that are not included in this prospectus.
The historical results set forth below do not necessarily
indicate results expected for any future period.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">35

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>For the Year Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>(In thousands, except per share data)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Statement of Operations Data:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenues:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Software:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    QiNetix</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>17,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>29,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>39,474</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>49,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>62,422</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Vault 98</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>314</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total software</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,774</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39,474</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>49,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62,422</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,677</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33,031</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47,050</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Hardware, supplies and other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,397</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,848</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>82,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>109,472</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cost of revenues:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    QiNetix software</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,497</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,764</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Vault 98 software</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,095</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,231</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Hardware, supplies and other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total cost of revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,851</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,217</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,472</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,995</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross margin</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,997</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52,029</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,477</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sales and marketing</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,842</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,592</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,248</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51,326</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Research and development</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,867</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,153</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,239</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,301</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    General and administrative</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,291</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,332</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,275</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,752</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,396</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,390</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,623</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Goodwill impairment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(30,728</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16,759</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,772</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>325</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,952</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(22</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(60</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>631</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>297</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>346</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,262</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) before income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(30,119</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16,462</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,698</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>657</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,207</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax (expense) benefit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>232</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(174</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(451</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(29,887</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16,410</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,698</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,756</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less: accretion of preferred stock dividends</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,676</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss) attributable to common stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(35,548</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(22,071</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(17,374</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(5,178</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,095</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss) attributable to common stockholders per share:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.98</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.60</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.47</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.09</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.98</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.60</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.47</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.08</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Weighted average shares used in computing per share amounts:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,224</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,201</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,678</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,224</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,201</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,866</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="51%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>As of March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>(In thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Balance Sheet Data:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>27,704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7,611</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>22,958</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>24,795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>48,039</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Working capital</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,626</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,441</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,139</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,802</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,489</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41,779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72,568</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cumulative redeemable convertible preferred stock:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Series&nbsp;A through E, at liquidation value</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76,508</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>82,170</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>87,846</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>93,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>99,168</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total stockholders&#146; deficit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(53,554</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(75,561</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(75,910</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(81,010</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(73,664</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">36

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='109'></A>
</DIV>

<!-- link1 "MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>You should read the following discussion and analysis along
with our consolidated financial statements and the related notes
included elsewhere in this prospectus. Except for the historical
information contained herein, this discussion contains
forward-looking statements that involve risks and uncertainties.
Actual results could differ materially from those discussed
below; accordingly, investors should not place undue reliance
upon our forward-looking statements. See &#147;Risk
Factors&#148; and &#147;Forward-Looking Statements&#148; for a
discussion of these risks and uncertainties.</I>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Overview</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
CommVault is a leading provider of data management software
applications and related services in terms of product breadth
and functionality and market penetration. We develop, market and
sell a unified suite of data management software applications
under the QiNetix brand. QiNetix is specifically designed to
protect and manage data throughout its lifecycle in less time,
at lower cost and with fewer resources than alternative
solutions. We also provide our customers with a broad range of
highly effective professional services that are delivered by our
worldwide support and field operations.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>History and Background</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We began operations in 1988 as a development group within Bell
Labs and were later designated as an AT&#38;T Network Systems
strategic business unit. We were formed to develop automated
backup, archiving and recovery products for AT&#38;T&#146;s
internal use. These products were comprised of internally
developed software integrated with third party hardware. Our
business became a part of Lucent Technologies, which was created
by and later spun-off from AT&#38;T. Donaldson,
Lufkin&nbsp;&#38; Jenrette Merchant Banking and the Sprout Group
funded and completed a management buyout of our Company from
Lucent in May 1996. After the buyout, we continued to sell our
software products integrated with third party hardware,
primarily UNIX servers and optical and magnetic tape libraries.
These combined hardware and software products were marketed as
ABARS, or Automated Backup and Recovery Solution, through 1997,
at which time we renamed the products Vault 98.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In April 1998, our board of directors and a new management team
changed our strategic direction. We believed that the data
management software industry would shift from local,
server-attached environments to more complex and widely
distributed data networks. We believed that a broad suite of
data management software applications built upon a new
innovative architecture and a single underlying code base would
more easily and cost-effectively manage data in this complex
networked environment. We also believed that our competitors
would address this opportunity by adapting their legacy
platforms and by developing or acquiring new applications built
upon dissimilar underlying software architectures. We believed,
and continue to believe, that managing data with this type of
loosely integrated solution would be more difficult and costly
for the customer. We also recognized that our legacy Vault 98
technology was too limited to address the broader data
management market opportunity. This vision resulted in an almost
two-year development project that culminated in the introduction
of our Galaxy data protection software in February 2000. Galaxy
represented the first of our software applications built upon
our new architectural platform, and we now market it as one of
the applications in our QiNetix software suite. The introduction
of Galaxy also marked the beginning of the phasing out of both
our Vault 98 products and the sale of third party hardware. We
substantially completed the phase-out of our sales of Vault 98
products and third party hardware in September 2001.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have spent the past six years developing, enhancing and
introducing the following eight applications as part of our
QiNetix software suite built upon our unified architectural
design: QiNetix Galaxy Backup and Recovery (released in 2000),
QiNetix DataMigrator (released in 2002), QiNetix QuickRecovery
(released in 2002), QiNetix DataArchiver (released in 2003),
QiNetix StorageManager (released in 2003), QiNetix QNet
(released in 2003), QiNetix Data Classification (released in
2005) and QiNetix ContinuousDataReplicator. In addition to
QiNetix Galaxy, the subsequent release of our other
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">37

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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
QiNetix software has substantially increased our addressable
market. As of March&nbsp;31, 2006, we had licensed our software
applications to over 3,700 registered customers.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We derive the majority of our software revenue from our data
protection software applications, which primarily include Galaxy
Backup and Recovery. Sales of our data protection software
applications represented approximately 90% of our total software
revenue for the year ended March&nbsp;31, 2006. In addition, we
derive substantially all of our services revenue from customer
and technical support associated with our data protection
software applications. We anticipate that we will continue to
derive a substantial majority of our software and services
revenue from our data protection software applications for the
foreseeable future.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Given the nature of the industry in which we operate, our
software applications are subject to obsolescence. We
continually develop and introduce updates to our existing
software applications in order to keep pace with technological
developments, evolving industry standards, changing customer
requirements and competitive software applications that may
render our existing software applications obsolete. For each of
our software applications, we provide full support for the
current generally available release and one prior release. When
we declare a product release obsolete, a customer notice is
delivered announcing continuation of full product support for
the first six months. We provide an additional six months of
limited product support in which we provide existing workarounds
or fixes only, which do not require additional development
activity. We do not have existing plans to make any of our
software products permanently obsolete.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Sources of Revenues</I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We derive the majority of our revenues from sales of licenses of
our software applications. We do not customize our software for
a specific end user customer. We sell our software applications
to end user customers both directly through our sales force and
indirectly through our global network of value-added reseller
partners, systems integrators, corporate resellers and original
equipment manufacturers. Our corporate resellers bundle or sell
our software applications together with their own products, and
our value-added resellers sell our software applications
independently. Our software revenue was 60% of our total
revenues for fiscal 2005 and 57% of our total revenues for
fiscal 2006. Software revenue generated through direct and
indirect distribution channels was approximately 38% and 62%,
respectively, of total software revenue in fiscal 2005, and was
approximately 32% and 68%, respectively, of total software
revenue in fiscal 2006. We have no current plans to focus future
growth on one distribution channel versus another. The failure
of our indirect distribution channels to effectively sell our
software applications could have a material adverse effect on
our revenues and results of operations.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have agreements with original equipment manufacturers that
market, sell and support our software applications and services
on a stand-alone basis and/or incorporate our software
applications into their own hardware products. An increasing
portion of our software revenue is related to such arrangements
with original equipment manufacturers that have no obligation to
sell our software applications. We currently have original
equipment manufacturer agreements with Dell and Hitachi Data
Systems. A material portion of our software revenue is generated
through these arrangements, and we expect this contribution to
grow in the future. Dell and Hitachi Data Systems also have no
obligation to recommend or offer our software applications
exclusively or at all, and they have no minimum sales
requirements and can terminate our relationship at any time.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In recent fiscal years, we have generated approximately
two-thirds of our software revenue from our existing customer
base and approximately one-third of our software revenue from
new customers. In addition, our total software revenue in any
particular period is, to a certain extent, dependent upon our
ability to generate revenues from large customer software deals.
We expect the number of software transactions over
$0.1&nbsp;million to increase in fiscal 2007, although the size
and timing of any particular software transaction is more
difficult to forecast. Such software transactions typically
represent approximately 35% of our total software revenue in any
given period.
</DIV>

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</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our services revenue is made up of fees from the delivery of
customer support and other professional services, which are
typically sold in connection with the sale of our software
applications. Customer support agreements provide technical
support and unspecified software updates on a
when-and-if-available basis for an annual fee based on licenses
purchased and the level of service subscribed. Other
professional services include consulting, assessment and design
services, implementation and post-deployment services and
training, all of which to date have predominantly been sold in
connection with the sale of software applications. Our services
revenue was 40% of our total revenues for fiscal 2005 and 43% of
our total revenues for fiscal 2006. The gross margin of our
services revenue was 69.8% for fiscal 2005 and 71.9% for fiscal
2006. Our services revenue has lower gross margins than our
software revenue. An increase in the percentage of total
revenues represented by services revenue would adversely affect
our overall gross margins.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Description of Costs and Expenses</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our cost of revenues is as follows:
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Cost of Software Revenue</I>, consists primarily of third
    party royalties and other costs such as media, manuals,
    translation and distribution costs;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Cost of Services Revenue</I>, consists primarily of salary
    and employee benefit costs in providing customer support and
    other professional services;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Cost of Hardware, Supplies and Other Revenue</I>, consists
    primarily of third party costs related to the procurement of
    products for resale to our customers. We substantially completed
    the phase out of our sales of third party hardware in September
    2001.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our operating expenses are as follows:
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Sales and Marketing</I>, consists primarily of salaries,
    commissions, employee benefits and other direct and indirect
    business expenses, including travel related expenses, sales
    promotion expenses, public relations expenses and costs for
    marketing materials and other marketing events (such as trade
    shows and advertising);</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Research and Development</I>, which is primarily the expense
    of developing new software applications and modifying existing
    software applications, consists principally of salaries and
    benefits for research and development personnel and related
    expenses; contract labor expense and consulting fees as well as
    other expenses associated with the design, certification and
    testing of our software applications; and legal costs associated
    with the patent registration of such software applications;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>General and Administrative</I>, consists primarily of
    salaries and benefits for our executive, accounting, human
    resources, legal, information systems and other administrative
    personnel. Also included in this category are other general
    corporate expenses, such as outside legal and accounting
    services and insurance;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Depreciation and Amortization</I>, consists of depreciation
    expense primarily for computer equipment we use for information
    services and in our development and test labs.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We anticipate that each of the above categories of operating
expenses will increase in dollar amounts, but will decline as a
percentage of total revenues in the long-term.
</DIV>

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<B>Critical Accounting Policies</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In presenting our consolidated financial statements in
conformity with U.S.&nbsp;generally accepted accounting
principles, we are required to make estimates and judgments that
affect the amounts reported therein. Some of the estimates and
assumptions we are required to make relate to matters that are
inherently uncertain as they pertain to future events. We base
these estimates on historical experience and on various other
assumptions that we believe to be reasonable and appropriate.
Actual results may differ significantly from these estimates.
The following is a description of our accounting policies that
we believe
</DIV>

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require subjective and complex judgments, which could
potentially have a material effect on our reported financial
condition or results of operations.
</DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Revenue Recognition</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We recognize revenue in accordance with the provisions of
Statement of Position (&#147;SOP&#148;) 97-2, <I>Software
Revenue Recognition</I>, as amended by SOP&nbsp;98-4 and
SOP&nbsp;98-9, and related interpretations. Our revenue
recognition policy is based on complex rules that require us to
make significant judgments and estimates. In applying our
revenue recognition policy, we must determine which portions of
our revenue are recognized currently (generally software
revenue) and which portions must be deferred and recognized in
future periods (generally services revenue). We analyze various
factors including, but not limited to, the sales of undelivered
services when sold on a stand-alone basis, our pricing policies,
the credit-worthiness of our customers and resellers, accounts
receivable aging data and contractual terms and conditions in
helping us to make such judgments about revenue recognition.
Changes in judgment on any of these factors could materially
impact the timing and amount of revenue recognized in a given
period.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Currently we derive revenues from two primary sources, or
elements: software licenses and services. Services include
customer support, consulting, assessment and design services,
installation services and training. A typical sales arrangement
includes both of these elements.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For software arrangements involving multiple elements, we
recognize revenue using the residual method as described in
SOP&nbsp;98-9. Under the residual method, we allocate and defer
revenue for the undelivered elements based on relative fair
value and recognize the difference between the total arrangement
fee and the amount deferred for the undelivered elements as
revenue. The determination of fair value of the undelivered
elements in multiple element arrangements is based on the price
charged when such elements are sold separately, which is
commonly referred to as vendor-specific objective-evidence
(&#147;VSOE&#148;).
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Software licenses typically provide for the perpetual right to
use our software and are sold on a per-copy basis or as site
licenses. Site licenses give the customer the additional right
to deploy the software on a limited basis during a specified
term. We recognize software revenue through direct sales
channels upon receipt of a purchase order or other persuasive
evidence and when the other three basic revenue recognition
criteria are met as described in the revenue recognition section
in Note&nbsp;2 of our <I>&#147;Notes to Consolidated Financial
Statements.&#148; </I>We recognize software revenue through all
indirect sales channels on a sell-through model. A sell-through
model requires that we recognize revenue when the basic revenue
recognition criteria are met and these channels complete the
sale of our software products to the end user. Revenue from
software licenses sold through an original equipment
manufacturer partner is recognized upon the receipt of a royalty
report or purchase order from that original equipment
manufacturer partner.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Services revenue includes revenue from customer support and
other professional services. Customer support includes software
updates on a when-and-if-available basis, telephone support and
bug fixes or patches. Customer support revenue is recognized
ratably over the term of the customer support agreement, which
is typically one year. To determine the price for the customer
support element when sold separately, we primarily use
historical renewal rates and, in certain cases, we use stated
renewal rates. Historical renewal rates are supported by a
rolling <FONT style="white-space: nowrap">12-month</FONT> VSOE
analysis in which we segregate our customer support renewal
contracts into different classes based on specific criteria
including, but not limited to, dollar amount of software
purchased, level of customer support being provided and
distribution channel. The purpose of such an analysis is to
determine if the customer support element that is deferred at
the time of a software sale is consistent with how it is sold on
a stand-alone renewal basis.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our other professional services include consulting, assessment
and design services, installation services and training. Other
professional services provided by us are not mandatory and can
also be performed by the customer or a third party. Our
consulting, assessment and design services and installation
services are generally evidenced by a signed Statement of Work,
which defines the specific scope of the services to be
performed. Revenues from consulting, assessment and design
services and installation services are based upon a daily or
weekly rate and are recognized when the services are completed.
Training includes courses
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">40

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taught by our instructors or third party contractors either at
one of our facilities or at the customer&#146;s site. Training
fees are recognized after the training course has been provided.
Based on our analysis of such other professional services
transactions sold on a stand-alone basis, we have concluded we
have established VSOE for such other professional services when
sold in connection with a multiple-element software arrangement.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In summary, we have analyzed all of the undelivered elements
included in our multiple-element arrangements and determined
that we have VSOE of fair value to allocate revenues to
services. Our analysis of the undelivered elements has provided
us with results that are consistent with the estimates and
assumptions used to determine the timing and amount of revenue
recognized in our multiple-element arrangements. Accordingly,
assuming all basic revenue recognition criteria are met,
software revenue is recognized upon delivery of the software
license using the residual method in accordance with
SOP&nbsp;98-9. We are not likely to materially change our
pricing and discounting practices in the future.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our arrangements do not generally include acceptance clauses.
However, if an arrangement does include an acceptance clause, we
defer the revenue for such arrangement and recognize it upon
acceptance. Acceptance occurs upon the earliest of receipt of a
written customer acceptance, waiver of customer acceptance or
expiration of the acceptance period.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have offered limited price protection under certain original
equipment manufacturer agreements. Any right to a future refund
from such price protection is entirely within our control. We
estimate that the likelihood of a future payout due to price
protection is remote.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the preparation of our fiscal 2006 financial statements,
we became aware of a material weakness related to our revenue
recognition procedures for certain multiple-element arrangements
accounted for under Statement of Position (&#147;SOP&#148;)
97-2, <I>Software Revenue Recognition,</I> as amended by
SOP&nbsp;98-4 and SOP&nbsp;98-9. During fiscal 2006, we began to
require a signed Statement of Work documenting the scope of our
other professional services offerings when included in certain
multiple-element arrangements. Persuasive evidence of an
arrangement does not exist for such multiple-element
arrangements until the Statement of Work covering the other
professional services is signed by both CommVault and the
end-user customer. During fiscal 2006, we recorded software and
services revenue of approximately $2.5&nbsp;million and
$0.1&nbsp;million, respectively, related to certain
multiple-element arrangement transactions before a signed
Statement of Work covering the other professional services was
obtained. As a result, we recorded a reduction to revenue and a
corresponding increase to deferred revenue of approximately
$2.6&nbsp;million in fiscal 2006 related to this material
weakness.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe we have remediated the material weakness by
establishing new procedures to identify all multiple-element
arrangements that contain subsequent agreements that must be
signed, even if the terms and conditions are the same as the
initial purchase order or other persuasive evidence.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See &#147;Risk Factors&nbsp;&#151; Risks Relating to Our
Business&nbsp;&#151; Our management and auditors have identified
a material weakness in the design and operation of our internal
controls as of March&nbsp;31, 2006 which, if not properly
remediated, could result in material misstatements in our
financial statements in future periods&#148; for more
information about this material weakness.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Stock-Based Compensation</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We account for our employee stock-based compensation in
accordance with the provisions of Accounting Principles Board
Opinion No.&nbsp;25, <I>Accounting for Stock Issued to
Employees,</I> and related interpretations, which require us to
recognize compensation expense for the excess of the fair market
value of the stock at the grant date over the exercise price, if
any, and to recognize that cost over the vesting period of the
option. In Note&nbsp;2 of our consolidated financial statements,
we have presented the pro forma effect on net income (loss)
attributable to common stockholders as if we had applied the
fair value recognition provisions of Statement of Financial
Accounting Standards (&#147;SFAS&#148;) No.&nbsp;123,
<I>Share-Based Payment.</I> We will adopt SFAS&nbsp;No.&nbsp;123
(revised 2004) <I>Share-Based Payment
</I>(&#147;SFAS&nbsp;No.&nbsp;123(R)&#148;), on April&nbsp;1,
2006 using the modified prospective approach in which the pro
forma disclosures will no longer
</DIV>

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be an alternative to financial statement recognition. The
adoption of SFAS&nbsp;No.&nbsp;123(R) is more fully described
below in &#147;Recent Accounting Pronouncements.&#148;
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table presents the exercise price and fair market
value per share for grants issued during the twelve months
ending March&nbsp;31, 2006:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="35%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Retrospective Fair</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Options</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Value per</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD align="left" nowrap><B>Grant Date</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Granted</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercise Price</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Common Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Intrinsic Value</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    May&nbsp;5, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>719,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3.46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1.21</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    July&nbsp;29, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>922,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.83</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    September&nbsp;19, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,600,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.59</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.24</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    November&nbsp;3, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>749,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.82</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    January&nbsp;26, 2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>668,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.79</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    March&nbsp;2, 2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>327,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.37</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The exercise prices for options granted were set by our board of
directors based upon our internal valuation model. Our internal
valuation model used a consistent formula based on
<FONT style="white-space: nowrap">12-month</FONT> projected
revenues in periods where we were not profitable and
alternatively <FONT style="white-space: nowrap">12-month</FONT>
projected earnings when we started to achieve profitability on a
regular basis. Our internal valuation was based on multiples
(either revenue or earnings) of a comparable group of publicly
traded companies in our market sector. In connection with the
preparation of the financial statements for this offering, we
performed a retrospective determination of fair value of our
common stock underlying stock option grants since
January&nbsp;1, 2005 based upon valuations performed by an
unrelated valuation specialist. The retrospective determination
of fair value of our common stock utilized the probability
weighted expected returns (&#147;PWER&#148;) method described in
the AICPA Technical Practice Aid, <I>Valuation of
Privately-Held-Company Equity Securities Issued as Compensation
</I>(&#147;Practice Aid&#148;).
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the PWER method, the value of our common stock is
estimated based upon an analysis of future values for the
enterprise assuming various future outcomes. In our situation,
the future outcomes included two scenarios: (i)&nbsp;we become a
public company (&#147;public company scenario&#148;) and;
(ii)&nbsp;we remain a private company (&#147;remains private
scenario&#148;). We used a low probability assumption for our
January 2005 grants and this percentage increased as significant
milestones were achieved and as discussions with our investment
bankers increased as we prepared for an initial public offering
process. An increase in the probability assessment for an
initial public offering increases the value ascribed to our
common stock.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the &#147;public company&#148; scenario, fair value per
common share was calculated using our expected pre-initial
public offering valuation and a risk-adjusted discount rate
based on the estimated timing of our potential initial public
offering. In general, the closer a company gets to an initial
public offering, the higher the probability assessment weighting
is for the &#147;public company&#148; scenario.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Determining the fair value of the common stock of a private
enterprise requires complex and subjective judgments. As such,
under the &#147;remains private&#148; scenario, our
retrospective estimates of enterprise value were based upon a
combination of the income approach and the market approach.
Under the income approach, our enterprise value was based on the
present value of our forecasted operating results. The
assumptions underlying the estimates are consistent with the
business plan used by our management. A discount rate ranging
from 20% to 25% was used based on the inherent risk of an
investment in CommVault. Under the market approach, our
estimated enterprise value was developed based revenue multiples
of comparable companies in terms of business operations, size,
stage of development, prospects for growth and risk. The fair
value of our common stock under the &#147;remains private&#148;
scenario was determined by reducing the total estimated
&#147;remains private&#148; enterprise value by the liquidation
preferences of our Series&nbsp;A through E cumulative redeemable
convertible preferred stock and the conversion preferences of
the Series&nbsp;AA, BB and CC convertible preferred stock as
well as a discount for lack of marketability assuming we remain
a private company.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">42

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<P><HR noshade><P>
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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The increase in the fair value of our common stock for financial
reporting purposes during fiscal 2006 principally reflected a
significant increase in our probability weighting for the
initial public offering scenario and increases resulting from
achieving revenue and earnings growth and generating consistent
cash flows from our operations.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The reassessed fair value of our common stock underlying 719,500
options granted to employees on May&nbsp;5, 2005 was determined
to be $3.46&nbsp;per share. The increase in fair value as
compared to the January&nbsp;27, 2005 value was primarily due to
the following:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    For the three months ended March&nbsp;31, 2005, we had the most
    profitable quarter in our history, generating earnings of
    approximately $1.6&nbsp;million;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We achieved our first fiscal year of profitability for the year
    ended March&nbsp;31, 2005;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We entered into an original equipment manufacturer arrangement
    with Hitachi Data Systems;&nbsp;and</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The possibility of an initial public offering remained
    relatively low and a probability estimate of 30% was assigned
    under the PWER method as a result of the significant milestones
    to be achieved.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The reassessed fair value of our common stock underlying 922,750
options granted to employees on July&nbsp;29, 2005 was
determined to be $4.18&nbsp;per share. The increase in fair
value as compared to the May&nbsp;5, 2005 value was primarily
due to the following:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    For the three months ended June&nbsp;30, 2005, revenues and
    earnings exceeded budget;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We increased our earnings forecast for the remainder of fiscal
    2006;&nbsp;and</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We increased the probability estimate for the initial public
    offering scenario under the PWER method to 40% as a result of
    our revenues and earnings exceeding budget.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The reassessed fair value of our common stock underlying
1,600,000 options granted to employees on September&nbsp;19,
2005 was determined to be $4.59&nbsp;per share. On
September&nbsp;19, 2005, our compensation committee awarded
options to several key executives. The underlying assumptions
that were in place as of the July&nbsp;29, 2005 grant date were
still in place on September&nbsp;19, 2005, except we increased
the probability estimate for the initial public offering
scenario under the PWER method to 50% as a result of moving
closer to a potential initial public offering and anticipating a
profitable quarter ending September&nbsp;30, 2005.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The reassessed fair value of our common stock underlying 749,000
options granted to employees on November&nbsp;3, 2005 was
determined to be $5.17&nbsp;per share. The increase in fair
value as compared to the September&nbsp;19, 2005 value was
primarily due to the following:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    For the three and six months ended September&nbsp;30, 2005,
    earnings exceeded our original budget and revised forecasts;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the six months ended September&nbsp;30, 2005, we started to
    achieve substantial revenue growth from our original equipment
    manufacturer arrangements with Dell and Hitachi Data
    Systems;&nbsp;and</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We increased the probability estimate for the initial public
    offering scenario under the PWER method to 60% as a result of
    our earnings exceeding forecast and the substantial revenue
    growth we achieved from our original equipment manufacturer
    agreements.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The reassessed fair value of our common stock underlying 668,700
options granted to employees on January&nbsp;26, 2006 was
determined to be $5.54&nbsp;per share. The increase in fair
value as compared to the November&nbsp;3, 2005 value was
primarily due to the following:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    On January&nbsp;10, 2006, we initiated the process of an initial
    public offering when we held an organizational meeting; as a
    result, we increased the initial public offering scenario to 65%
    under the PWER method;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We achieved consecutive quarters of profitability for the first
    time;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">43
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    For the three and nine months ended December&nbsp;31, 2005,
    earnings exceeded our original budget and revised
    forecasts;&nbsp;and</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We continued to generate cash flows from operations
    significantly exceeding budgeted, revised forecast and prior
    year amounts.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The reassessed fair value of our common stock underlying 327,250
options granted to employees on March&nbsp;2, 2006 was
determined to be $6.42&nbsp;per share. On March&nbsp;2, 2006,
our compensation committee awarded options to certain strategic
new hires. The underlying assumptions that were in place as of
the January&nbsp;26, 2006 grant date were still in place on
March&nbsp;2, 2006, except that we increased the probability
estimate for the initial public offering scenario under the PWER
method to 90% as a result of the imminence of our potential
initial public offering and anticipating our fiscal 2006
earnings would exceed forecast and budget amounts.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We recorded approximately $9.2&nbsp;million of deferred
stock-based compensation and recognized compensation expense of
approximately $1.1&nbsp;million during fiscal 2006 related to
stock options that were granted with an exercise price that was
below the fair value of our common stock on the date of grant.
The deferred compensation for these options is being recognized
ratably over the four-year vesting period.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on an estimated initial public offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, the intrinsic value of the options outstanding as of
March&nbsp;31, 2006, was
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million, of
which $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
related to vested options and
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million related
to unvested options.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Accounting for Income Taxes</I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As part of the process of preparing our financial statements, we
are required to estimate our income taxes in each of the
jurisdictions in which we operate. We record this amount as a
provision or benefit for taxes in accordance with
SFAS&nbsp;No.&nbsp;109, <I>Accounting for Income Taxes.</I> This
process involves estimating our actual current tax exposure,
including assessing the risks associated with tax audits, and
assessing temporary differences resulting from different
treatment of items for tax and accounting purposes. These
differences result in deferred tax assets and liabilities. As of
March&nbsp;31, 2006, we had deferred tax assets of approximately
$54.2&nbsp;million, which were primarily related to federal,
state and foreign net operating loss carryforwards and federal
and state research tax credit carryforwards. We assess the
likelihood that our deferred tax assets will be recovered from
future taxable income and, to the extent that we believe
recovery is not likely, we establish a valuation allowance. As
of March&nbsp;31, 2006, we maintained a valuation allowance
equal to the $54.2&nbsp;million of deferred tax assets as there
is not sufficient evidence to enable us to conclude that it is
more likely than not that the deferred tax assets will be
realized. Even though we reported net income in fiscal 2006, we
have incurred $0.5&nbsp;million in cumulative losses over the
prior three fiscal years and we have incurred $16.9 million in
cumulative losses over the prior four fiscal years. In addition,
we have an accumulated deficit of approximately
$165.1&nbsp;million reported on our consolidated balance sheet
as of March&nbsp;31, 2006. If our actual results differ from our
estimates, our provision for income taxes could be materially
impacted.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Software Development Costs</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Research and development expenditures are charged to operations
as incurred. SFAS&nbsp;No.&nbsp;86, <I>Accounting for the Costs
of Computer Software to Be Sold, Leased or Otherwise
Marketed,</I> requires capitalization of certain software
development costs subsequent to the establishment of
technological feasibility. Based on our software development
process, technological feasibility is established upon
completion of a working model, which also requires certification
and extensive testing. Costs incurred by us between completion
of the working model and the point at which the product is ready
for general release historically have been immaterial.
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">44
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Results of Operations</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth each of our sources of revenues
and costs of revenues for the specified periods as a percentage
of our total revenues for those periods (due to rounding,
numbers in the columns may not sum to totals):
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="68%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>For the Year Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenues:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Software</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>64</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>60</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cost of revenues:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Software</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total cost of revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross margin</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>85</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>86</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>86</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Fiscal year ended March&nbsp;31, 2006 compared to fiscal
    year ended March&nbsp;31, 2005</I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Revenues</I></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Total revenues increased $26.8&nbsp;million, or 32%, from
$82.6&nbsp;million in fiscal 2005 to $109.5&nbsp;million in
fiscal 2006.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Software Revenue.</I> Software revenue increased
$12.8&nbsp;million, or 26%, from $49.6&nbsp;million in fiscal
2005 to $62.4&nbsp;million in fiscal 2006. Software revenue
represented 60% of our total revenues in fiscal 2005 and 57% of
our total revenues in fiscal 2006. The increase in software
revenue was primarily the result of broader acceptance of our
software applications and increased revenue from our expanding
base of existing customers. Revenue through our original
equipment manufacturers contributed $8.5&nbsp;million to our
overall increase in software revenue primarily due to higher
revenue from our arrangement with Dell as well as revenue
generated from an original equipment manufacturer arrangement we
entered into with Hitachi Data Systems in March 2005.
Furthermore, revenue through our resellers and our direct sales
force contributed $3.6&nbsp;million and $0.7&nbsp;million,
respectively, to our overall increase in software revenue.
Software revenue transactions greater than $0.1&nbsp;million
contributed approximately $3.8&nbsp;million to our overall
increase in software revenue.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Services Revenue.</I> Services revenue increased
$14.0&nbsp;million, or 42%, from $33.0&nbsp;million in fiscal
2005 to $47.1&nbsp;million in fiscal 2006. Services revenue
represented 40% of our total revenues in fiscal 2005 and 43% of
our total revenues in fiscal 2006. The increase in services
revenue was primarily due to a $12.1&nbsp;million increase in
revenue from customer support agreements as a result of sales of
software to new customers and renewal agreements from our
installed software base.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Cost of Revenues</I></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Total cost of revenues increased $3.5&nbsp;million, or 31%, from
$11.5&nbsp;million in fiscal 2005 to $15.0&nbsp;million in
fiscal 2006. Total cost of revenues represented 14% of our total
revenues in both fiscal 2005 and fiscal 2006.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Cost of Software Revenue.</I> Cost of software revenue
increased $0.3&nbsp;million, or 18%, from $1.5&nbsp;million in
fiscal 2005 to $1.8&nbsp;million in fiscal 2006. Cost of
software revenue represented 3% of our total software revenue in
both fiscal 2005 and fiscal 2006. The increase in cost of
software revenue was primarily the result of higher third party
royalty costs associated with higher software revenue.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">45

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Cost of Services Revenue.</I> Cost of services revenue
increased $3.3&nbsp;million, or 33%, from $10.0&nbsp;million in
fiscal 2005 to $13.2&nbsp;million in fiscal 2006. Cost of
services revenue represented 30% of our services revenue in
fiscal 2005 and 28% of our services revenue in fiscal 2006. The
increase in cost of services revenue was primarily the result of
higher employee compensation of $1.9&nbsp;million resulting from
higher headcount and increased sales.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Operating Expenses</I></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Sales and Marketing.</I> Sales and marketing expenses
increased $8.1&nbsp;million, or 19%, from $43.2&nbsp;million in
fiscal 2005 to $51.3&nbsp;million in fiscal 2006. The increase
was primarily due to a $3.5&nbsp;million increase in employee
compensation resulting from higher headcount, a
$2.0&nbsp;million increase in commission expense on higher
revenue levels and a $0.5&nbsp;million increase in stock-based
compensation resulting from the issuance of stock options in
fiscal 2006 with an exercise price below fair market value.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Research and Development.</I> Research and development
expenses increased $2.1&nbsp;million, or 12%, from
$17.2&nbsp;million in fiscal 2005 to $19.3&nbsp;million in
fiscal 2006. The increase was primarily due to $1.1&nbsp;million
of higher employee compensation resulting from higher headcount
and $0.3&nbsp;million of increased legal expenses primarily
associated with patent registration of our intellectual property.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>General and Administrative.</I> General and administrative
expenses increased $3.3&nbsp;million, or 37%, from
$9.0&nbsp;million in fiscal 2005 to $12.3&nbsp;million in fiscal
2006. The increase was primarily due to a $1.5&nbsp;million
increase in employee compensation resulting from higher
headcount, a $0.8&nbsp;million increase in stock-based
compensation resulting from both the issuance of stock options
in fiscal 2006 with an exercise price below fair market value
and the acceleration of the vesting period for certain stock
options and a $0.5&nbsp;million increase in recruiting costs.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Depreciation and Amortization.</I> Depreciation expense
increased $0.2&nbsp;million, or 17%, from $1.4&nbsp;million in
fiscal 2005 to $1.6&nbsp;million in fiscal 2006. This reflects
higher depreciation associated with increased capital
expenditures primarily for product development and other
computer-related equipment.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Interest Income</I></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest income increased $0.9&nbsp;million, from
$0.3&nbsp;million in fiscal 2005, to $1.3&nbsp;million in fiscal
2006. The increase was due to higher interest rates and higher
cash balances in our deposit accounts.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Income Tax (Expense) Benefit</I></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Income tax expense increased from $0.2&nbsp;million in fiscal
2005 to $0.5&nbsp;million in fiscal 2006 as a result of
alternative minimum taxes due to the U.S.&nbsp;federal
government as well as various state income taxes.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I>&nbsp;</I></B></TD>
    <TD>
    <B><I>Fiscal year ended March&nbsp;31, 2005 compared to fiscal
    year ended March&nbsp;31, 2004</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Revenues</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Total revenues increased $21.4&nbsp;million, or 35%, from
$61.2&nbsp;million in fiscal 2004 to $82.6&nbsp;million in
fiscal 2005.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Software Revenue.</I> Software revenue increased
$10.1&nbsp;million, or 26%, from $39.5&nbsp;million in fiscal
2004 to $49.6&nbsp;million in fiscal 2005. Software revenue
represented 64% of our total revenues in fiscal 2004 and 60% of
our total revenues in fiscal 2005. The increase in software
revenue was primarily the result of broader acceptance of our
software applications and increased revenue from our expanding
base of existing customers. Revenue through our direct sales
force and resellers contributed $4.7&nbsp;million and
$4.0&nbsp;million, respectively, to the total increase in
software revenue. Furthermore, revenue through our original
equipment manufacturers contributed $1.4&nbsp;million to the
total increase in software revenue primarily as a result of
entering into an original equipment manufacturer arrangement
with Dell. We anticipate that our revenue through original
equipment manufacturers will continue to grow as a percentage of
total revenues in the future. Software revenue transactions
greater than $0.1&nbsp;million contributed approximately
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">46

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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
$2.1&nbsp;million to our overall increase in software revenue.
Movements in foreign exchange rates accounted for
$0.9&nbsp;million of the $10.1&nbsp;million increase in software
revenue.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Services Revenue.</I> Services revenue increased
$11.3&nbsp;million, or 52%, from $21.8&nbsp;million in fiscal
2004 to $33.0&nbsp;million in fiscal 2005. Services revenue
represented 36% of our total revenues in fiscal 2004 and 40% of
our total revenues in fiscal 2005. Increased revenue from
customer support agreements contributed $8.9&nbsp;million to the
total increase in services revenue as a result of sales of
software to new customers and renewal agreements from our
installed software base. In addition, increased revenue from
other professional services contributed $2.4&nbsp;million to the
total increase in services revenue as a result of higher
software sales.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Cost of Revenues</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Total cost of revenues increased $2.3&nbsp;million, or 24%, from
$9.2&nbsp;million in fiscal 2004 to $11.5&nbsp;million in fiscal
2005. Total cost of revenues represented 15% of our total
revenues in fiscal 2004 and 14% of our total revenues in fiscal
2005.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Cost of Software Revenue.</I> Cost of software revenue
increased $0.3&nbsp;million, or 28%, from $1.2&nbsp;million in
fiscal 2004 to $1.5&nbsp;million in fiscal 2005. Cost of
software revenue represented 3% of our total software revenue in
both fiscal 2004 and fiscal 2005. The increase in cost of
software revenue was primarily the result of $0.2&nbsp;million
of higher third party royalty costs associated with higher
software revenue.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Cost of Services Revenue.</I> Cost of services revenue
increased $1.9&nbsp;million, or 24%, from $8.0&nbsp;million in
fiscal 2004 to $10.0&nbsp;million in fiscal 2005. Cost of
services revenue represented 37% of our services revenue in
fiscal 2004 and 30% of our services revenue in fiscal 2005. The
increase in cost of services revenue was primarily the result of
higher employee compensation of $1.7&nbsp;million resulting from
higher headcount and increased sales.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Operating Expenses</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Sales and Marketing.</I> Sales and marketing expenses
increased $5.7&nbsp;million, or 15%, from $37.6&nbsp;million in
fiscal 2004 to $43.2&nbsp;million in fiscal 2005. The increase
was primarily due to a $3.0&nbsp;million increase in employee
compensation resulting from higher headcount, a
$1.4&nbsp;million increase in commission expense on higher
revenue levels and a $0.9&nbsp;million increase in travel and
entertainment expenses. Movements in foreign exchange rates
accounted for $0.7&nbsp;million of the $5.7&nbsp;million
increase in sales and marketing expenses.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Research and Development.</I> Research and development
expenses increased $1.0&nbsp;million, or 6%, from
$16.2&nbsp;million in fiscal 2004 to $17.2&nbsp;million in
fiscal 2005. The increase was primarily due to higher employee
compensation expenses.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>General and Administrative.</I> General and administrative
expenses increased $0.4&nbsp;million, or 4%, from
$8.6&nbsp;million in fiscal 2004 to $9.0&nbsp;million in fiscal
2005. The increase primarily reflected $1.4&nbsp;million of
higher employee compensation partially offset by a decrease in
legal and accounting fees totaling $0.8&nbsp;million primarily
related to an offering that did not occur.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Depreciation and Amortization.</I> Depreciation expense
remained at $1.4&nbsp;million from fiscal 2004 to fiscal 2005.
This reflects higher depreciation associated with increased
capital expenditures primarily for product development and other
computer-related equipment, offset by certain fixed assets in
our development laboratory becoming fully depreciated.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Interest Income</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest income increased $0.2&nbsp;million from
$0.1&nbsp;million in fiscal 2004 to $0.3&nbsp;million in fiscal
2005. The increase was due to higher interest rates and higher
cash balances in our deposit accounts.
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">47

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I>Income Tax (Expense) Benefit</I></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Income tax expense increased from zero in fiscal 2004 to
approximately $0.2&nbsp;million in fiscal 2005 as a result of
alternative minimum taxes due to the U.S.&nbsp;federal
government as well as various state income taxes.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Liquidity and Capital Resources</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have financed our operations to date primarily through the
private placements of preferred equity securities and common
stock as described below and, to a much lesser extent, through
funds from operations. As of March&nbsp;31, 2006, we had
$48.0&nbsp;million of cash and cash equivalents. The cumulative
amount of preferred equity financing to date is
$141.3&nbsp;million, of which approximately $25.0&nbsp;million
was paid to Lucent in connection with the 1996 purchase of the
CommVault business. The remaining proceeds from all equity
financings to date have been used to provide working capital to
fund our growth, which includes the costs associated with
transitioning from the Vault 98 platform to QiNetix.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash provided by operating activities was $0.9&nbsp;million,
$3.8&nbsp;million and $25.9&nbsp;million in fiscal 2004, 2005
and 2006, respectively. In fiscal 2005 and 2006, cash generated
by operating activities was primarily due to net income adjusted
for the impact of noncash charges and an increase in deferred
services revenue. In fiscal 2004, cash generated by operating
activities was primarily the result of an increase in deferred
revenue offset by our net loss for that year.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash used in investing activities was $1.2&nbsp;million,
$1.9&nbsp;million and $2.8&nbsp;million in fiscal 2004, 2005 and
2006, respectively. Cash used in investing activities in each
period was due to purchases of property and equipment.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash provided by (used in) financing activities was
$15.4&nbsp;million in fiscal 2004, and minimal in both fiscal
2005 and fiscal 2006. In fiscal 2004, cash provided by financing
activities was primarily attributable to net proceeds from the
issuance of convertible preferred stock.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Working capital increased $0.3&nbsp;million from
$13.2&nbsp;million as of March&nbsp;31, 2004 to
$13.4&nbsp;million as of March&nbsp;31, 2005, primarily due to
cash generated as a result of $0.5&nbsp;million in net income
during fiscal 2005, a $2.8&nbsp;million increase in accounts
receivable as a result of higher sales and a $1.1&nbsp;million
decrease in accounts payable, partially offset by a
$3.4&nbsp;million increase in deferred revenue during the fiscal
year ended March&nbsp;31, 2005. Deferred revenue, which is a
current liability, primarily represents amounts paid by
customers for services in advance of those services being
performed by us and subsequently will be recognized as services
revenue when earned.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Working capital increased $10.7&nbsp;million from
$13.4&nbsp;million as of March&nbsp;31, 2005 to
$24.1&nbsp;million as of March&nbsp;31, 2006, primarily due a
$23.2&nbsp;million increase in cash and cash equivalents,
partially offset by a $10.5&nbsp;million increase in deferred
revenue and a $2.2&nbsp;million increase in accrued liabilities
during the fiscal year ended March&nbsp;31, 2006. The increase
in cash and cash equivalents is primarily due to higher net
income, stronger collection efforts of our accounts receivable
and the increase in deferred revenue.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We entered into a new $20&nbsp;million term loan with Silicon
Valley Bank pursuant to which we intend to borrow
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million on or
immediately prior to the closing date of this offering in
connection with the payments to the holders of our
Series&nbsp;A, B, C, D and E preferred stock. The term loan is
secured by substantially all of our assets. Borrowings under the
term loan bear interest at a rate equal to
<FONT style="white-space: nowrap">30-day</FONT> LIBOR plus 1.50%
with principal and interest to be repaid in quarterly
installments over a
<FONT style="white-space: nowrap">24-month</FONT> period. The
term loan requires us to maintain a &#147;quick ratio,&#148; as
defined in the term loan agreement, of at least 1.50 to 1. We
estimate the payments under this term loan will be
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
in fiscal 2007,
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
in fiscal 2008 and
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
in fiscal 2009. The term loan will mature in fiscal 2009.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the offering, all of our outstanding
preferred stock will convert
into &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock. A summary of our private placements of
preferred stock (and, in the
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
case of the Series&nbsp;A, B, C, D and E preferred stock, common
stock that we issued concurrently therewith) is set forth below:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="69%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Preferred</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2" align="left" nowrap><B>Date of Financing</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Stock Series</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amount</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(In millions)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    May 1996</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>30.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    July 1997</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>B</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    December 1997</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>C</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    October 1998</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>D</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    March 1999</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>E</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    April 2000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>AA</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    December 2000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>BB</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33.4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    February 2002</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>CC</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    September 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>CC</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>141.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, we issued approximately $0.7&nbsp;million of
Series&nbsp;D preferred stock to N. Robert Hammer, our Chairman,
President and Chief Executive Officer, in the form of stock in
lieu of cash compensation for his services as chief executive
officer for the period from December 1998 to December 2000. Such
stock compensation was expensed during the same period.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon the closing of the offering, in accordance with the terms
of each series of preferred stock as set forth in our
Certificate of Incorporation, our Series&nbsp;A, B, C, D and E
preferred stock will be converted
into &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our common stock and will also have the right to receive:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    $14.85&nbsp;per share, or $47.0&nbsp;million in the
    aggregate;&nbsp;and</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    accumulated and unpaid dividends of $1.788&nbsp;per share per
    year since the date the shares of preferred stock were issued,
    or
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in the aggregate, assuming that this offering closes
    on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2006.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We intend to use the net proceeds from the sale of shares by us
of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
(based on an offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, the midpoint of the estimated price range shown on the
cover of this prospectus), together with proceeds of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
from the concurrent private placement (based on an offering
price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share, the midpoint of the estimated price range shown on the
cover of this prospectus) and borrowings of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
under our new term loan, to pay
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
in satisfaction of amounts due on our Series&nbsp;A, B, C, D and
E preferred stock upon its conversion into common stock.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A $1.00 increase (decrease) in the assumed initial public
offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share would increase (decrease) the net proceeds to us from this
offering and the concurrent private placement by
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
and would decrease (increase) the amount of borrowings on the
closing date under our new term loan by
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
assuming the number of shares offered by us, as set forth on the
cover page of this prospectus, remains the same and after
deducting the estimated underwriting discounts and commissions
and estimated offering expenses payable by us.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The outstanding shares of Series&nbsp;AA, BB and CC preferred
stock will be converted into a total
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock, in accordance with the terms of such series of
preferred stock as set forth in our Certificate of Incorporation.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe that our existing cash, cash equivalents and
borrowings under our new term loan will be sufficient to meet
our anticipated cash needs for working capital and capital
expenditures for at least the next 12&nbsp;months. We cannot
assure you that this will be the case or that our assumptions
regarding revenues and expenses underlying this belief will be
accurate. We may seek additional funding through public or
private financings or other arrangements during this period.
Adequate funds may not be available when needed or may not be
available on terms favorable to us, or at all. If additional
funds are raised by issuing equity securities, dilution to
existing stockholders will result. If we raise additional funds
by
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">49

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
obtaining loans from third parties, the terms of those financing
arrangements may include negative covenants or other
restrictions on our business that could impair our operational
flexibility, and would also require us to fund additional
interest expense. If funding is insufficient at any time in the
future, we may be unable to develop or enhance our products or
services, take advantage of business opportunities or respond to
competitive pressures, any of which could have a material
adverse effect on our business, financial condition and results
of operations.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Summary Disclosures about Contractual Obligations and
Commercial Commitments</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our material capital commitments consist of obligations under
facilities and operating leases. We anticipate that we will
experience an increase in our capital expenditures and lease
commitments consistent with our anticipated growth in
operations, infrastructure and personnel and additional
resources devoted to building our brand name and marketing and
sales force.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We generally do not enter into binding purchase commitments. The
following table summarizes our existing obligations as of
March&nbsp;31, 2006 with regards to payments due under operating
leases and an equipment term loan (dollars in thousands):
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9.0pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="42%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 7.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="27" align="center" nowrap><B>Payments Due By March&nbsp;31,</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="27" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 7.0pt;">
    <TD align="left" nowrap><B>Contractual Obligations(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2007</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2008</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2009</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2010</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2011</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Thereafter</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating leases</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,293</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,784</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,392</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>891</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 3.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    In connection with this offering, we intend to enter into a new
    $20&nbsp;million term loan pursuant to which we intend to borrow
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    on or immediately prior to the closing date of this offering. We
    estimate the payments under this term loan will be
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in fiscal 2007,
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in fiscal 2008 and
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in fiscal 2009. The term loan will mature in fiscal 2009.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A $1.00 increase (decrease) in the assumed initial public
offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share would (decrease) increase our borrowings under our new
term loan on the closing date and would (decrease) increase the
payments under this term loan in fiscal 2007 by
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
in fiscal 2008 by
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
and in fiscal 2009 by
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
assuming the number of shares offered by us, as set forth on the
cover page of this prospectus, remains the same.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We offer a 90-day limited product warranty for our software. To
date, costs relating to this product warranty have not been
material.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Off-Balance Sheet Arrangements</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of March&nbsp;31, 2006, we had no off-balance sheet
arrangements.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Indemnifications</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our software licensing agreements contain certain provisions
that indemnify our customers from any claim, suit or proceeding
arising from alleged or actual intellectual property
infringement. These provisions continue in perpetuity along with
our software licensing agreements. We have never incurred a
liability relating to one of these indemnification provisions in
the past and we believe that the likelihood of any future payout
relating to these provisions is remote. Therefore, we have not
recorded a liability during any period related to these
indemnification provisions.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Recent Accounting Pronouncements</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In December 2004, the FASB issued SFAS&nbsp;No.&nbsp;123
(revised 2004), <I>Share-Based Payment
</I>(&#147;SFAS&nbsp;No.&nbsp;123(R)&#148;), which replaces
SFAS&nbsp;No.&nbsp;123 and supersedes APB Opinion No.&nbsp;25,
<I>Accounting for Stock Issued to Employees.</I>
SFAS&nbsp;No.&nbsp;123(R) addresses the accounting for
transactions in which an enterprise receives employee services
in exchange for (a)&nbsp;equity instruments of the enterprise or
(b)&nbsp;liabilities that are based on the fair value of the
enterprise&#146;s equity instruments or that may be settled by
the issuance of such equity instruments.
SFAS&nbsp;No.&nbsp;123(R) requires all share-based payments to
</DIV>

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employees, including grants of employee stock options and
restricted stock grants, to be recognized as a compensation cost
based on their fair values. The pro forma disclosures previously
permitted under SFAS&nbsp;No.&nbsp;123 no longer will be an
alternative to financial statement recognition. We will adopt
SFAS&nbsp;No.&nbsp;123(R) on April&nbsp;1, 2006 using the
modified prospective approach and expect that the adoption of
SFAS&nbsp;No.&nbsp;123(R) will have a material impact on our
consolidated results of operations, although it will not impact
our overall financial position. The future results will be
impacted by the number and value of additional stock option
grants subsequent to adoption and the rate of cancellation of
unvested grants. We estimate that we will record stock-based
compensation expense of approximately $5.4&nbsp;million in
fiscal 2007 and $5.1&nbsp;million in fiscal 2008 under
SFAS&nbsp;No.&nbsp;123(R) using the Black-Scholes option-pricing
method based on existing unvested options. Our stock-based
compensation expenses will increase when additional stock option
grants are awarded.
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</FONT></DIV>

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<B>Quantitative and Qualitative Disclosures About Market Risk</B>
</DIV>

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    <B><I>Interest Rate Risk</I></B></TD>
</TR>

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</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of March&nbsp;31, 2006, our cash and cash equivalents balance
consisted primarily of money market funds. Due to the short-term
nature of these investments, we are not subject to any material
interest rate risk on these balances.
</DIV>

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</FONT></DIV>

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<B>Foreign Currency Risk</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a global company, we face exposure to adverse movements in
foreign currency exchange rates. Our international sales are
generally denominated in foreign currencies, and this revenue
could be materially affected by currency fluctuations.
Approximately 29% of our sales were outside the United States in
fiscal 2006. Our primary exposures are to fluctuations in
exchange rates for the U.S.&nbsp;dollar versus the Euro and, to
a lesser extent, the Australian dollar, British pound sterling,
Canadian dollar and Chinese yuan. Changes in currency exchange
rates could adversely affect our reported revenues and require
us to reduce our prices to remain competitive in foreign
markets, which could also have a material adverse effect on our
results of operations. Historically, we have periodically
reviewed and revised the pricing of our products available to
our customers in foreign countries and we have not maintained
excess cash balances in foreign accounts. To date, we have not
hedged our exposure to changes in foreign currency exchange
rates and, as a result, could incur unanticipated gains or
losses.
</DIV>

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</FONT></DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We estimate that a 10% change in foreign exchange rates would
impact our reported operating profit by approximately
$1.4&nbsp;million annually. This sensitivity analysis disregards
the possibilities that rates can move in opposite directions and
that losses from one geographic area may be offset by gains from
another geographic area.
</DIV>

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</FONT></DIV>

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<A name='110'></A>
</DIV>

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<B>BUSINESS</B>
</DIV>

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<B>Company Overview</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
CommVault is a leading provider of data management software
applications and related services in terms of product breadth
and functionality and market penetration. We develop, market and
sell a unified suite of data management software applications
under the QiNetix (pronounced &#147;kinetics&#148;) brand.
QiNetix is specifically designed to protect and manage data
throughout its lifecycle in less time, at lower cost and with
fewer resources than alternative solutions while minimizing the
cost and complexity of managing that data. QiNetix provides our
customers with:
</DIV>

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    <TD width="95%"></TD>
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    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    high-performance data protection, including backup and recovery;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    disaster recovery of data;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    data migration and archiving;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    global availability of data;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    replication of data;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    creation and management of copies of stored data;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

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    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    storage resource discovery and usage tracking;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    data classification; and</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

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    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;</TD>
    <TD align="left">
    management and operational reports and troubleshooting tools.</TD>
</TR>

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</FONT></TD></TR>

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Our products and capabilities enable our customers to deploy
solutions for data protection, business continuance, corporate
compliance and centralized management and reporting. We also
provide our customers with a broad range of highly effective
professional services that are delivered by our worldwide
support and field operations.
</DIV>

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</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
QiNetix enables our customers to simply and cost-effectively
protect and manage their enterprise data throughout its
lifecycle, from data center to remote office, covering the
leading operating systems, relational databases and
applications. In addition to addressing today&#146;s data
management challenges, our customers can realize lower capital
costs through more efficient use of their enterprise-wide
storage infrastructure assets, including the automated movement
of data from higher cost to lower cost storage devices
throughout its lifecycle and through sharing and better
utilization of storage resources across the enterprise. QiNetix
can also provide our customers with reduced operating costs
through a variety of features, including fast application
deployment, reduced training time, lower cost of storage media
consumables, proactive monitoring and analysis, simplified
troubleshooting and lower administrative costs.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
QiNetix is built upon a new innovative architecture and a single
underlying code base that consists of:
</DIV>

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    <TD width="96%"></TD>
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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    an indexing engine that systematically identifies and organizes
    all data, users and devices accessible to our software products;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a cataloging engine that contains a global database describing
    the nature of all data, such as the users, applications and
    storage with which it is associated;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a policy engine that enables customers to set rules to automate
    the management of data;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a data movement engine that transports data using network
    communication protocols; and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a media management engine that controls and catalogs disk, tape
    and optical storage devices, as well as the data written to them.</TD>
</TR>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We refer to this single, unified code base underlying each of
our QiNetix applications as our Common Technology Engine. Each
data management software application within our QiNetix suite is
designed to be
<FONT style="white-space: nowrap">best-in</FONT>-class and is
fully integrated into our Common Technology Engine. Our unified
architectural design is unique and differentiates our products
from those of our competitors, some of whom offer similar
applications built upon disparate underlying software
architectures, which we refer to as point products. We believe
the disparate underlying software architectures of their
products inhibit our competitors&#146; ability to match the
seamless management, interoperability and scalability of our
internally developed unified suite and common user interface.
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have established a worldwide multi-channel distribution
network to sell our software and services to large global
enterprises, small and medium sized businesses and government
agencies, both directly through our sales force and indirectly
through our global network of value-added reseller partners,
systems integrators, corporate resellers and original equipment
manufacturers. Our original equipment manufacturer partners
include Dell, Hitachi Data Systems and Incentra Solutions, Inc.
As of March&nbsp;31, 2006, we had licensed our data management
software to more than 3,700 registered customers.
</DIV>

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</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
CommVault&#146;s executive management team has led the growth of
our business, including the development and release of all our
QiNetix software since its introduction in February 2000. Under
the guidance of our management team, we have sustained technical
leadership with the introduction of eight new data management
applications and have garnered numerous industry awards and
recognition for our innovative solutions.
</DIV>

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<B>Industry Background</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The driving forces for the growth of the data management
software industry are the rapid growth of data and the need to
protect and manage that data.
</DIV>

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</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Data is widely considered to be one of an organization&#146;s
most valued assets. The increasing reliance on critical
enterprise software applications such as
<FONT style="white-space: nowrap">e-mail,</FONT> relational
databases, enterprise resource planning, customer relationship
management and workgroup collaboration tools is resulting in the
rapid growth of data across all enterprises. New government
regulations, such as those issued under the Sarbanes-Oxley Act,
the Health Insurance Portability and Accountability
Act&nbsp;(HIPAA) and the Basel Committee on Banking Supervision
(Basel&nbsp;II), as well as company policies requiring data
preservation, are expanding the proportion of data that must be
archived and easily accessible for future use. In addition,
ensuring the security and integrity of the data has become a
critical task as regulatory compliance and corporate governance
objectives affecting many organizations mandate the creation of
multiple copies of data with longer and more complex retention
requirements. We believe that worldwide disk storage systems
exceeded 1.2&nbsp;million terabytes in 2004 and are forecasted
to grow to nearly 10.6&nbsp;million terabytes in 2009,
representing an estimated annual growth rate of approximately
52%.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to rapid data growth, data storage has transitioned
from being server-attached to becoming widely distributed across
local and global networked storage systems. Data previously
stored on primary disk and backed up on tape is increasingly
being backed up, managed and stored on a broader array of
storage tiers ranging from high-cost, high-performance disk
systems to lower-cost mid-range and low-end disk systems to tape
libraries. This transition has been driven by the growth of
data, the pervasive use of distributed critical enterprise
software applications, the decrease in disk cost and the demand
for 24/7 business continuity.
</DIV>

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The recent innovations in storage and networking technologies,
coupled with the rapid growth of data, have caused information
technology managers to redesign their data and storage
infrastructures to deliver greater efficiency, broaden access to
data and reduce costs. The result has been the wide adoption of
larger and more complex networked data and storage solutions,
such as storage area networks (SANs) and network-attached
storage (NAS). In addition to those trends, regulatory
compliance and corporate governance objectives are creating
larger data archives having much longer retention periods that
require information technology managers of organizations
affected by these objectives to ensure the integrity, security
and availability of data.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe that these trends are increasing the demand for
software applications that can simplify data management, provide
secure and reliable access to all data across a broad spectrum
of tiered storage and computing systems and seamlessly scale to
accommodate growth, while reducing the total cost of ownership
to the customer. We believe that the storage management software
market will grow from $5.6&nbsp;billion in 2004 to
$9.4&nbsp;billion in 2009.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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<B>Limitations of Competing Data Management Software Products
and Solutions</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Many of our competitors&#146; products were initially designed
to manage smaller quantities of data in server-attached storage
environments. As a result, we believe they are not as effective
managing data in today&#146;s larger and more complex networked
(SAN and NAS) environments. Given these limitations, we believe
our competitors&#146; products cannot be scaled as easily as
ours and are more costly to implement and manage than our
solutions.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Most data management software solutions are comprised of many
individual point products built upon separate underlying
architectures. This often requires the user to administer each
individual point product using a separate, different user
interface, and unique set of dedicated storage resources, such
as disk and tape drives. The result can be a costly, difficult
to manage environment that requires extensive administrative
cross-training, offers little insight into storage resource use
across the global enterprise, provides modest operational
reporting and commands greater storage use. As a result, we
believe competing data management software products do not fully
address the following key requirements in today&#146;s data
management environment:
</DIV>

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    <TD width="1%"></TD>
    <TD width="96%"></TD>
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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Effective Management of Widely Distributed and Networked
    Data.</I> Most existing data management software products were
    designed to manage local server-attached storage environments,
    and do not as easily or effectively manage data in today&#146;s
    heterogeneous, widely distributed and tiered storage
    architectures.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Ease of Data Management Application Integration.</I> A number
    of vendors offering point products have attempted to address
    distributed and networked storage management requirements, but
    these disparate products are not easily integrated with other
    data management applications and can result in additional costs
    to the user, including storage infrastructure costs and higher
    implementation, training, administration, maintenance and
    support costs.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Global Scalability.</I> Data management solutions consisting
    of combinations of point products initially designed to address
    server-attached storage environments have underlying software
    architectures that are both cumbersome to deploy and more
    difficult to scale across networked storage and geographic
    boundaries.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Centralized Data Management.</I> Most data management
    solutions consisting of combinations of point products lack the
    ability to comprehensively manage all data management
    applications across the global enterprise from a single, unified
    point of control.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Ability to Effectively Prioritize Stored Data Across
    Applications.</I> Several existing solutions include
    combinations of point products that attempt to manage data based
    on its assigned priority in a tiered storage environment.
    However, these offerings lack a specifically designed tiered
    storage management architecture that can seamlessly integrate
    the classification, indexing and cataloging of data with
    features that enable user-defined policies and automated
    migration of data across a tiered storage environment.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Lower Total Cost of Ownership.</I> The inherent limitations
    of many data management software products can result in
    increased capital and operating costs. These costs are related
    to the increased use of storage hardware and media, additional
    infrastructure requirements (such as servers and storage network
    devices) and higher personnel costs, including implementation,
    training, administration, maintenance and support.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe that there is and will continue to be significant
demand for a unified, comprehensive and scalable suite of data
management software applications specifically designed to
centrally and cost-effectively manage increasingly complex
enterprise data environments.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Our Solution</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We provide our customers with a unified, comprehensive and
scalable suite of data management software applications that are
fully integrated into our Common Technology Engine. Our software
enables
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
centralized protection and management of globally distributed
data while reducing the total cost of managing, moving, storing
and assuring secure access to that data from a single
browser-based interface. QiNetix provides our customers with
high-performance data protection, including backup and recovery,
disaster recovery of data, data migration and archiving, global
data availability, replication of data, creation and management
of copies of stored data, storage resource discovery and usage
tracking, data classification, management and operational
reports and troubleshooting tools.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
QiNetix fully interoperates with a wide variety of operating
systems, applications, network devices, protocols, storage
arrays, storage formats and tiered storage infrastructures,
providing our customers with the flexibility to purchase and
deploy a combination of hardware and software from different
vendors. As a result, our customers can purchase and use the
optimal hardware and software for their needs, rather than being
restricted to the offerings of a single vendor. Key benefits of
our software and related services include:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Dynamic Management of Widely Distributed and Networked
    Data.</I> QiNetix is specifically designed to optimize
    management of data on tiered storage and widely distributed data
    environments, including SAN and NAS. Our architecture enables
    the creation of policies that automate the movement of data
    based on business goals for availability, recoverability and
    disaster tolerance. User-defined policies determine the storage
    media on which data should reside based on its assigned value.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Unified Suite of Applications Built upon a Common Technology
    Engine.</I> All QiNetix applications share common components of
    our underlying software code, which drives significant cost
    savings versus the point products or loosely integrated
    solutions offered by our competitors. In addition, we believe
    that each of the individual data management applications in our
    QiNetix suite delivers superior performance, functionality and
    total cost of ownership benefits. These solutions can be
    delivered to our customers either as part of our unified suite
    or as stand-alone applications. We also believe that our
    architecture will allow us to more rapidly introduce new
    applications that will enable us to expand beyond our current
    addressable market.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Global Scalability and Seamless Centralized Data
    Management.</I> Our software is highly scalable, enabling our
    customers to keep pace with the growth of data and technologies
    deployed in their enterprises. We use the same underlying
    software architecture for large global enterprise, small and
    medium sized business and government agency deployments. We
    offer a centralized, browser-based management console from which
    policies automatically move data according to users&#146; needs
    for data access, availability and cost objectives. With QiNetix,
    our customers can automate the discovery, management and
    monitoring of enterprise-wide storage resources and applications.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <FONT style="white-space: nowrap"><I>State-of</FONT>-the-Art
    Customer Support Services.</I> We offer 24/7 global technical
    support. Our support operations center at our Oceanport, New
    Jersey headquarters is complemented by local support resources,
    including centers in Europe, Australia, India and China. Our
    worldwide customer support organization provides comprehensive
    local and remote customer care to effectively address issues in
    today&#146;s complex storage networking infrastructures. Our
    customer support process includes the expertise of product
    development, field and customer support engineers. In addition,
    we incorporate into our software many self-diagnostic and
    troubleshooting capabilities and provide automated web-based
    support capabilities to our customers. Furthermore, we have
    implemented a voice-over-IP telephony system to tie our
    worldwide support centers together with an integrated call
    center messaging and trouble ticket management system.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Superior Professional Services.</I> We are committed to
    providing high-value, superior professional services to our
    customers. Our Global Professional Services group provides
    complete business solutions that complement our software sales
    and improve the overall user experience. Our
    <FONT style="white-space: nowrap">end-to</FONT>-end services
    include assessment and design, implementation, post-deployment
    and training services. These services help our customers improve
    the protection, disaster recovery, availability, security and
    regulatory compliance of their global data assets while
    minimizing the overall cost and complexity of their data
    infrastructures.</TD>
</TR>

</TABLE>

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Lower Total Cost of Ownership.</I> Our software solutions
    built on our QiNetix architecture enable our customers to
    realize compelling total cost of ownership benefits, including
    reduced capital costs, operating expenses and support costs.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Our Strategy</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our objective is to enhance our position as a leading supplier
of data management software and services. Our key strategic
initiatives are to continue:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Extending our Technology Leadership, Product Breadth and
    Addressable Markets.</I> We intend to use our technology base,
    internal development capabilities and strategic industry
    relationships to extend our technology leadership in providing
    software to manage globally distributed data. Specifically, we
    plan to continuously enhance existing software applications and
    introduce new data management software applications that address
    emerging data and storage management trends, incorporate
    advances in hardware and software technologies as they become
    available and take advantage of market opportunities.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Enhancing and Expanding our Customer Support and Other
    Professional Services Offerings.</I> We plan to continue
    investing in the people, partners, technologies, software and
    services enhancements necessary to provide our customers with
    the industry&#146;s most comprehensive product support and
    professional services. We intend to continue creating and
    delivering innovative services offerings and product
    enhancements that result in faster deployment of our software,
    simpler system administration and rapid resolution of problems.
    We also intend to enhance our web-based support initiatives and
    broaden our global support infrastructure.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Expanding Distribution Channels and Geographic Markets
    Served.</I> We plan to continue investing in the expansion of
    our distribution channels, both geographically and across all
    enterprises. We intend to maintain and grow our direct sales
    force as well as our distribution relationships, including those
    with value-added resellers, corporate resellers, systems
    integrators and original equipment manufacturers. We have made
    significant investments to extend our global reach, such as
    establishing sales and support offices in China and a
    development and support office in India. We intend to continue
    making investments to extend our global reach and increase our
    distribution throughout the Americas, Europe, Australia and Asia.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Broadening and Developing Strategic Relationships.</I> We
    plan to broaden our distribution and technology partnerships to
    increase existing product sales and introduce new applications.
    Our unified platform simplifies integration with our
    partners&#146; solutions and the implementation of unique
    functionality to meet their needs. We also intend to broaden our
    existing relationships and develop new relationships with
    leading technology partners, including software application and
    infrastructure hardware vendors. We believe that these types of
    strategic relationships will allow us to package and distribute
    our data management software to our partners&#146; customers,
    increase sales of our software through joint-selling and
    marketing arrangements and increase our insight into future
    industry trends.</TD>
</TR>

</TABLE>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Products</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our QiNetix suite is comprised of eight distinct data management
software applications, all of which share our Common Technology
Engine. Each application (other than Data Classification and
QNet) can be used individually or in combination with other
applications of our unified suite. The following table
summarizes the components of our unified QiNetix suite:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="45%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="52%">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" nowrap><B>QiNetix Suite of Data Management Applications</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Functionality</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &#149;&nbsp;<B>Galaxy Backup and Recovery</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    High-performance backup and restoration of enterprise data</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &#149;&nbsp;<B>QuickRecovery</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Recovery of files and applications by taking advantage of
    snapshot technologies</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &#149;&nbsp;<B>ContinuousDataReplicator</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Continuous capture of changes to data and copying of those
    changes to a secondary location for disaster recovery and fast
    recovery of individual files</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &#149;&nbsp;<B>DataMigrator</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Active migration and archiving of data to less expensive
    secondary storage indexed for search and retrieval</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &#149;&nbsp;<B>DataArchiver</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Archiving and indexing of e-mail messages and attachments for
    compliance and legal discovery purposes</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &#149;&nbsp;<B>Data Classification</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Creation of a catalog of key attributes about primary data to
    enable intelligent, automated policy-based data movement and
    management</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &#149;&nbsp;<B>StorageManager</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Storage resource discovery and usage tracking of applications,
    files, organizations and individual users</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &#149;&nbsp;<B>QNet</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Consolidated management and reporting on data management service
    levels and data movement operations</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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</FONT></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>QiNetix Galaxy Backup and Recovery</I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
QiNetix Galaxy provides high-performance backup of enterprise
applications and data for restoration when information is
accidentally deleted, when disks fail, when servers need to be
rebuilt or for disaster recovery of servers. Policies define
when and how data is protected and stored, providing efficient
use of storage devices and media, including drive and device
sharing.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>QiNetix QuickRecovery</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
QiNetix QuickRecovery recovers application data and files from
disks to minimize disruption of a customer&#146;s operations.
Using snapshot technologies to create one or more
<FONT style="white-space: nowrap">point-in</FONT>-time recovery
images, QuickRecovery offers users the ability to rapidly
recover data from alternative points in time. The software
incorporates block-level data movement and features a simple
interface that creates, tracks, administers and manages
<FONT style="white-space: nowrap">point-in</FONT>-time snapshots
of data for testing, recovery and/or business continuance.
</DIV>

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<DIV align="left"><FONT size="1">

</FONT></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>QiNetix ContinuousDataReplicator</I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
QiNetix ContinuousDataReplicator continuously captures
file-level changes to data and copies those changes to a
secondary system to protect from disk, server or site loss. The
software retains multiple
<FONT style="white-space: nowrap">point-in</FONT>-time copies of
the data at the secondary location, offering flexible recovery
options back to the primary location. ContinuousDataReplicator
reduces risk of lost data and can simplify a customer&#146;s
operations by centralizing data from many remote office
locations into a single location, leveraging systems and
personnel expertise rather than having to duplicate resources at
every location.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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    <TD width="3%"></TD>
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</TR>

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    <TD></TD>
    <TD>
    <B><I>QiNetix DataMigrator</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
QiNetix DataMigrator actively moves less-used or older data from
higher-cost primary storage to less expensive secondary storage
and indexes it for search and retrieval purposes without
disrupting how applications or end users access information. By
shrinking the amount of data stored on primary storage,
DataMigrator can also reduce the amount of time needed for
backup and information technology administration, while
improving computing system performance. A single, comprehensive
capacity management solution for Windows, UNIX, Linux, Microsoft
Exchange, Novell Netware and other environments, DataMigrator
can help reduce capital expenditures on new primary storage.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>QiNetix DataArchiver</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
QiNetix DataArchiver archives and indexes
<FONT style="white-space: nowrap">e-mail</FONT> messages and
attachments to help organizations meet compliance, regulatory
and legal discovery requirements. The software offers extensive
search capabilities to rapidly locate and retrieve
<FONT style="white-space: nowrap">e-mail</FONT> messages.
Full-text indexing and keyword searching allows administrators
and compliance officers to find and retrieve
<FONT style="white-space: nowrap">e-mail</FONT> messages by
searching <FONT style="white-space: nowrap">e-mail</FONT> header
data along with message and attachment content.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>QiNetix Data Classification</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
QiNetix Data Classification creates a catalog of key attributes
of unstructured data stored on primary computing systems,
complementing the indexing of applications and data on secondary
storage resources provided by other QiNetix applications. The
software enhances how administrators can manage data by offering
a broad set of attributes, instead of just its physical
location. Data Classification helps enterprises more precisely
organize and manage tiered classes of data throughout its
lifecycle. Currently, Data Classification can only be used in
combination with our other products.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>QiNetix StorageManager</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
QiNetix StorageManager discovers, tracks and reports on primary
disk storage by users, enterprises, files and applications. Its
comprehensive view of hosts, applications and storage resources
provides detailed reports on disk storage assets, usage, trends
and costs. The software also offers the ability to view links
between logical entities (such as applications and files) and
physical storage resources. StorageManager enables enterprises
to better use storage resources that they already have, as well
as plan ahead for future needs.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>QiNetix QNet</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
QiNetix QNet consolidates management and reporting of data
management service levels and data movement operations within a
single browser interface. QNet collects information from our
data management applications and can correlate it to primary and
secondary storage use, including data characteristics, giving an
<FONT style="white-space: nowrap">end-to</FONT>-end lifecycle
view of data. In addition, QNet can project secondary storage
resource consumption, enabling users to determine if they have
sufficient storage capacity and help plan for future needs. The
software also provides operational reports detailing performance
versus operation service level objectives.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our QiNetix suite includes intelligent operations management
capabilities (iQ Ops) to simplify the management of complex data
and network and storage information technology operations. iQ
Ops provides proactive and reactive monitoring and reporting
functions, alert notification and analysis enabling customers to
quickly detect, troubleshoot and resolve potential problems.
Combined with the reliability and resiliency features of our
Common Technology Engine, iQ Ops enables our customers to
improve overall operations with higher system availability.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
CommVault and our QiNetix applications have received numerous
industry awards and recognition. In July 2005, CommVault was
placed in the &#147;Leaders Quadrant&#148; of the Gartner
Enterprise Backup/Recovery Software market Magic Quadrant. Also
in 2005, our Galaxy software earned top rating over its
</DIV>

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direct competitors and was awarded the Diogenes Labs-Storage
magazine Quality Award in the enterprise backup and recovery
software category. In 2004, our QiNetix suite was voted an
&#147;Innovation Award Winner&#148; and in 2005, the &#147;best
solution&#148; by senior IT executives at the Midsize Enterprise
Summit. Storage magazine and SearchStorage.com gave our QiNetix
suite the 2003 &#147;Gold Medal&#148; for Backup and Disaster
Recovery Software. Storage magazine and SearchStorage.com
similarly gave our Galaxy software the 2002 &#147;Gold
Medal&#148; for Backup and Disaster Recovery Software. In 2003,
our software applications were named by Network Magazine as
&#147;Backup/Recovery Software Product of the Year&#148; and by
eWEEK and PC Magazine as &#147;Best of Show Enterprise
Storage&#148; at the CeBit America trade show. In 2002, our
Galaxy software was named by Microsoft Certified Professional
Magazine as &#147;Editor&#146;s Choice: Products We Love&#148;
for backup. We believe that these awards increase our market
recognition and enhance selling efforts.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Services</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A comprehensive global offering of customer support and other
professional services is critical to the successful marketing,
sale and deployment of our software. From planning to deployment
to operations, we offer a complete set of technical services,
training and support options that maximize the operational
benefits of our QiNetix suite. Our commitment to superior
customer support is reflected in the breadth and depth of our
services offerings as well as in our ongoing initiatives to
engineer resiliency, automation and serviceability features
directly into our products.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have established a global customer support organization built
specifically to handle our expanding customer base. We offer
multiple levels of customer support that can be tailored to the
customer&#146;s response needs and business sensitivities. Our
customer support services consist of:
</DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Real-Time Support.</I> Our support staff are available 24/7
    by telephone to provide first response and manage the resolution
    of customer issues. In addition to phone support, our customers
    have access to an online product support database for help with
    troubleshooting and operational questions. Innovative use of
    web-based diagnostic tools provides problem analysis and
    resolution often without the need for onsite support personnel.
    Our software design is also an important element in our
    comprehensive customer support, including &#147;root cause&#148;
    problem analysis, intelligent alerting and troubleshooting
    assistance. Our software is directly linked to our online
    support database allowing customers to analyze problems without
    engaging our technical support personnel.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Significant Network and Hardware Expertise.</I> Our support
    engineers have extensive knowledge of complex applications,
    servers and networks. We proactively take ownership of the
    customer&#146;s problem, regardless of whether the issue is
    directly related to our products or to those of another vendor.
    We have also developed and maintain a knowledge library of
    storage systems and software products to further enable our
    support organization to quickly and effectively resolve customer
    problems.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Global Operations.</I> We enhanced our Oceanport, New Jersey
    support operations with a new
    <FONT style="white-space: nowrap">state-of</FONT>-the-art
    technical support center which became operational in April 2006.
    We also have established key support operations in Hyderabad,
    India, Oberhausen, Germany and Shanghai, China, which are
    complemented by regional support centers in other worldwide
    locations. Furthermore, we have implemented a voice-over-IP
    telephony system to tie our worldwide support centers together
    with an integrated call center messaging and trouble ticket
    management system. We have designed our support infrastructure
    to be able to scale with the increasing globalization of our
    customers.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We also provide a wide range of other professional services that
consist of:
</DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Assessment and Design Services.</I> Our assessment and design
    services assist customers in determining data and storage
    management requirements, designing solutions to meet those
    requirements and planning for successful implementation and
    deployment.</TD>
</TR>

</TABLE>

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    <TD width="1%"></TD>
    <TD width="96%"></TD>
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<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Implementation and Post-deployment Services.</I> Our
    professional services team helps customers efficiently
    configure, install and deploy our QiNetix suite based on
    specified business objectives. Our SystemCare Review Services
    assist our customers with assessing the post-deployment
    operational performance of our QiNetix suite.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Training Services.</I> We provide global onsite and offsite
    training for our products. Packaged or customized customer
    training courses are available in instructor-led or
    computer-based formats. We offer in-depth training and
    certification for our resellers in pre- and post-sales support
    methodologies, including web access to customizable
    documentation and training materials.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Strategic Relationships</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
An important element of our strategy is to establish
relationships with third parties to assist us in developing,
marketing, selling and implementing our software and services.
We believe that strategic and technology-based relationships
with industry leaders are fundamental to our success. We have
forged numerous relationships with software application and
hardware vendors to enhance our combined capabilities and to
create the optimal combination of data management applications.
This approach enhances our ability to expand our product
offerings and customer base and to enter new markets. We have
established the following types of strategic relationships:
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Product and Technology Relationships.</I> We maintain
strategic product and technology relationships with major
industry leaders to ensure that our software applications are
integrated with, supported by and add value to our
partners&#146; hardware and software products. Collaboration
with these market leaders allows us to provide applications that
enable our customers to improve data management efficiency.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our significant strategic relationships include Dell, Hitachi
Data Systems and Microsoft. In addition to these relationships,
we maintain relationships with a broad range of industry vendors
to verify and demonstrate the interoperability of our software
applications with their equipment and technologies. These
vendors include Brocade Communications Systems, Inc., Cisco
Systems, Inc., EMC, Hewlett-Packard, IBM, Network Appliance,
Inc., Novell, Inc., Oracle Corporation and SAP&nbsp;AG.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Value-Added Reseller, Systems Integrator, Corporate Reseller
and Original Equipment Manufacturer Relationships.</I> Our
corporate resellers bundle or sell our software applications
together with their own products, and our value-added resellers
resell our software applications independently. As of
March&nbsp;31, 2006, we had over 300 reseller partners and
systems integrators distributing our software worldwide.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In order to broaden our market coverage, we have original
equipment manufacturer distribution agreements with Dell and
Hitachi Data Systems. Under these agreements, the original
equipment manufacturers sell, market and support our software
applications and services independently and/or incorporate our
software applications into their own hardware products. Our
original equipment manufacturer agreements do not contain any
minimum purchase or sale commitments. In addition to our
original equipment manufacturer agreement with Dell, we also
have a corporate reseller agreement with the Dell Software and
Peripherals division.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Customers</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We sell our suite of data management software applications and
related services directly to large global enterprises, small and
medium sized businesses and government agencies, and indirectly
through value-added resellers, systems integrators, corporate
resellers and original equipment manufacturer partners. As of
March&nbsp;31, 2006, we had licensed our software applications
to more than 3,700 registered customers in a broad range of
industries, including banking, insurance and financial services,
government, healthcare, pharmaceuticals and medical services,
technology, legal, manufacturing, utilities and energy. A
representative sample of well-known customers with a significant
deployment of CommVault software includes Ace Hardware
Corporation, Centex Homes, Clifford Chance LLP, Cozen
O&#146;Connor, Halcrow Group Ltd., Newell Rubbermaid Inc., North
Fork Bank, Ricoh Company, Ltd., the United Kingdom&#146;s
Department of International Development and Welch Foods Inc.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sales through our original equipment manufacturer agreement with
Dell accounted for approximately 2% of our revenues for the year
ended March&nbsp;31, 2005 and 7% of our total revenues for
fiscal 2006. Sales through our reseller agreement with Dell
accounted for approximately 11% of our total revenues for fiscal
2005 and 2006. Dell is an original equipment manufacturer and a
reseller that purchases software from us for resale to its
customers, but is not the end user of our software. Sales to the
U.S.&nbsp;federal government accounted for approximately 9% of
our total revenues for fiscal 2005 and 8% of our total revenues
for fiscal 2006.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Technology</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our Common Technology Engine serves as a major differentiator
versus our competitors&#146; data management software products.
Our Common Technology Engine&#146;s unique indexing, cataloging,
data movement, media management and policy technologies are the
source of the performance, scale, management, cost of ownership
benefits and seamless interoperability inherent in all of our
data management software applications. Additional options enable
content search, data encryption and auditing features to support
data discovery and compliance requirements. Each of these
applications shares a common architecture consisting of three
core components: intelligent agent software, data movement
software and command and control software. These components may
be installed on a single host server, or each may be distributed
over many servers in a global network. Additionally, the
modularity of our software provides deployment flexibility. The
ability to share storage resources across multiple data
management applications provides easier data management and
lower total cost of ownership. We participate in industry
standards groups and activities that we believe will have a
direct bearing on the data management software market.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our software architecture consists of integrated software
components that are grouped together to form a CommCell.
Components of a CommCell are as follows:
</DIV>

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    <TD width="96%"></TD>
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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    one CommServe;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    one or more MediaAgents;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    one or more iDataAgents.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each highly scalable CommCell may be configured to reflect a
customer&#146;s geographic, organizational or application
environment. Multiple CommCells can be aggregated into a single,
centralized view for policy-based management across a
customer&#146;s local or global information technology
environment.
</DIV>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>CommServe.</I> The CommServe acts as the command and control
    center of the CommCell and handles all requests for activity
    between MediaAgent and iDataAgent components. The CommServe
    contains the centralized event and job managers and the index
    catalog. This database includes information about where data
    resides, such as the library, media and content of data. The
    centralized event manager logs all events, providing unified
    notification of important events. The job manager automates and
    monitors all jobs across the CommCell.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>MediaAgent.</I> The MediaAgent is a media independent module
    that is responsible for managing the movement of data between
    the iDataAgents and the physical storage devices. Our
    MediaAgents communicate with a broad range of storage devices,
    generating an index for use by each of our QiNetix applications.
    The MediaAgent software supports most storage devices, including
    automated magnetic tape libraries, tape stackers and loaders,
    standalone tape drives and magnetic storage devices,
    magneto-optical libraries, virtual tape libraries, DVD-RAM and
    CD-RW devices.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>iDataAgent.</I> The iDataAgent is a software module that
    resides on the server or other computing device and controls the
    data being protected, replicated, migrated or archived, often
    referred to simply as the &#147;client&#148; software.
    iDataAgents communicate with most open and network file systems
    and enterprise relational databases and applications, such as
    Microsoft Exchange, Microsoft SharePoint, Notes Domino Server,
    GroupWise, Oracle, Informix, Sybase, DB2 and SAP, to generate
    application aware indexes pertinent to granular recovery of
    application objects. The agent software contains the logic
    necessary to extract (or recover) data and send it to (or
    receive it from) the MediaAgent software.</TD>
</TR>

</TABLE>

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<B>Sales and Marketing</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We sell our data and storage management software applications
and related services to large global enterprises, small and
medium sized businesses and government agencies. We sell through
our worldwide direct sales force and our global network of
value-added resellers, systems integrators, corporate resellers
and original equipment manufacturer partners. As of
March&nbsp;31, 2006, we had 148&nbsp;employees in sales and
marketing. These employees are located in the Americas, Europe,
Australia and Asia.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have a variety of marketing programs designed to create brand
recognition and market awareness for our product offerings and
for sales lead generation. Our marketing efforts include active
participation at trade shows, technical conferences and
technology seminars; advertising; publication of technical and
educational articles in industry journals; sales training; and
preparation of competitive analyses. In addition, our strategic
partners augment our marketing and sales campaigns through
seminars, trade shows and joint advertising campaigns. Our
customers and strategic partners provide references and
recommendations that we often feature in our advertising and
promotional activities.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Research and Development</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our research and development organization is responsible for the
design, development, testing and certification of our data
management software applications. As of March&nbsp;31, 2006, we
had 180&nbsp;employees in our research and development group, of
which 28 are located at our Hyderabad, India development center.
Our engineering efforts support product development across all
major operating systems, databases, applications and network
storage devices. A substantial amount of our development effort
goes into certification, integration and support of our
applications to ensure interoperability with our strategic
partners&#146; hardware and software products. We have also made
substantial investments in the automation of our product test
and quality assurance laboratories. We spent $19.3&nbsp;million
on research and development activities in fiscal 2006,
$17.2&nbsp;million in fiscal 2005 and $16.2&nbsp;million in
fiscal 2004.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Competition</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The data storage management market is intensely competitive,
highly fragmented and characterized by rapidly changing
technology and evolving standards. We currently compete with
other providers of data management software as well as large
storage hardware manufacturers that have developed or acquired
their own data management software products. These manufacturers
have the resources and capabilities to develop their own data
management software applications, and many have been making
acquisitions and broadening their efforts to include broader
data management and storage products. These manufacturers and/or
our other current and potential competitors may establish
cooperative relationships among themselves or with third
parties, creating new competitors or alliances. Large operating
system and application vendors, including Microsoft, have
introduced products or functionality that include some of the
same functions offered by our software applications. In the
future, further development by these vendors could cause our
software applications and services to become redundant.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following are our primary competitors in the data management
software applications market, each of which has one or more
products that compete with a part of or all of our software
suite:
</DIV>

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    <TD width="96%"></TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    CA (formerly known as Computer Associates International, Inc.);</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    EMC;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Hewlett-Packard;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    IBM;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Symantec.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The principal competitive factors in our industry include
product functionality, product integration, platform coverage,
ability to scale, price, worldwide sales infrastructure, global
technical support, name recognition and reputation. The ability
of major system vendors to bundle hardware and software
solutions is also a significant competitive factor in our
industry. Although many of our competitors have greater
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
resources, a larger installed customer base and greater name
recognition, we believe we compete favorably on the basis of
these competitive factors.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Intellectual Property and Proprietary Rights</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our success and ability to compete depend on our continued
development and protection of our proprietary software and other
technologies. We rely primarily on a combination of trade
secret, patent, copyright and trademark laws, as well as
contractual provisions, to establish and protect our
intellectual property rights. We provide our software to
customers pursuant to license agreements that impose
restrictions on use. These license agreements are primarily in
the form of shrink-wrap or click-wrap licenses, which are not
negotiated with or signed by our end user customers. These
measures may afford only limited protection of our intellectual
property and proprietary rights associated with our software. We
also enter into confidentiality agreements with employees and
consultants involved in product development. We routinely
require our employees, customers and potential business partners
to enter into confidentiality agreements before we disclose any
sensitive aspects of our software, technology or business plans.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of May&nbsp;31, 2006, we had nine issued patents and 63
pending patent applications in the United States and 13 issued
patents and 75 pending patent applications in foreign countries.
As of May&nbsp;31, 2006, we also had 13 pending European Patent
applications with the European Patent Office which, if allowed,
may be converted into issued patents in various European
Contracting States. Additionally, as of May&nbsp;31, 2006, we
had six pending patent applications under the Patent Cooperation
Treaty, which we may convert into foreign patent applications in
various Patent Cooperation Treaty Contracting States within the
time periods specified in the treaty. Pending patent
applications may receive unfavorable examination and are not
guaranteed allowance as issued patents. We may elect to abandon
or otherwise not pursue prosecution of certain pending patent
applications due to patent examination results, economic
considerations, strategic concerns or other factors. We will
continue to assess appropriate occasions to seek patent and
other intellectual property protection for innovative aspects of
our technology that we believe provide us a significant
competitive advantage.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Despite our efforts to protect our trade secrets and proprietary
rights through patents and license and confidentiality
agreements, unauthorized parties may still attempt to copy or
otherwise obtain and use our software and technology. In
addition, we intend to expand our international operations and
effective patent, copyright, trademark and trade secret
protection may not be available or may be limited in foreign
countries. If we fail to protect our intellectual property and
other proprietary rights, our business could be harmed.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have entered into an original equipment manufacturer
agreement with Critical Technologies, Inc. whereby we embed
Critical Technologies&#146; indexing software in our software
applications for sale, as an option, to our customers. Our
agreement with Critical Technologies expires on May&nbsp;31,
2007 unless prior thereto either party gives at least
90&nbsp;days notice of termination. In addition to our agreement
with Critical Technologies, we currently resell certain software
from Microsoft, including Microsoft SQL Server, used in
conjunction with our software applications pursuant to an
independent software vendor royalty license and distribution
agreement that we have and plan to continue renewing annually.
We also currently resell certain other software from Microsoft,
including Windows Preinstallation Environment software, used in
conjunction with our software applications, pursuant to an
agreement with Microsoft that expires August&nbsp;31, 2006. We
have entered into and expect to enter into agreements with
additional third parties to license their technology for use
with our software applications.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Some of the products or technologies acquired, licensed or
developed by us may incorporate so-called &#147;open
source&#148; software and we may incorporate open source
software into other products in the future. The use of such open
source software may ultimately subject some products to
unintended conditions which may negatively affect our business,
financial condition, operating results, cash flow and ability to
commercialize our products or technologies.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
From time to time, we are participants or members of various
industry standard-setting organizations or other industry
technical organizations. Our participation or membership in such
organizations may, in
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
some circumstances, require us to enter into royalty or
licensing agreements with third parties regarding our
intellectual property under terms established by those
organizations, which we may find unfavorable.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the United States, we own or have common law trademark rights
in the following marks: CommVault, CommVault Systems, CommVault
Galaxy, QiNetix and Unified Data Management. We also have
several other trademarks and are actively pursuing trademark
registrations in several foreign jurisdictions.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Employees</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of March&nbsp;31, 2006, we had 612&nbsp;employees worldwide,
including 148 in sales and marketing, 180 in research and
development, 83 in general administration and 201 in customer
services and support. None of our employees are represented by a
labor union. We have never experienced a work stoppage and
believe our relationship with our employees is good.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Facilities</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our principal administrative, sales, marketing, customer support
and research and development facility is located at our
headquarters in Oceanport, New Jersey. We currently occupy
approximately 115,000&nbsp;square feet of office space in the
Oceanport facility under the terms of an operating lease
expiring in July 2008. We believe that our current facility is
adequate to meet our needs for at least the next 12&nbsp;months.
We believe that suitable additional facilities will be available
as needed on commercially reasonable terms. In addition, we have
offices in the United States in Arizona, California, Florida,
Georgia, Illinois, Massachusetts, New York, Oregon, Texas,
Virginia and Washington; Ottawa, Ontario; Mississauga, Ontario;
Reading, United Kingdom; Oberhausen, Germany; Utrecht,
Netherlands; Beijing, China; Shanghai, China; Sydney, Australia;
Col. Marte, Mexico; and Hyderabad, India.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Legal Proceedings</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
From time to time we are involved in litigation arising in the
ordinary course of our business. We are not presently a party to
any litigation the outcome of which, if determined adversely to
us, would individually or in the aggregate have a material
adverse effect on our business, results of operations or
financial condition.
</DIV>

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<A name='111'></A>
</DIV>

<!-- link1 "MANAGEMENT" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>MANAGEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Directors and Executive Officers</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table presents information with respect to our
directors and executive officers as of March&nbsp;1, 2006:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="51%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Age</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Position</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    N. Robert Hammer</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chairman, President and Chief Executive Officer</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Alan G. Bunte</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Vice President and Chief Operating Officer</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Louis F. Miceli</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice President and Chief Financial Officer</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ron Miiller</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice President of Sales, Americas</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Anand Prahlad</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice President, Product Development</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Suresh P. Reddy</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice President, Worldwide Technical Services&nbsp;&#38; Support</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Steven Rose</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice President, Europe, Middle East and Asia</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    David West</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice President, Marketing and Business Development</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Thomas Barry(1)(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Frank J. Fanzilli,&nbsp;Jr.(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Armando Geday</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Keith Geeslin(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Edward A. Johnson</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director*</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    F. Robert Kurimsky(1)(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Daniel Pulver(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gary B. Smith(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    David F. Walker(1)(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 3.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>*</TD>
    <TD align="left">
    Mr.&nbsp;Johnson will resign as a director immediately prior to
    the closing of the offering.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Member of the Audit Committee.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Member of the Nominations and Governance Committee.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Member of the Compensation Committee.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>N.&nbsp;Robert Hammer </I>has served as our Chairman,
President and Chief Executive Officer since March 1998.
Mr.&nbsp;Hammer was also a venture partner from 1997 until
December 2003 of the Sprout Group, the venture capital arm of
Credit Suisse&#146;s asset management business, which conducts
its activities through affiliates of Credit Suisse Securities
(USA) LLC, an underwriter in this offering. Prior to joining the
Sprout Group, Mr.&nbsp;Hammer served as the chairman, president
and chief executive officer of Norand Corporation, a portable
computer systems manufacturer, from 1988 until its acquisition
by Western Atlas, Inc. in 1997. Mr.&nbsp;Hammer led Norand
following its leveraged buy-out from Pioneer Hi-Bred
International, Inc. and through its initial public offering in
1993. Prior to joining Norand, Mr.&nbsp;Hammer also served as
chairman, president and chief executive officer of publicly-held
Telequest Corporation from 1987 until 1988 and of privately-held
Material Progress Corporation from 1982 until 1987. Prior to
joining Material Progress Corporation, Mr.&nbsp;Hammer spent
15&nbsp;years in various sales, marketing and management
positions with Celanese Corporation, rising to the level of vice
president and general manager of the structural composites
materials business. Mr.&nbsp;Hammer obtained his bachelor&#146;s
degree and master&#146;s degree in business administration from
Columbia University.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Alan G. Bunte </I>has served as our Executive Vice President
and Chief Operating Officer since October 2003 and served as our
senior vice president from December 1999 until October 2003.
Prior to joining our company, Mr.&nbsp;Bunte served Norand
Corporation from 1986 to January 1998, serving as its senior
vice president of planning and business development from 1991 to
January 1998. Mr.&nbsp;Bunte obtained his bachelor&#146;s and
master&#146;s degrees in business administration from the
University of Iowa.
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">65

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Louis F. Miceli </I>has served as our Vice President and
Chief Financial Officer since April 1997 and has over
30&nbsp;years of experience in various finance capacities for
several high-technology companies. Prior to joining our company,
Mr.&nbsp;Miceli served as chief financial officer of University
Hospital, part of the University of Medicine and Dentistry of
New Jersey (UMDNJ), from 1994 until 1997 and as the corporate
controller of UMDNJ from 1992 until 1994. Prior to joining
UMDNJ, Mr.&nbsp;Miceli served as the chief financial officer of
Syntrex, Inc., a word processing software and hardware
manufacturer, from 1985 until 1992, and as its controller from
1980 until 1985. Mr.&nbsp;Miceli began his career as a staff
auditor at Ernst&nbsp;&#38; Young LLP, where he served five
years. Mr.&nbsp;Miceli obtained his bachelor&#146;s degree,
<I>cum laude</I>, in accounting from Seton Hall University and
is a certified public accountant in the State of New Jersey.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Ron Miiller </I>has served as our Vice President of Sales,
Americas since January 2005. Prior to his current role,
Mr.&nbsp;Miiller served as our Central Region Sales Manager from
March 2000 to December 2004. Prior to joining our company,
Mr.&nbsp;Miiller served as Director, Central Region Sales for
Softworks, Inc., an EMC company, from March 1997 through March
2000, and prior to that Mr.&nbsp;Miiller was with Moore
Corporation, a diversified print and electronic communications
company from 1989 through March 1997 in various leadership
roles. Mr.&nbsp;Miiller received his bachelor of science degree
in marketing from Ball State University in 1989.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Anand Prahlad </I>has served as our Vice President, Product
Development since May 2001 and has been with our company since
1994 as a software development and software developer manager
and, from February 1999 to May 2001, as our senior director of
product development. As a software developer, Mr.&nbsp;Prahlad
oversaw the development of our QiNetix Galaxy software
applications. Prior to joining our company, Mr.&nbsp;Prahlad was
a software engineer with Mortgage Guaranty Insurance
Corporation, a provider of private mortgage insurance coverage.
Mr.&nbsp;Prahlad obtained his bachelor&#146;s degree from
Jawaharlal Nehru Technological University in India and his
master&#146;s degree in electrical and computer engineering from
Marquette University.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Suresh P. Reddy </I>has served as our Vice President,
Worldwide Technical Services&nbsp;&#38; Technical Support since
April 2005. Mr.&nbsp;Reddy also served our company from 1990
through March 2005, serving as our Vice President, Worldwide
Technical Services from September 2001 through March 2005, as
our Western Regional Manager, Technical Services from March 1994
through July 1995 and again from March 1998 until August 2001,
as our Director of Technical Services, Europe, Middle East and
Asia from August 1995 to February 1998 and as a Systems Engineer
from February 1990 to February 1994. Mr.&nbsp;Reddy obtained his
bachelor&#146;s degree in mechanical engineering from Jawaharlal
Nehru Technological University in India and his master&#146;s
degree in computer sciences from the New Jersey Institute of
Technology.
</DIV>

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</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Steven Rose </I>has served as our Vice President, Europe,
Middle East and Asia since June 2006. Prior to joining our
company, Mr.&nbsp;Rose served as Vice President, United Kingdom
and Ireland of Veritas Software Corp. from 2003 to July 2005
and, after Veritas&#146; merger with Symantec in July of 2005,
as the United Kingdom Managing Director for the combined entity.
Prior to joining Veritas, Mr.&nbsp;Rose served as Chief
Executive Officer of CopperEye, a United Kingdom based software
company, from 2002 to 2003, and prior to that served as Managing
Director, Europe for FatWire Corporation, a New York based
software company, from 2001 to 2002. Prior to joining FatWire,
Mr.&nbsp;Rose served as the Managing Director, Europe of NEON
Systems (UK)&nbsp;Ltd., a United Kingdom based company selling
software products for systems integration, from 1997 to 2001.
Prior to joining NEON Systems, Mr.&nbsp;Rose held several sales,
marketing and general management positions with several software
and systems companies, including TCAM Systems (UK)&nbsp;Ltd.,
Royal Blue Technologies, Ltd., and Network Systems Corporation.
Mr.&nbsp;Rose attended the Royal Military Academy, Sandhurst and
served as an officer in the British Army for six years.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>David West </I>has served as our Vice President, Marketing
and Business Development since September 2005 and our Vice
President, Business Development from August 2000 to September
2005. Prior to joining our company, Mr.&nbsp;West served as a
director of strategic alliances from April 1999 to July 2000 and
vice president of storage solutions in July 2000 at Legato
Systems, Inc., which was subsequently acquired by EMC
Corporation. Prior to joining Legato Systems, Mr.&nbsp;West
served as vice president of sales at
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
Intelliguard Software, Inc., which was also subsequently
acquired by EMC Corporation, from 1990 to April 1999.
Mr.&nbsp;West obtained his bachelor&#146;s degree in electrical
engineering from Villanova University.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Thomas Barry </I>has served as a director of our company
since our acquisition from Lucent in April 1996 and is chairman
of our Nominations and Governance Committee. Mr.&nbsp;Barry
periodically provides consulting services through
T&nbsp;&#38;&nbsp;M&nbsp;Barry Consulting&nbsp;LLC, which he
formed in February&nbsp;2002. Mr.&nbsp;Barry served as executive
vice president of Glencoe Capital LLC from 1997 until 1998 and
in several investment banking and corporate finance positions at
Donaldson, Lufkin&nbsp;&#38; Jenrette (now part of Credit Suisse
Securities (USA) LLC) from 1980 through 1997. Mr.&nbsp;Barry
obtained his bachelor&#146;s degree in accounting from Pace
University and received a master of science in computer science
from Columbia University in February 2002.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Frank J. Fanzilli,&nbsp;Jr.</I> has served as a director of
our company since July 2002. Mr. Fanzilli retired from active
employment in March&nbsp;2002. Prior to his retirement,
Mr.&nbsp;Fanzilli spent 17&nbsp;years at Credit Suisse First
Boston LLC (now Credit Suisse Securities (USA) LLC), holding a
variety of positions in information technology and rising to the
level of managing director and chief information officer. Prior
to joining Credit Suisse First Boston, Mr.&nbsp;Fanzilli spent
seven years at IBM, where he managed systems engineering and
software development for Fortune 50 accounts. Mr.&nbsp;Fanzilli
obtained his bachelor&#146;s degree in management, <I>cum
laude</I>, from Fairfield University and his master&#146;s in
business administration, with distinction, from New York
University. Mr.&nbsp;Fanzilli also serves on the board of
directors of Interwoven, Inc., MLayers Inc. and Sona Mobile, Inc.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Armando Geday </I>has served as a director of our company
since July 2000. From April 1997 until February 2004,
Mr.&nbsp;Geday served as president, chief executive officer and
a director of GlobespanVirata, Inc., a digital subscriber line
chipset design company. After GlobespanVirata was acquired by
Conexant Systems, Inc. in 2004, Mr.&nbsp;Geday served as chief
executive officer of Conexant from February 2004 until November
2004. Prior to joining GlobespanVirata, Mr.&nbsp;Geday served as
vice president and general manager of the multimedia
communications division of Rockwell Semiconductor Systems from
1986 to 1997. Prior to joining Rockwell, Mr.&nbsp;Geday held
several other marketing and general management positions at
Rockwell and Harris Semiconductor. Mr.&nbsp;Geday obtained his
bachelor&#146;s degree in electrical engineering from the
Florida Institute of Technology. Mr.&nbsp;Geday also serves on
the board of directors of MagnaChip Semiconductor.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Keith Geeslin </I>has served as a director of our company
since May 1996 and is chairman of our Compensation Committee.
Mr.&nbsp;Geeslin became a partner at Francisco Partners in
January 2004, prior to which Mr.&nbsp;Geeslin spent
19&nbsp;years with the Sprout Group, the venture capital arm of
Credit Suisse&#146;s asset management business, which conducts
its activities through affiliates of Credit Suisse Securities
(USA) LLC, an underwriter in this offering. Prior to joining the
Sprout Group, Mr.&nbsp;Geeslin was the general manager of a
division of Tymshare, Inc. and held various positions at its
Tymnet subsidiary from 1980 to 1984. Mr.&nbsp;Geeslin obtained
his bachelor&#146;s degree in electrical engineering from
Stanford University and master&#146;s degrees from Stanford
University and Oxford University. Mr.&nbsp;Geeslin also serves
on the board of directors of Synaptics, Inc. and Yipes
Enterprise Services, Inc.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Edward A. Johnson </I>has served as a director of our company
since May 2005. Mr.&nbsp;Johnson has served as a managing
director of Credit Suisse Securities (USA), LLC and a partner at
DLJ Merchant Banking since the merger of Credit Suisse First
Boston LLC (now Credit Suisse Securities (USA) LLC) with
Donaldson, Lufkin&nbsp;&#38; Jenrette in November 2000.
Mr.&nbsp;Johnson initially joined Credit Suisse in September
1998. Credit Suisse Securities (USA) LLC is an underwriter in
this offering. Prior to joining Credit Suisse, Mr.&nbsp;Johnson
spent four years at Warburg Pincus, LLC in its private equity
area, and spent two years as a consultant with the Boston
Consulting Group. Prior to earning his master&#146;s in business
administration, Mr.&nbsp;Johnson served as a refinery planner
for Chevron Corporation. Mr.&nbsp;Johnson obtained his bachelor
of science degree in chemical engineering from Stevens Institute
of Technology and master&#146;s in business administration from
the Wharton School of the University of Pennsylvania.
Mr.&nbsp;Johnson also serves on the board of directors of Focus
Diagnostics, Inc., Aircast Inc., Thompson Publishing Group and
Wastequip, Inc. Mr.&nbsp;Johnson will resign his directorship
immediately prior to the closing of this offering.
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>F.&nbsp;Robert Kurimsky </I>has served as a director of our
company since February 2001. Mr.&nbsp;Kurimsky served as senior
vice president of Technology Solutions Company, a systems
integrator, from 1994 through 1998 and again from January 2002
through June 2003. Mr.&nbsp;Kurimsky served as senior vice
president of The Concours Group, a consulting and executive
education provider, from 1998 through December 2001. Prior to
his service with Technology Solutions Company, Mr.&nbsp;Kurimsky
spent 20&nbsp;years in information systems and administration
functions at the Philip Morris Companies, Inc. (now Altria
Group, Inc.), rising to the level of vice president.
Mr.&nbsp;Kurimsky obtained a bachelor of science at Fairfield
University and a master of engineering degree from Yale
University. Mr.&nbsp;Kurimsky also serves on the board of
directors of The Advisory Council, a privately-held research and
advisory services company.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Daniel Pulver </I>has served as a director of our company
since October 1999. Mr.&nbsp;Pulver served as a director at
Credit Suisse First Boston LLC from November 2000, when Credit
Suisse First Boston LLC (now Credit Suisse Securities
(USA)&nbsp;LLC) merged with Donaldson, Lufkin&nbsp;&#38;
Jenrette, until April 2005. Mr.&nbsp;Pulver obtained his
bachelor&#146;s degree from Stanford University and his
master&#146;s in business administration from Harvard Business
School. Mr.&nbsp;Pulver also serves on the board of directors
and the compensation committee of Nextpharma S.A.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Gary B. Smith </I>has served as a director of our company
since May 2004. Mr.&nbsp;Smith is currently the president, chief
executive officer and a director of Ciena Corporation.
Mr.&nbsp;Smith began serving as chief executive officer of Ciena
in May 2001, in addition to his existing responsibilities as
president and director, positions he has held since October
2000. Prior to his current role, his positions with Ciena
included chief operating officer and senior vice president,
worldwide sales. Mr.&nbsp;Smith joined Ciena in November 1997 as
vice president, international sales. From 1995 through 1997,
Mr.&nbsp;Smith served as vice president of sales and marketing
for INTELSAT. He also previously served as vice president of
sales and marketing for Cray Communications, Inc. Mr.&nbsp;Smith
received his master&#146;s in business administration from
Ashridge Management College, United Kingdom. Mr.&nbsp;Smith
currently serves on the board of directors for the American
Electronics Association, and also serves as a commissioner for
the Global Information Infrastructure Commission.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>David F. Walker </I>has served as a director of our company
since February 2006 and is chairman of our Audit Committee.
Mr.&nbsp;Walker is the Director of the Accountancy Program and
the Program for Social Responsibility and Corporate Reporting at
the University of South Florida St. Petersburg, where he has
been employed since 2002. Prior to joining the University of
South Florida, Mr.&nbsp;Walker was with Arthur Andersen LLP,
having served as a partner in that firm from 1986 through 2002.
Mr.&nbsp;Walker earned a master&#146;s of business
administration from the University of Chicago Graduate School of
Business with concentration in accounting, finance and
marketing, and a bachelor of arts degree from DePauw University
with majors in economics and mathematics and a minor in business
administration. Mr.&nbsp;Walker is a certified public accountant
and a certified fraud examiner. Mr.&nbsp;Walker also serves on
the board of directors of Chico&#146;s FAS, Inc., First
Advantage Corporation and Technology Research Corporation,
participating on the executive, audit and corporate governance
committees of Chico&#146;s and chairing its audit committee;
chairing the audit committee of First Advantage; and
participating on the compensation and nominating committees of
Technology Research.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon the closing of the offering, the board of directors will be
divided into three classes, with one class of directors elected
at each annual meeting. The members of Class&nbsp;I, whose terms
expire at the next annual meeting, will be
Messrs.&nbsp;Kurimsky, Walker and Geday. The members of
Class&nbsp;II, whose terms expire at the second annual meeting
following this offering, will be Messrs.&nbsp;Pulver, Barry and
Fanzilli. The members of Class&nbsp;III, whose terms expire at
the third annual meeting following this offering, will be
Messrs.&nbsp;Hammer, Geeslin and Smith.
</DIV>

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</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Compensation Committee Interlocks and Insider
Participation</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The members of our compensation committee are
Messrs.&nbsp;Fanzilli, Geeslin and Pulver, each of whom was
formerly employed by Credit Suisse Securities (USA)&nbsp;LLC or
its affiliates.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;Fanzilli formerly served in several capacities at
    Credit Suisse Securities (USA)&nbsp;LLC. Affiliates of Credit
    Suisse Securities (USA)&nbsp;LLC hold 3,044,000&nbsp;shares of
    our Series&nbsp;A, B, C, D and E preferred stock, which will be
    converted
    into &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of our common stock and the right to receive
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in cash upon the completion of the offering.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;Geeslin was formerly a managing partner of the Sprout
    Group, the venture capital arm of Credit Suisse&#146;s asset
    management business, which conducts its activities through
    affiliates of Credit Suisse Securities (USA)&nbsp;LLC. The
    Sprout Group, together with its affiliates, holds
    3,044,000&nbsp;shares of our Series&nbsp;A, B, C, D and E
    preferred stock, which will be converted
    into &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of our common stock and the right to receive
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in cash upon the completion of the offering.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;Pulver was formerly a director of Credit Suisse
    Securities (USA)&nbsp;LLC and a principal at DLJ Merchant
    Banking, the corporate leveraged buyout arm of Credit
    Suisse&#146;s asset management business, which conducts its
    activities through affiliates of Credit Suisse Securities
    (USA)&nbsp;LLC. DLJ Merchant Banking funds hold
    1,299,426&nbsp;shares of our Series&nbsp;A, B, C, D and E
    preferred stock, which will be converted
    into &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of our common stock and the right to receive
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in cash upon the completion of the offering.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Director Compensation</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our compensation committee of the board of directors determines
the amount of any fees, whether payable in cash, shares of
common stock or options to purchase common stock, and expense
reimbursement that directors receive for attending meetings of
the board of directors or committees of the board. To date,
other than to members of our Audit Committee, we have not paid
any fees to our directors, but we have reimbursed them for their
expenses incurred in connection with attending meetings.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Following the completion of this offering, we intend to
compensate non-employee directors for their service on our
board. Each non-employee director will be eligible to receive an
annual retainer of $20,000, with an additional stipend of $1,000
for each board meeting attended in person. The chairperson of
our audit committee, compensation committee and governance
committee will be eligible to receive an additional annual
retainers of $24,000, $7,500 and $7,500, respectively. Each
committee member will be eligible to receive an additional
annual retainer of $5,000.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Non-employee directors elected to the board of directors in the
future will be eligible to receive an initial option grant
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
upon their election. In addition, non-employee directors will be
eligible to receive annual option grants
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
beginning
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
except that some of our current non-employee directors will not
be eligible to receive an annual grant until the options they
currently hold have fully vested. Option grants to our
non-employee directors will vest monthly over a four-year
period, except that the shares that would otherwise vest over
the first 12&nbsp;months shall not vest until the first
anniversary of the grant. All option grants to our non-employee
directors will be pursuant to our 2006 Long-Term Stock Incentive
Plan. See &#147;&#151;&nbsp;Employee Benefit Plans&nbsp;&#151;
2006 Long-Term Stock Incentive Plan&#148; for more information
about this plan. We will also continue to reimburse all of our
directors for their reasonable expenses incurred in attending
meetings of our board or committees.
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Executive Compensation</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth information concerning the
compensation received for services rendered to us by our Chief
Executive Officer and each of our five most highly-compensated
executive officers for the year ended March&nbsp;31, 2006:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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    <TD width="37%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Long-Term</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Annual Compensation</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Compensation Awards</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other Annual</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Securities Underlying</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD align="left" nowrap><B>Name and Principal Position</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Salary</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Bonus</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Compensation(1)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Options</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    N. Robert Hammer</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>363,462</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>236,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>70,930(2)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>Chairman, President and Chief Executive Officer</I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Alan G. Bunte</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>264,546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>123,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>Executive Vice President and Chief Operating Officer</I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Louis F. Miceli</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>257,631</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>123,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>Vice President and Chief Financial Officer</I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    David West</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>221,154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>Vice President, Marketing and Business Development</I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ron Miiller</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>207,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>189,820</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR bgcolor="#CCEEFF">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>Vice President of Sales, Americas</I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Scott Mercer(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>179,111</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>173,968</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <I>Vice President, Europe, Middle East and Asia</I></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 3.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Other than Mr.&nbsp;Hammer, none of our six most
    highly-compensated executive officers received other annual
    compensation exceeding $50,000 for the year ended March&nbsp;31,
    2006.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Mr. Hammer&#146;s other annual compensation for the year ended
    March&nbsp;31, 2006 included our payment of $23,504 for airfare
    for Mr.&nbsp;Hammer between his residence in Florida and our
    headquarters in Oceanport, New Jersey and $22,200 related to
    housing costs for the rental of an apartment for Mr.&nbsp;Hammer
    in New Jersey. No other item of Mr.&nbsp;Hammer&#146;s other
    annual compensation individually exceeded 25% of
    Mr.&nbsp;Hammer&#146;s total other annual compensation for the
    year ended March&nbsp;31, 2006.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;Mercer passed away in January 2006.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Employment Agreements</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In February 2004, we entered into an employment agreement with
N. Robert Hammer. The agreement has an initial term ending on
March&nbsp;31, 2005 and automatically extends for additional
one-year terms unless either party elects, at least 30&nbsp;days
prior to the expiration of a term, to terminate the agreement.
The agreement provides that Mr.&nbsp;Hammer&#146;s annual salary
shall be subject to annual review by our board of directors. The
agreement also provides that Mr.&nbsp;Hammer shall be eligible
for an annual cash bonus with a target bonus potential equal to
a percentage of his base salary and that he shall be entitled to
participate in the employee benefits plans in which our other
executives may participate. If we terminate
Mr.&nbsp;Hammer&#146;s employment for any reason other than
cause, death or upon a change in control of our company, the
agreement provides that, for a one-year period, Mr.&nbsp;Hammer
will be entitled to receive his then-current base salary (either
in equal bi-weekly payments or a lump sum payment, at our
discretion) and we will be required to continue paying the
premiums for Mr.&nbsp;Hammer&#146;s and his dependents&#146;
health insurance coverage. The agreement provides that if a
change in control of our company occurs, all options held by
Mr.&nbsp;Hammer shall immediately become exercisable. If a
change in control of our company occurs and
Mr.&nbsp;Hammer&#146;s employment is terminated for reasons
other than for cause (other than a termination
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">70

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
resulting from a disability) within two years of the change in
control, or if Mr.&nbsp;Hammer terminates his employment within
60&nbsp;days of a material diminution in his salary or duties or
the relocation of his employment within two years following a
change in control of our company, then he shall be entitled to
(1)&nbsp;a lump sum severance payment equal to one and a half
times his base salary at the time of the change in control plus
an amount equal to Mr.&nbsp;Hammer&#146;s target bonus at the
time of the change in control, and (2)&nbsp;health insurance
coverage for Mr.&nbsp;Hammer and his dependents for an
18&nbsp;month period. The agreement provides that, during his
term of employment with us and for a period of one year
following any termination of employment with us, Mr.&nbsp;Hammer
may not participate, directly or indirectly, in any capacity
whatsoever, within the United States, in a business in
competition with us, other than beneficial ownership of up to
one percent of the outstanding stock of a publicly held company.
In addition, Mr.&nbsp;Hammer may not solicit our employees or
customers for a period of one year following any termination of
his employment with us.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In February 2004, we entered into employment agreements with
Alan G. Bunte and Louis F. Miceli. Each of these agreements has
an initial term ending on March&nbsp;31, 2005 and automatically
extends for additional one-year terms unless either party to the
agreement elects, at least 30&nbsp;days prior to the expiration
of a term, to terminate the agreement. The agreements with
Messrs.&nbsp;Bunte and Miceli provide that the annual salary of
each shall be subject to annual review by our chief executive
officer or his designee, and also provides that each shall be
eligible for an annual cash bonus with a target bonus potential
equal to a percentage of the officer&#146;s base salary. The
agreements with Messrs.&nbsp;Bunte and Miceli each provide that
these officers shall be entitled to participate in the employee
benefits plans in which our other executives may participate. If
we terminate the employment of either of these officers for any
reason other than for cause or death, each of the agreements
provide that, for a one-year period, the terminated officer will
be entitled to receive his then-current base salary (either in
equal bi-weekly payments or a lump sum payment, at our
discretion), and we will be required to continue paying the
premiums for the officer&#146;s and his dependents&#146; health
insurance coverage. Each agreement provides that, during his
term of employment with us and for a period of one year
following any termination of employment with us, the officer may
not participate, directly or indirectly, in any capacity
whatsoever, within the United States, in a business in
competition with us, other than beneficial ownership of up to
one percent of the outstanding stock of a publicly held company.
In addition, neither of these officers may solicit our employees
or customers for a period of one year following any termination
of employment with us.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Change of Control Agreements</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have entered into change of control agreements with all of
our executive officers, other than Mr.&nbsp;Hammer, whose
employment agreement sets forth the protections upon a change of
control described above. Each of these agreements provides that
if a change in control of our company occurs and the employment
of any of the officers is terminated for reasons other than for
cause, or if the officer terminates his employment within
60&nbsp;days of a material diminution in his salary or duties or
the relocation of his employment following a change in control
of our company, then all stock options held by the officer shall
immediately become exercisable. In addition, the change of
control agreements with Messrs.&nbsp;Bunte and Miceli provide
that if a change in control of our company occurs and the
employment of either of these officers is terminated for reasons
other than for cause within two years of the change in control,
or if the officer terminates his employment within 60&nbsp;days
of a material diminution in his salary or duties or the
relocation of his employment within two years following a change
in control of our company, then the officer shall be entitled to
(1)&nbsp;a lump sum severance payment equal to one and a half
times the sum of the officer&#146;s annual base salary at the
time of the change in control and all bonus payments made to the
officer during the one-year period preceding the date of the
change in control, and (2)&nbsp;health insurance coverage for
the officer and his dependents for an 18&nbsp;month period. The
change of control agreements with Messrs.&nbsp;West, Miiller,
Prahlad, Reddy and Rose have substantially identical provisions
that provide for a lump sum severance payment equal to the
officer&#146;s annual base salary at the time of the change in
control and health insurance coverage for the officer and his
dependents for a 12&nbsp;month period.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">71

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The change of control agreements with Messrs.&nbsp;Bunte and
Miceli provide that, for an 18&nbsp;month period following the
termination of employment, the officers may not engage in, or
have any interest in, or manage or operate any company or other
business (whether as a director, officer, employee, partner,
equity holder, consultant or otherwise) that engages in any
business which then competes with any of our businesses, other
than beneficial ownership of up to five percent of the
outstanding voting stock of a publicly traded company. The
agreements also prohibit Messrs.&nbsp;Bunte and Miceli from
inducing any of our employees to terminate their employment with
us or to become employed by any of our competitors during the
18&nbsp;month period. Messrs.&nbsp;West, Miiller, Prahlad, Reddy
and Rose are subject to substantially identical non-competition
and non-solicitation provisions for a one-year period following
the termination of employment.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Stock Option Grants in Last Fiscal Year</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth information as to options granted
to the named executive officers during the year ended
March&nbsp;31, 2006. We have not granted any stock appreciation
rights.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Individual Grants</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Potential Realizable</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Value at Assumed Annual</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percent of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Rates of Stock Price</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Securities</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total Options</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Appreciation for</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Underlying</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Granted to</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercise</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Option Term(2)</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Options</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Employees in</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Price per</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Expiration</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Granted</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fiscal Year(1)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Date</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>5%</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>10%</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    N. Robert Hammer</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Alan G. Bunte</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Louis F. Miceli</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    David West</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ron Miiller</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Scott Mercer(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Based on options to purchase an aggregate
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock granted by us during the year ended
    March&nbsp;31, 2006.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Potential realizable values are net of exercise price, but
    before the payment of taxes associated with exercise. Amounts
    represent hypothetical gains that could be achieved for the
    respective options if exercised at the end of the option term.
    The 5% and 10% assumed annual rates of compounded stock price
    appreciation are mandated by rules of the Securities and
    Exchange Commission and do not represent our estimate or
    projection of our future common stock prices. These amounts
    represent certain assumed rates of appreciation in the value of
    the common stock from the fair market value on the date of
    grant. Actual gains, if any, on stock option exercises are
    dependent on the future performance of the common stock and
    overall stock market conditions. The amounts reflected in the
    table may not necessarily be achieved.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;Mercer passed away in January 2006.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">72

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Aggregated Option Exercises in Last Fiscal Year and Fiscal
Year End Option Values</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth information with respect to
unexercised options held by the named executive officers as of
March&nbsp;31, 2006. No options were exercised by the named
executive officers during the fiscal year ended March&nbsp;31,
2006.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="28%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Number of Securities</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Value of Unexercised</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Underlying Unexercised</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>In-the-Money Options</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Acquired</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Options at March&nbsp;31, 2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>at March&nbsp;31, 2005(2)</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>on</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Value</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercise</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Realized(1)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercisable</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Unexercisable</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercisable</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Unexercisable</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    N. Robert Hammer</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
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    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Alan G. Bunte</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Louis F. Miceli</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    David West</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ron Miiller</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Scott Mercer(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Based on the fair market value of our common stock on the date
    of exercise of the options, as determined by the board of
    directors, less the applicable exercise price per share,
    multiplied by the number of shares issued upon exercise of the
    option.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    There was no public trading market for our common stock as of
    March&nbsp;31, 2006. Accordingly, these values have been
    calculated on the basis of an assumed initial offering price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share (the midpoint of the estimated price range shown on the
    cover page of this prospectus), less the applicable exercise
    price per share, multiplied by the number of shares underlying
    such options.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;Mercer passed away in January 2006.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Employee Benefit Plans</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>1996 Stock Option Plan</I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have reserved a total
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock for issuance under the 1996 Stock Option Plan.
As of March&nbsp;31, 2006, options to
purchase &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock were outstanding at a weighted average exercise
price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
had been issued upon the exercise of outstanding options
and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
remain available for future grants. The 1996 Stock Option Plan
provides for the grant of nonqualified stock options and other
types of awards to our directors, officers, employees and
consultants, and is administered by our compensation committee.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The compensation committee determines the terms of options
granted under the 1996 Stock Option Plan, including the number
of shares subject to the grant, exercise price, term and
exercisability, and has the authority to interpret the plan and
the terms of the awards thereunder. The exercise price of stock
options granted under the plan must be no less than the par
value of our common stock, and payment of the exercise price may
be made by cash or other consideration as determined by the
compensation committee. Options granted under the plan may not
have a term exceeding ten years, and generally vest over a
four-year period. At any time after the grant of an option, the
compensation committee may, in its sole discretion, accelerate
the period during which the option vests.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Generally, no option may be transferred by its holder other than
by will or the laws of descent and distribution or pursuant to a
qualified domestic relations order as defined by the Internal
Revenue Code or Title&nbsp;I of the Employment Retirement Income
Security Act of 1974, as amended, or the rules thereunder. If an
employee leaves our company or is terminated, then any options
held by such employee generally may be terminated, and any
unexercised portion of the employee&#146;s options, whether or
not vested, may be forfeited.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The number of shares of common stock authorized for issuance
under the 1996 Stock Option Plan may be adjusted in the event of
any dividend or other distribution, recapitalization,
reclassification, stock
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
split, reverse stock split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase,
liquidation, dissolution, or sale, transfer, exchange or other
disposition or all or substantially all of the assets of our
company, or exchange of common stock or other securities of our
company, issuance of warrants or other rights to purchase common
stock of our company, or other similar corporate transaction or
event. In the event of the occurrence of any of these
transactions or events, our compensation committee may adjust
the number and kind of authorized shares of common stock under
the plan, the number and kind of shares of common stock subject
to outstanding options and the exercise price with respect to
any option. Additionally, if any of these transactions or events
occurs or any change in applicable laws, regulations or
accounting principles is enacted, the compensation committee may
purchase options from holders thereof or prohibit holders from
exercising options. The compensation committee may also provide
that, upon the occurrence of any of these events, options will
be assumed by the successor or survivor corporation or be
substituted by similar options, rights or awards covering the
stock of the successor or survivor corporation.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The 1996 Stock Option Plan may be wholly or partially amended or
otherwise modified, suspended or terminated at any time or from
time to time by our board of directors or our compensation
committee. However, no action of our compensation committee or
our board of directors that would require stockholder approval
will be effective unless stockholder approval is obtained. No
amendment, suspension or termination of the plan will, without
the consent of the holder of options, alter or impair any rights
or obligations under any options previously granted, unless the
underlying option agreement expressly so provides. No options
may be granted under the plan during any period of suspension or
after its termination.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>2006 Long-Term Stock Incentive Plan</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under our Long-Term Stock Incentive Plan, we may grant stock
options, stock appreciation rights, shares of common stock and
performance units to our employees, consultants, directors and
others persons providing services to our company. The maximum
number of shares of our common stock that we may award annually
under the Long-Term Stock Incentive Plan
is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares,
subject to annual adjustments. In addition, the number of shares
and the price at which shares of our common stock may be
purchased under the Long-Term Stock Incentive Plan may be
adjusted under specified circumstances, such as a stock
dividend, stock split, extraordinary cash dividend,
recapitalization, reorganization, merger, consolidation,
split-up, spin-off, combination or exchange of shares. The
maximum number of shares of common stock relating to stock
options and stock appreciation rights that any individual
participant may receive under the Long-Term Stock Incentive Plan
is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;during
the duration of the plan, which is ten years. In the case of any
grant of any other type of award under the plan that is intended
to be performance-based under Internal Revenue Code rules, the
maximum number of shares of common stock relating to such awards
that any individual participant may receive during the duration
of the Plan
is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
and if such awards are settable in cash no more than $1,000,000
may be subject to such awards granted to any person in a
calendar year.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our compensation committee administers our Long-Term Stock
Incentive Plan. The Long-Term Stock Incentive Plan essentially
gives the compensation committee sole discretion and authority
to select those persons to whom awards will be made, to
designate the number of shares covered by each award, to
establish vesting schedules and terms of each award, to specify
all other terms of awards and to interpret the Long-Term Stock
Incentive Plan.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Options awarded under the Long-Term Stock Incentive Plan may be
either incentive stock options or nonqualified stock options,
but incentive stock options may only be awarded to our
employees. Incentive stock options are intended to satisfy the
requirements of Section&nbsp;422 of the Internal Revenue Code.
Nonqualified stock options are not intended to satisfy
Section&nbsp;422 of the Internal Revenue Code. Stock
appreciation rights may be granted in connection with options or
as free-standing awards. Exercise of an option will result in
the corresponding surrender of the attached stock appreciation
right. The exercise price of an option or stock appreciation
right must be at least equal to the par value of a share of
common stock on the date of grant, and the exercise price of an
incentive stock option must be at least equal to the
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
fair market value of a share of common stock on the date of
grant. Options and stock appreciation rights will be exercisable
in accordance with the terms set by the compensation committee
when granted and will expire on the date determined by the
compensation committee, but in no event later than the tenth
anniversary of the grant date. If a stock appreciation right is
issued in connection with an option, the stock appreciation
right will expire when the related option expires. Special rules
and limitations apply to stock options which are intended to be
incentive stock options.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under our Long-Term Stock Incentive Plan, our compensation
committee may grant common stock to participants. In the
discretion of the committee, stock issued pursuant to the plan
may be subject to vesting or other restrictions. Participants
may receive dividends relating to their shares issued pursuant
to the plan, both before and after the common stock subject to
an award is earned or vested.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The compensation committee may award participants stock units
which entitle the participant to receive value, either in stock
or in cash, as specified by the compensation committee, for the
units at the end of a specified period, based on the
satisfaction of certain other terms and conditions or at a
future date, all to the extent provided under the award. A
participant may be granted the right to receive dividend
equivalents with respect to an award of stock units by the
compensation committee. Our compensation committee establishes
the number of units, the form and timing of settlement, the
performance criteria or other vesting terms and other terms and
conditions of the award at the time the award is made.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unless our compensation committee determines otherwise, in the
event of a change in control of our company that is a merger or
consolidation where our company is the surviving corporation
(other than a merger or consolidation where a majority of the
outstanding shares of our stock are converted into securities of
another entity or are exchanged for other consideration), all
option awards under the Long-Term Stock Incentive Plan will
continue in effect and pertain and apply to the securities which
a holder of the number of shares of our stock then subject to
the option would have been entitled to receive. In the event of
a change of control of our company where we dissolve or
liquidate, or a merger or consolidation where we are not the
surviving corporation or where a majority of the outstanding
shares of our stock is converted into securities of another
entity or are exchanged for other consideration, all option
awards under the Long-Term Stock Incentive Plan will terminate,
and we will either (1)&nbsp;arrange for any corporation
succeeding to our business or assets to issue participants
replacement awards on such corporation&#146;s stock, or
(2)&nbsp;make any outstanding options granted under the plan
fully exercisable at least 20&nbsp;days before the change of
control becomes effective.
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='112'></A>
</DIV>

<!-- link1 "THE CONCURRENT PRIVATE PLACEMENT" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>THE CONCURRENT PRIVATE PLACEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The sale
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our common stock at the closing of this offering to Aman
Ventures, Mark Francis, K. Flynn McDonald, Greg Reyes, Reyes
Family Trust, Van Wagoner Capital Partners, L.P., Van Wagoner
Crossover Fund, L.P. and Marc Weiss, each an existing
stockholder, will each be done in a private placement in
reliance on the exemption from registration provided by
Section&nbsp;4(2) of the Securities Act of 1933 pursuant to
preemptive rights granted to the holders of our preferred stock
(other than individuals that own Series&nbsp;A, B, C, D or E
preferred stock) at the time that they purchased the preferred
stock. Holders of preemptive rights have the right to purchase a
number of shares of common stock that would enable them to
maintain their proportionate ownership interest in CommVault in
connection with any offering of our common stock (including this
offering) or securities convertible into or exchangeable for
shares of our common stock. Holders of preemptive rights granted
in connection with the purchase of Series&nbsp;CC preferred
stock could exercise those rights for less than their
proportionate interest, while all other holders could exercise
only for the full amount of their preemptive right. Aman
Ventures, a holder of shares of our Series&nbsp;CC preferred
stock, exercised its rights for approximately 93% of the total
number of shares that it could purchase in the concurrent
private placement. Holders of preemptive rights do not have the
right to subscribe for more than their proportionate share of
the shares being offered. No holders of preemptive rights, other
than those identified above, exercised those rights in
connection with this offering. By their terms, all existing
rights to subscribe for shares of our common stock and
securities convertible into or exchangeable for shares of our
common stock in future offerings will expire at the closing of
this offering. This prospectus shall not be deemed to be an
offer to sell or a solicitation of an offer to buy any
securities offered in the concurrent private placement.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each recipient of shares in the concurrent private placement is
an existing stockholder of our company. The offer to acquire
securities in the concurrent private placement was made solely
to holders of preferred stock to comply with the preemptive
rights such holders acquired when they purchased shares of our
preferred stock. We did not engage in any general solicitation
of investors or general advertising and no underwriters were
employed in connection with the concurrent private placement.
Each of the recipients of securities in the concurrent private
placement has represented to us in writing that the recipient is
an accredited investor, that it can withstand the entire loss of
its investment, that it understands that the securities issued
in the concurrent private placement have not been registered
under the Securities Act and will therefore be restricted
securities subject to various transfer restrictions and that it
intends to acquire the securities for investment only and not
with a view toward further distribution. Appropriate legends
will be affixed to the share certificates and other instruments
issued in the concurrent private placement. All recipients have
been given the opportunity to ask questions and receive answers
from our representatives concerning our business and financial
affairs and each recipient has represented and acknowledged to
us in writing that it had this opportunity.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">76

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='113'></A>
</DIV>

<!-- link1 "PRINCIPAL AND SELLING STOCKHOLDERS" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>PRINCIPAL AND SELLING STOCKHOLDERS</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table shows the beneficial ownership of our common
stock
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006 by:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    each person who we know beneficially owns more than 5% of our
    common stock;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    our directors and named executive officers;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    all of our directors and executive officers as a group;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the selling stockholders.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Beneficial ownership, which is determined in accordance with the
rules and regulations of the Securities and Exchange Commission,
means the sole or shared power to vote or direct the voting or
to dispose or direct the disposition of our common stock. The
number of shares of our common stock beneficially owned by a
person includes shares of common stock issuable with respect to
options and convertible securities held by the person which are
exercisable or convertible within 60&nbsp;days. The percentage
of our common stock beneficially owned by a person assumes that
the person has exercised all options, and converted all
convertible securities, the person holds which are exercisable
or convertible within 60&nbsp;days, and that no other persons
exercised any of their options or converted any of their
convertible securities. Except as otherwise indicated, the
business address for each of the following persons is
2&nbsp;Crescent Place, Oceanport, New Jersey 07757. Except as
otherwise indicated in the footnotes to the table or in cases
where community property laws apply, we believe that each person
identified in the table possesses sole voting and investment
power over all shares of common stock shown as beneficially
owned by the person. The column entitled &#147;Number of Shares
Beneficially Owned After the Offering&#148; assumes the
conversion of all outstanding shares of our preferred stock into
a total
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock upon the closing of this offering. Percentage of
beneficial ownership before the offering is based
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock outstanding as
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2006
(on an as-converted basis). Percentage of beneficial ownership
after the offering is based
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock outstanding after the completion of this
offering and the concurrent private placement.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Percentage</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Beneficially Owned</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares Being</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Beneficially Owned</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Sold in the</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Beneficially Owned</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Before the</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>After the</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD align="left" nowrap><B>Name and Address of Beneficial Owner</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Before the Offering</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Offering</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>After the Offering</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Offering</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Offering</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    N. Robert Hammer(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Alan G. Bunte(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Louis F. Miceli(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    David West(4)</DIV>
    </TD>
    <TD>&nbsp;</TD>
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</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ron Miiller(5)</DIV>
    </TD>
    <TD>&nbsp;</TD>
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</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Anand Prahlad(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
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</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Suresh&nbsp;P. Reddy(7)</DIV>
    </TD>
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</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Thomas Barry(8)</DIV>
    </TD>
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</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Frank J. Fanzilli,&nbsp;Jr.(9)</DIV>
    </TD>
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</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Armando Geday(10)</DIV>
    </TD>
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<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Keith Geeslin(11)</DIV>
    </TD>
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</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Edward A. Johnson</DIV>
    </TD>
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</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    F. Robert Kurimsky(12)</DIV>
    </TD>
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</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Daniel Pulver</DIV>
    </TD>
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<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gary&nbsp;B. Smith(13)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    David F. Walker</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Putnam OTC and Emerging Growth Fund(14)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    TH Lee, Putnam Investment Trust(14)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">77

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; ">

<TR style="font-size: 1pt;">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
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    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
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    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Percentage</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Beneficially Owned</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares Being</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Beneficially Owned</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Sold in the</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Beneficially Owned</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Before the</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>After the</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD align="left" nowrap><B>Name and Address of Beneficial Owner</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Before the Offering</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Offering</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>After the Offering</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Offering</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Offering</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Putnam Discovery Growth Fund(14)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Putnam World Trust&nbsp;II&nbsp;&#151; Putnam Emerging
    Information Sciences Fund(14)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    DLJ Capital Corporation(15)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    DLJ ESC&nbsp;II, L.P.(15)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    DLJ First ESC, L.P.(15)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    DLJ International Partners, C.V.(15)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    DLJMB Funding, Inc.(15)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    DLJ Merchant Banking Partners, L.P.(15)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    DLJ Offshore Partners, C.V.(15)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sprout IX Plan Investors, L.P.(15)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sprout Capital VII, L.P.(15)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sprout Capital IX, L.P.(15)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sprout CEO Fund, L.P.(15)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sprout Entrepreneurs&#146; Fund, L.P.(15)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sprout Growth&nbsp;II, L.P.(15)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All directors and named executive officers as a group(16)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>*</TD>
    <TD align="left">
    Less than 1%.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Includes options to
    acquire &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock which are exercisable within 60&nbsp;days
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Includes options to
    acquire &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock which are exercisable within 60&nbsp;days
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Includes options to
    acquire &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock which are exercisable within 60&nbsp;days
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    Includes options to
    acquire &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock which are exercisable within 60&nbsp;days
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    Includes options to
    acquire &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock which are exercisable within 60&nbsp;days
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(6)&nbsp;</TD>
    <TD align="left">
    Includes options to
    acquire &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock which are exercisable within 60&nbsp;days
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(7)&nbsp;</TD>
    <TD align="left">
    Includes options to
    acquire &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock which are exercisable within 60&nbsp;days
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(8)&nbsp;</TD>
    <TD align="left">
    Includes options to
    acquire &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock which are exercisable within 60&nbsp;days
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(9)&nbsp;</TD>
    <TD align="left">
    Includes options to
    acquire &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock which are exercisable within 60&nbsp;days
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">78

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>(10)&nbsp;</TD>
    <TD align="left">
    Includes options to
    acquire &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock which are exercisable within 60&nbsp;days
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006.</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(11)&nbsp;</TD>
    <TD align="left">
    Includes options to
    acquire &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock which are exercisable within 60&nbsp;days
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(12)&nbsp;</TD>
    <TD align="left">
    Includes options to
    acquire &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock which are exercisable within 60&nbsp;days
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(13)&nbsp;</TD>
    <TD align="left">
    Includes options to
    acquire &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock which are exercisable within 60&nbsp;days
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>(14)&nbsp;</TD>
    <TD align="left">
    These entities are affiliates of Putnam Investment Management,
    LLC, One Post Office Square, Boston, Massachusetts 02109.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>(15)&nbsp;</TD>
    <TD align="left">
    These entities are affiliates of Credit Suisse Securities
    (USA)&nbsp;LLC, Eleven Madison Avenue, New York, New York
    10010-3629. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
    these shares are subject to a voting trust agreement. The
    trustee of the voting trust is Wells Fargo Bank, N.A. and its
    address
    is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.
    See &#147;Description of Capital Stock&nbsp;&#151; Voting
    Trust&nbsp;Agreement&#148; for more information regarding this
    agreement.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(16)&nbsp;</TD>
    <TD align="left">
    Includes options to acquire shares of common stock which are
    exercisable within 60&nbsp;days
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">79

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='114'></A>
</DIV>

<!-- link1 "CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In September 2003, we issued 4,790,802&nbsp;shares of
Series&nbsp;CC preferred stock to various purchasers as part of
a private placement of our stock. DLJ Capital Corporation,
Sprout Capital&nbsp;IX, L.P., Sprout Entrepreneurs&#146;
Fund&nbsp;L.P. and Sprout&nbsp;IX Plan Investors, L.P., each of
which is an affiliate of Credit Suisse Securities
(USA)&nbsp;LLC, participated in the private placement,
purchasing approximately 1.9&nbsp;million shares of
Series&nbsp;CC preferred stock for an aggregate purchase price
of approximately $5.9&nbsp;million. These stockholders, together
with other affiliates of Credit Suisse Securities
(USA)&nbsp;LLC, beneficially own
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our common
stock on an as-converted basis.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Putnam OTC and Emerging Growth Fund, Putnam World Trust II -
Putnam Emerging Information Sciences Fund, TH&nbsp;Lee, Putnam
Investment Trust and Putnam Discovery Growth Fund, each an
affiliate of Putnam Investment Management, LLC, also
participated in the September 2003 private placement of our
Series&nbsp;CC preferred stock. These Putnam affiliates
purchased approximately 800,000&nbsp;shares for an aggregate
purchase price of approximately $2.5&nbsp;million. These
stockholders beneficially own
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our common
stock on an as-converted basis.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of our Series&nbsp;A, B, C, D and E preferred stock will
receive
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
of the net proceeds to us from the offering, the concurrent
private placement and borrowings under our new term loan in
satisfaction of amounts due upon the conversion of the preferred
stock (including accrued dividends, and assuming the offering is
completed
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006).
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Affiliates of Credit Suisse Securities (USA)&nbsp;LLC will
    receive approximately
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in cash upon the completion of the offering.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Thomas Barry, one of our directors, holds directly
    10,166&nbsp;shares of our Series&nbsp;B preferred stock, which
    will be converted
    into &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of our common stock and the right to receive approximately
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in cash upon the completion of the offering.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Edward&nbsp;A. Johnson, one of our directors, is currently a
    managing director of Credit Suisse Securities (USA)&nbsp;LLC and
    a partner at DLJ&nbsp;Merchant Banking, the corporate leveraged
    buyout arm of Credit Suisse&#146;s asset management business,
    which conducts its activities through affiliates of Credit
    Suisse Securities (USA)&nbsp;LLC. DLJ Merchant Banking funds
    hold 1,299,426&nbsp;shares of our Series&nbsp;A, B, C, D and E
    preferred stock, which will be converted
    into &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of our common stock and the right to receive
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in cash upon the completion of the offering. Mr.&nbsp;Johnson
    will resign his position as a director of our company
    immediately prior to the completion of the offering.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Frank&nbsp;J. Fanzilli, Jr., one of our directors, formerly
    served in several capacities at Credit Suisse Securities (USA)
    LLC. Affiliates of Credit Suisse Securities (USA) LLC hold
    3,044,000&nbsp;shares of our Series&nbsp;A, B, C, D and E
    preferred stock, which will be converted
    into &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of our common stock and the right to receive
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in cash upon the completion of the offering.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Keith Geeslin, one of our directors, was formerly a managing
    partner of the Sprout Group, the venture capital arm of Credit
    Suisse&#146;s asset management business, which conducts its
    activities through affiliates of Credit Suisse Securities
    (USA)&nbsp;LLC. The Sprout Group, together with its affiliates,
    holds 3,044,000&nbsp;shares of our Series&nbsp;A, B, C, D and E
    preferred stock, which will be converted
    into &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of our common stock and the right to receive
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in cash upon the completion of the offering.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Daniel Pulver, one of our directors, was formerly a director of
    Credit Suisse Securities (USA)&nbsp;LLC and a principal at DLJ
    Merchant Banking, the corporate leveraged buyout arm of Credit
    Suisse&#146;s asset management business, which conducts its
    activities through affiliates of Credit Suisse Securities
    (USA)&nbsp;LLC. DLJ Merchant Banking funds hold
    1,299,426&nbsp;shares of our Series&nbsp;A, B, C, D and E
    preferred stock, which will be converted
    into &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of our common stock and the right to receive
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in cash upon the completion of the offering.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    N.&nbsp;Robert Hammer, our chairman, president and chief
    executive officer, was a partner of the Sprout Group until
    November 2003. The Sprout Group, together with its affiliates,
    holds</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">80

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    3,044,000&nbsp;shares of our Series&nbsp;A, B, C, D and E
    preferred stock, which will be converted
    into &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of our common stock and the right to receive
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in cash upon the completion of the offering. Mr.&nbsp;Hammer
    also holds directly 3,333&nbsp;shares of our Series&nbsp;B
    preferred stock and beneficially owns 47,204&nbsp;shares of our
    Series&nbsp;D preferred stock, which will collectively be
    converted
    into &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of our common stock and the right to receive
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in cash upon the completion of the offering.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Louis F. Miceli, our vice president and chief financial officer,
    purchased and holds 1,667&nbsp;shares of our Series&nbsp;B
    preferred stock as a direct investment, which will be converted
    into &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of our common stock and the right to receive approximately
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in cash upon the completion of the offering.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Messrs.&nbsp;Barry, Fanzilli, Geeslin, Pulver, Hammer and Bunte
    also own limited partnership interests in certain investment
    funds associated with the Sprout Group and DLJ&nbsp;Merchant
    Banking, which investment funds collectively
    own &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of our common stock and preferred stock which will be converted
    into the right to
    receive &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of our common stock and
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    in cash upon completion of the offering. The ownership interests
    of Messrs.&nbsp;Barry, Fanzilli, Greeslin, Pulver, Hammer and
    Bunte in these funds in the aggregate is less than 10% of the
    total membership interests in these funds.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, we have entered into agreements to indemnify our
directors and some of our officers in addition to the
indemnification provided for in our certificate of incorporation
and bylaws. These agreements will, among other things, indemnify
our directors and some of our officers for specified expenses
(including attorneys&#146; fees), judgments, fines and
settlement amounts incurred by such person in any action or
proceeding, including any action by or in our right, on account
of services by that person as a director or officer of our
company, as a director or officer of any of our subsidiaries or
as a director or officer of any other company or enterprise that
the person provides services to at our request.
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='115'></A>
</DIV>

<!-- link1 "DESCRIPTION OF CAPITAL STOCK" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>DESCRIPTION OF CAPITAL STOCK</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon the closing of this offering, we will be authorized to
issue &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock, par value $0.01&nbsp;per share,
and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of undesignated preferred stock. The following is a summary
description of the material terms of our capital stock. Our
bylaws and our amended and restated certificate of
incorporation, to be effective after the closing of this
offering, provide further information about our capital stock.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Common Stock</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006, there
were &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock outstanding on an as-converted basis held by
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stockholders
of record. After giving effect to the sale to the public of the
shares of common stock offered in this prospectus and the
concurrent private placement, there will
be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock outstanding.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The holders of common stock are entitled to one vote per share
on all matters to be voted upon by stockholders, including
elections of directors. No holder of common stock may cumulate
votes in voting for our directors. Subject to the rights of any
holders of any outstanding preferred stock, the holders of
common stock are entitled to receive dividends, if any, that the
board of directors may from time to time declare out of funds
legally available. See the discussion under the heading
&#147;Dividend Policy&#148; for more information regarding our
dividend policy. In the event of our liquidation, dissolution or
winding up, the holders of common stock are entitled to share
ratably in all assets remaining after payment of liabilities,
subject to prior distribution rights of preferred stock then
outstanding.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The common stock has no preemptive or conversion rights or other
subscription rights. There are no redemption or sinking fund
provisions applicable to the common stock. All outstanding
shares of common stock are fully paid and nonassessable, and the
shares of common stock to be issued in connection with this
offering will be fully paid and nonassessable.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The rights, preferences and privileges of holders of common
stock are subject to, and may be adversely affected by, the
rights of the holders of shares of any series of preferred stock
which we may designate and issue in the future.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Preferred Stock</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The board of directors has the authority, without action by our
stockholders, to designate and issue preferred stock in one or
more series and to fix the rights, preferences, privileges and
related restrictions, including dividend rights, dividend rates,
conversion rights, voting rights, terms of redemption,
redemption prices, liquidation preferences and the number of
shares constituting any series or the designation of the series.
The issuance of preferred stock may delay, impede or prevent the
completion of a merger, tender offer or other takeover attempt
of our company without further action of our stockholders,
including a tender offer or other transaction that some, or a
majority, of our stockholders might believe to be in their best
interests or in which stockholders may receive a premium for
their stock over its then current market price. At present, we
have no plans to issue any preferred stock following this
offering.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Voting Trust&nbsp;Agreement</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon completion of the offering, Credit Suisse Securities
(USA)&nbsp;LLC and certain of its affiliates will enter into a
voting trust agreement with Wells Fargo Bank, N.A., an
independent trustee, pursuant to
which &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
shares of our common stock, representing
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our common
stock then outstanding, will be deposited into a voting trust
and will thereafter be voted by the voting trustee in accordance
with the voting trust agreement. Subject to specified
exceptions, the voting trust agreement also requires Credit
Suisse Securities (USA) LLC and its affiliates to deliver to the
trustee, and make subject to the voting trust agreement, any
shares of our common stock owned by it or its affiliates that
would cause the aggregate shares of our common stock held by
them to exceed 5% of our common stock then outstanding. Credit
Suisse Securities (USA)&nbsp;LLC and certain of its affiliates
will enter into the
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
voting trust agreement so that Credit Suisse Securities
(USA)&nbsp;LLC and its affiliates will not have voting control
of CommVault for purposes of the federal securities laws.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The voting trust agreement requires that the voting trustee
cause the shares subject to the voting trust to be represented
at all stockholder meetings for purposes of determining a
quorum, but the trustee is not required to vote the shares on
any matter and any determination whether to vote the shares is
required by the voting trust agreement to be made by the trustee
without consultation with Credit Suisse Securities (USA) LLC and
its affiliates. If, however, the trustee votes the trust shares
on any matter subject to a stockholder vote, including proposals
involving the election of directors, change of control and other
significant corporate transactions, the shares will be voted in
the same proportion as votes cast &#147;for&#148; or
&#147;against&#148; those proposals by our other stockholders.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The affiliates of Credit Suisse Securities (USA) LLC that will
become party to the voting trust agreement are also party to
agreements with our company that entitle them to specified
rights relating to the registration of their shares for public
resale. See &#147;&#151;&nbsp;Registration Rights&#148; for more
information regarding these registration rights. Holders of the
shares of our common stock subject to the voting trust agreement
will retain their registration rights and their rights to sell
the shares of our common stock that are subject to the voting
trust agreement. The holders will also retain the right to
receive any dividends or distributions that we may pay on our
common stock. In order for a holder to remove trust shares from
the voting trust, the transfer must be deemed an &#147;eligible
transfer&#148; under the agreement, or the removal must be in
connection with a tender offer to purchase all of the
outstanding shares of our common stock. Generally, an eligible
transfer under the voting trust agreement is a transfer of trust
shares that would not (i)&nbsp;cause the aggregate number of
shares of our common stock held by Credit Suisse Securities
(USA)&nbsp;LLC and its affiliates to exceed 5% of our common
stock then outstanding or (ii)&nbsp;cause the entity receiving
the shares to be an affiliate of the company within the meaning
of Rule&nbsp;144 of the Securities Act. The voting trust
agreement will also permit the parties to the agreement to make
<FONT style="white-space: nowrap">distributions-in</FONT>-kind
of shares of our common stock subject to the voting trust
agreement upon the satisfaction of specified requirements. The
voting trust agreement will terminate upon:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the tenth anniversary of the agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the written election of Credit Suisse First Boston Private
    Equity, Inc., an affiliate of Credit Suisse Securities
    (USA)&nbsp;LLC, Credit Suisse Securities (USA)&nbsp;LLC or the
    holders of the majority of the shares of common stock subject to
    the voting trust agreement and the satisfaction of specified
    requirements;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the transfer of all of the shares of common stock subject to the
    voting trust agreement in a matter permitted thereunder.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The voting trust agreement provides Credit Suisse First Boston
Private Equity, Inc., Credit Suisse Securities (USA)&nbsp;LLC
and the holders of a majority of the shares of common stock
subject to the voting trust agreement with the right to
terminate the voting trust agreement subject to the satisfaction
of specified requirements, including that, immediately after
giving effect to such termination, Credit Suisse First Boston
Private Equity, Inc. and its affiliates will not be affiliates
of CommVault within the meaning of Rule&nbsp;144 of the
Securities Act. The right to terminate the voting trust
agreement facilitates its termination at a time prior to the
tenth anniversary of the agreement if appropriate under the
circumstances.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Registration Rights</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have entered into registration rights agreements that provide
some of our stockholders both demand registration rights and
piggyback registration rights. We refer to shares of our common
stock that are subject to registration rights agreements as
&#147;registrable securities.&#148;
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Demand Registration Rights.</I> The holders
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;registrable
securities have rights, at their request, to have their shares
registered for resale under the Securities Act. Four groups of
holders of
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
registrable securities may demand the registration of their
shares on up to two occasions for each group. No demand
registration rights may be exercised for 180&nbsp;days after the
date of this prospectus.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Registration on
Form&nbsp;<FONT style="white-space: nowrap">S-3.</FONT></I> In
addition to the demand registrations discussed above, holders of
registrable securities may require that we register their shares
for public resale on
Form&nbsp;<FONT style="white-space: nowrap">S-3</FONT> or
similar short-form registration provided the value of the
securities to be registered is at least $1,000,000 and our
company is
Form&nbsp;<FONT style="white-space: nowrap">S-3</FONT> eligible.
These rights cannot be exercised in the 12-month period after
the date of this prospectus, or more than once in any 12-month
period with respect to shares held by certain holders of
registrable securities.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Piggyback Registration Rights.</I> The holders
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;registrable
securities have rights to have their shares registered for
resale under the Securities Act if we register any of our
securities, either for our own account or for the account of
other stockholders, subject to the right of underwriters to
limit the number of shares included in an underwritten offering.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All holders with registrable securities have agreed not to
exercise their demand registration rights until 180&nbsp;days
following the date of this prospectus without the consent of
Credit Suisse Securities (USA) LLC and Goldman, Sachs&nbsp;&#38;
Co. However, if the reported last sale price of our common stock
on The NASDAQ National Market is at least 50% greater than the
offering price per share for 20 of the 30&nbsp;trading days
ending on the last trading day before the 100th day after the
date of this prospectus, then on the 101st day after the date of
this prospectus holders with registerable securities could
exercise their demand registration rights with respect to 20% of
the registrable securities that they own that are subject to the
<FONT style="white-space: nowrap">180-day</FONT> restriction. We
will bear one-half of all reasonable expenses of any demand
registration, piggyback registration or registration on
Form&nbsp;S-3 by our Series AA holders, including all
registration fees and the fees and expenses of the holder&#146;s
counsel, but not including underwriting discounts, selling
commissions and stock transfer taxes relating to the registrable
securities. We will bear all reasonable expenses of any
piggyback registration by our Series&nbsp;BB holders, including
all registration fees, but not including the fees and expenses
of the holder&#146;s counsel or underwriting discounts, selling
commissions and stock transfer taxes relating to the registrable
securities. We will bear all reasonable expenses of any demand
registration, piggyback registration or registration on
Form&nbsp;S-3 by our Series CC holders, but not including the
fees and expenses of the holder&#146;s counsel or underwriting
discounts, selling commission and stock transfer taxes relating
to the registrable securities.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Anti-Takeover Effects of Provisions of our Certificate of
Incorporation and Bylaws</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Board of Directors</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our certificate of incorporation and bylaws to be effective on
the closing of this offering provide:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    that the board of directors be divided into three classes, as
    nearly equal in size as possible, with staggered three-year
    terms;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    that directors may be removed only for cause by the affirmative
    vote of the holders of at least
    66<FONT style="font-size: 70%"><SUP>2</SUP></FONT>/<FONT style="font-size: 60%">3
    </FONT>% of the shares of our capital stock entitled to
    vote;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    that any vacancy on the board of directors, however occurring,
    including a vacancy resulting from an enlargement of the board,
    may only be filled by vote of a majority of the directors then
    in office.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These provisions could make it more difficult for a third party
to acquire us or discourage a third party from acquiring us.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Stockholder Actions and Special Meetings</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our certificate of incorporation and bylaws also provide that:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    any action required or permitted to be taken by the stockholders
    at an annual meeting or special meeting of stockholders may only
    be taken if it is properly brought before such meeting and may
    not be taken by written action in lieu of a meeting;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    special meetings of the stockholders may only be called by the
    chairman of the board of directors, our chief executive officer,
    or by the board of directors.</TD>
</TR>

</TABLE>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our bylaws provide that in order for any matter to be considered
&#147;properly brought&#148; before a meeting, a stockholder
must comply with requirements regarding advance notice to us.
These provisions could delay stockholder actions which are
favored by the holders of a majority of our outstanding voting
securities until the next stockholders meeting. These provisions
may also discourage another person or entity from making a
tender offer for our common stock because such person or entity,
even if it acquired a majority of our outstanding voting
securities, would be able to take action as a stockholder (such
as electing new directors or approving a merger) only at a duly
called stockholders meeting and not by written consent.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Board Consideration of Change of Control
    Transactions</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our certificate of incorporation empowers our board of
directors, when considering a tender offer or merger or
acquisition proposal, to take into account, in addition to
potential economic benefits to stockholders, factors such as:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a comparison of the proposed consideration to be received by
    stockholders in relation to the then current market price of our
    capital stock;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the impact of the transaction on our employees, suppliers and
    customers and its effect on the communities in which we operate.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Amendment</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Delaware law provides that the affirmative vote of a majority of
the shares entitled to vote on any matter is required to amend a
corporation&#146;s certificate of incorporation or bylaws,
unless a corporation&#146;s certificate of incorporation or
bylaws, as the case may be, requires a greater percentage. Our
certificate of incorporation requires the affirmative vote of
the holders of at least
66<FONT style="font-size: 70%"><SUP>2</SUP></FONT>/<FONT style="font-size: 60%">3</FONT>%
of the shares of our capital stock entitled to vote to amend or
repeal any of the foregoing provisions of our certificate of
incorporation. Our bylaws may be amended or repealed by a
majority vote of the board of directors or the holders of at
least
66<FONT style="font-size: 70%"><SUP>2</SUP></FONT>/<FONT style="font-size: 60%">3
</FONT>% of the shares of our capital stock issued and
outstanding and entitled to vote. The stockholder vote would be
in addition to any separate class vote that might in the future
be required pursuant to the terms of any series preferred stock
that might be outstanding at the time any such amendments are
submitted to stockholders.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Preferred Stock</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The authorization of undesignated preferred stock makes it
possible for the board of directors to issue preferred stock
with voting or other rights or preferences that could impede the
success of any attempt to change the control of our company.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These and other provisions may deter hostile takeovers or delay
changes in control or management of our company.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Delaware Business Combination Statute</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section&nbsp;203 of the Delaware General Corporation Law
provides that, subject to exceptions set forth therein, an
interested stockholder of a Delaware corporation shall not
engage in any business combination, including mergers or
consolidations or acquisitions of additional shares of the
corporation, with the corporation for a three-year period
following the date that the stockholder becomes an interested
stockholder unless:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    prior to that date, the board of directors of the corporation
    approved either the business combination or the transaction
    which resulted in the stockholder becoming an interested
    stockholder;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    upon consummation of the transaction which resulted in the
    stockholder becoming an interested stockholder, the interested
    stockholder owned at least 85% of the voting stock of the
    corporation outstanding at the time the transaction commenced,
    other than statutorily excluded shares;&nbsp;or</TD>
</TR>

</TABLE>

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    on or subsequent to such date, the business combination is
    approved by the board of directors of the corporation and
    authorized at an annual or special meeting of stockholders by
    the affirmative vote of at least
    66<FONT style="font-size: 70%"><SUP>2</SUP></FONT>/<FONT style="font-size: 60%">3
    </FONT>% of the outstanding voting stock which is not owned by
    the interested stockholder.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except as otherwise set forth in Section&nbsp;203, an interested
stockholder is defined to include:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    any person that is the owner of 15% or more of the outstanding
    voting stock of the corporation, or is an affiliate or associate
    of the corporation and was the owner of 15% or more of the
    outstanding voting stock of the corporation at any time within
    three years immediately prior to the date of
    determination;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the affiliates and associates of any such person.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section&nbsp;203 may make it more difficult for a person who
would be an interested stockholder to effect various business
combinations with a corporation for a three-year period. We have
not elected to be exempt from the restrictions imposed under
Section&nbsp;203. The provisions of Section&nbsp;203 may
encourage persons interested in acquiring us to negotiate in
advance with our board because the stockholder approval
requirement would be avoided if a majority of the directors then
in office approves either the business combination or the
transaction which results in any such person becoming an
interested stockholder. These provisions also may have the
effect of preventing changes in our management. It is possible
that these provisions could make it more difficult to accomplish
transactions which our stockholders may otherwise deem to be in
their best interests.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Transfer Agent and Registrar</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The transfer agent and registrar for the common stock is
Registrar and Transfer Company in Cranford, New Jersey.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>NASDAQ National Market Listing</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have applied to have our common stock approved for listing on
The NASDAQ National Market under the symbol &#147;CVLT.&#148;
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">86

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='116'></A>
</DIV>

<!-- link1 "SHARES ELIGIBLE FOR FUTURE SALE" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>SHARES ELIGIBLE FOR FUTURE SALE</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Before this offering, there has not been any public market for
our common stock, and we cannot predict the effect, if any, that
market sales of shares of our common stock or the availability
of shares of common stock for sale will have on the market price
of our common stock. Nevertheless, sales of substantial amounts
of our common stock in the public market, or the perception that
such sales could occur, could adversely affect the market price
of our common stock and could impair our future ability to raise
capital through the sale of equity securities.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon completion of this offering and the concurrent private
placement, we will have a total
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock outstanding, assuming no outstanding options are
exercised
after &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006. Shares sold in this offering will be freely tradable
without restriction or further registration under the Securities
Act, except for any shares which may be held or acquired by our
&#147;affiliates,&#148; as that term is defined in Rule&nbsp;144
promulgated under the Securities Act, which shares will be
subject to the volume limitations and other restrictions of
Rule&nbsp;144 described below. The
remaining &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock outstanding will be deemed &#147;restricted
securities&#148; as defined under Rule&nbsp;144. Restricted
securities may be sold in the public market only if registered
under the Securities Act or pursuant to an exemption from such
registration, including, among others, the exemptions provided
by Rules&nbsp;144, 144(k) and 701 promulgated under the
Securities Act, summarized below.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the <FONT style="white-space: nowrap">lock-up</FONT>
agreements described below and the provisions of Rules&nbsp;144,
144(k) and 701, additional shares will be available for sale in
the public market as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="79%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD align="center" nowrap><B>Maximum Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD align="center" nowrap><B>of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Date</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    After the date of this prospectus</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    After 90&nbsp;days from the date of this prospectus (subject, in
    some cases, to volume limitations and contractual vesting
    schedules)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    After 100&nbsp;days from the date of this prospectus (subject,
    in some cases, to volume limitations and contractual vesting
    schedules and subject to the conditions for early release from
    the lock-up agreements described below)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    After 180&nbsp;days from the date of this prospectus (subject,
    in some cases, to volume limitations and contractual vesting
    schedules)</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, as
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006, options to purchase a total
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock are outstanding, of
which &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;are
vested and will be exercisable concurrent with this offering
(without regard to the
<FONT style="white-space: nowrap">lock-up</FONT> period
described below).
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<FONT style="white-space: nowrap"><B>Lock-up</FONT>
Agreements</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have agreed that we will not offer, sell, contract to sell,
pledge or otherwise dispose of, directly or indirectly, or file
with the Securities and Exchange Commission a registration
statement under the Securities Act relating to, any additional
shares of our common stock or securities convertible into or
exchangeable or exercisable for any of our common stock, or
publicly disclose the intention to make any such offer, sale,
pledge, disposition or filing, without the prior written consent
of Credit Suisse Securities&nbsp;(USA) LLC and Goldman,
Sachs&nbsp;&#38; Co. for a period of 180&nbsp;days after the
date of this prospectus, except for:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    grants of employee stock options pursuant to our stock option
    plan or long term incentive plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    issuances of common stock pursuant to the exercise of such
    options;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the delivery of common stock to holders of our Series&nbsp;A, B,
    C, D, E, AA, BB or CC preferred stock upon the conversion of the
    preferred stock into common stock;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the delivery of common stock in effectuation of
    the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reverse
    stock split.</TD>
</TR>

</TABLE>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Further, in the event that (1)&nbsp;during the last 17&nbsp;days
of the <FONT style="white-space: nowrap">180-day</FONT>
&#147;lock-up&#148; period we release earnings results or
(2)&nbsp;prior to the expiration of the
<FONT style="white-space: nowrap">180-day</FONT>
&#147;lock-up&#148; period we announce that we will release
earnings results during the
<FONT style="white-space: nowrap">16-day</FONT> period beginning
on the last day of such &#147;lock-up&#148; period, then in
either case such &#147;lock-up&#148; period will be extended
until the expiration of the
<FONT style="white-space: nowrap">18-day</FONT> period beginning
on the date of the release of the earnings results, unless
Credit Suisse Securities&nbsp;(USA) LLC and Goldman,
Sachs&nbsp;&#38; Co. waive, in writing, such extension.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our officers and directors and substantially all of our
stockholders have agreed that they will not:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    offer, sell, contract to sell, pledge or otherwise dispose of,
    directly or indirectly, any shares of our common stock or
    securities convertible into or exchangeable or exercisable for
    any shares of our common stock, or enter into a transaction
    which would have the same effect;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    enter into any swap, hedge or other arrangement that transfers,
    in whole or in part, any of the economic consequences of
    ownership of our common stock, whether any such transaction is
    to be settled by delivery of our common stock or other
    securities, in cash or otherwise;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    publicly disclose the intention to make any such offer, sale,
    pledge or disposition, or to enter into any such transaction,
    swap, hedge or other arrangement;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
without, in each case, the prior written consent of Credit
Suisse Securities (USA) LLC and Goldman, Sachs&nbsp;&#38; Co.
for a period of 180&nbsp;days after the date of this prospectus.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
However, if the reported last sale price of our common stock on
The NASDAQ National Market is at least 50% greater than the
offering price per share for 20 of the 30 trading days ending on
the last trading day before the 100th&nbsp;day after the date of
this prospectus, then 20% of the shares of our common stock
owned by the officers, directors and stockholders described
above that are subject to the
<FONT style="white-space: nowrap">180-day</FONT> restrictions
described above,
or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares,
will be released from these restrictions. Further, in the event
that (1)&nbsp;during the last 17&nbsp;days of either the initial
<FONT style="white-space: nowrap">100-day</FONT>
&#147;lock-up&#148; period or the full
<FONT style="white-space: nowrap">180-day</FONT>
&#147;lock-up&#148; period we release earnings results or
(2)&nbsp;prior to the expiration of either the initial
<FONT style="white-space: nowrap">100-day</FONT>
&#147;lock-up&#148; period or the full
<FONT style="white-space: nowrap">180-day</FONT>
&#147;lock-up&#148; period we announce that we will release
earnings results during the
<FONT style="white-space: nowrap">16-day</FONT> period beginning
on the last day of each &#147;lock-up&#148; period, then in
either case the &#147;lock-up&#148; period will be extended
until the expiration of the
<FONT style="white-space: nowrap">18-day</FONT> period beginning
on the date of the release of the earnings results, unless
Credit Suisse Securities (USA)&nbsp;LLC and Goldman,
Sachs&nbsp;&#38; Co. waive, in writing, the extension. The
foregoing &#147;lock-up&#148; provisions applicable to our
officers, directors and substantially all of our stockholders do
not prohibit the exercise of options held by them or the
conversion of any shares of our Series&nbsp;A, B, C, D, E, AA,
BB or CC preferred stock held by them into our common stock.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Credit Suisse Securities (USA)&nbsp;LLC and Goldman,
Sachs&nbsp;&#38; Co. have advised us that they have no present
intent or arrangement to release any shares subject to a
lock-up, and will consider the release of any
<FONT style="white-space: nowrap">lock-up</FONT> on a
case-by-case basis. Upon a request to release any shares subject
to a lock-up, Credit Suisse Securities (USA)&nbsp;LLC and
Goldman, Sachs&nbsp;&#38; Co. would consider the particular
circumstances surrounding the request, including, but not
limited to, the length of time before the
<FONT style="white-space: nowrap">lock-up</FONT> expires, the
number of shares requested to be released, reasons for the
request, the possible impact on the market for our common stock
and whether the holder of our shares requesting the release is
an officer, director or other affiliate of ours.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Rule&nbsp;144</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In general, under Rule&nbsp;144 as currently in effect, a
person, including an affiliate, who has beneficially owned
shares for at least one year is entitled to sell, within any
three-month period commencing 90&nbsp;days after the date of
this prospectus, a number of shares that does not exceed the
greater of:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    one percent of the number of shares of common stock then
    outstanding
    (approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    immediately after this offering);&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the average weekly trading volume of our common stock on The
    NASDAQ National Market during the four calendar weeks before a
    notice of the sale on Form&nbsp;144 is filed.</TD>
</TR>

</TABLE>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sales under Rule&nbsp;144 are also subject to specified manner
of sale provisions and notice requirements and to the
availability of specified public information about our company.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Rule&nbsp;144(k)</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under Rule&nbsp;144(k), a person who is not deemed to have been
our affiliate at any time during the 90&nbsp;days preceding a
sale and who has beneficially owned the shares proposed to be
sold for at least two years, including the holding period of any
prior owner except an affiliate of us, is entitled to sell those
shares without complying with the manner of sale, public
information, volume limitation or notice provisions of
Rule&nbsp;144.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Rule&nbsp;701</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shares of our common stock issued in reliance on Rule&nbsp;701,
such as those shares acquired upon exercise of options granted
under our stock plans or other compensatory arrangement, are
also restricted and, beginning 90&nbsp;days after the effective
date of this prospectus, may be sold by stockholders other than
our affiliates subject only to the manner of sale provisions of
Rule&nbsp;144 and by affiliates under Rule&nbsp;144 without
compliance with its one-year holding requirement.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Options</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shortly after the closing of this offering, we intend to file a
registration statement on
Form&nbsp;<FONT style="white-space: nowrap">S-8</FONT> under the
Securities Act to register for resale all shares of common stock
issued or issuable under our 1996 Stock Option Plan and our 2006
Long-Term Stock Incentive Plan and not otherwise freely
transferable. Accordingly, shares covered by that registration
statement will be eligible for sale in the public markets,
unless those options are subject to vesting restrictions.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Registration Rights</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Following this offering and, in some cases, the expiration of
the <FONT style="white-space: nowrap">lock-up</FONT> period
described above, certain holders of shares of our outstanding
common stock will have demand registration rights with respect
to their shares of common stock that will enable them to require
us to register their shares of common stock under the Securities
Act, and they will also have rights to participate in any of our
future registrations of securities by us. See &#147;Description
of Capital Stock&nbsp;&#151; Registration Rights&#148; for more
information regarding these registration rights.
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='117'></A>
</DIV>

<!-- link1 "CERTAIN UNITED STATES FEDERAL TAX CONSIDERATIONS TO NON-U.S. HOLDERS" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>CERTAIN UNITED STATES FEDERAL TAX CONSIDERATIONS TO
<FONT style="white-space: nowrap">NON-U.S.&nbsp;</FONT>HOLDERS</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This discussion describes the material United States federal
income and estate tax consequences of the ownership and
disposition of shares of our common stock by a
<FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>holder.
When we refer to a
<FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>holder,
we mean a beneficial owner of our common stock that, for
U.S.&nbsp;federal income tax purposes, is other than:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a citizen or resident of the United States;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a corporation (including for this purpose any other entity
    treated as a corporation for U.S.&nbsp;federal income tax
    purposes) created or organized in or under the laws of the
    United States or any political subdivision thereof;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    an estate the income of which is subject to U.S.&nbsp;federal
    income taxation regardless of its source;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a trust that is subject to the primary supervision of a
    U.S.&nbsp;court and to the control of one or more
    U.S.&nbsp;persons, or that has a valid election in effect under
    applicable U.S.&nbsp;Treasury regulations to be treated as a
    U.S.&nbsp;person.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a partnership (including for this purpose any other entity,
either organized within or without the United States, treated as
a partnership for U.S.&nbsp;federal income tax purposes) holds
the shares, the tax treatment of a partner as a beneficial owner
of the shares generally will depend upon the status of the
partner and the activities of the partnership. Foreign
partnerships also generally are subject to special U.S.&nbsp;tax
documentation requirements.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>This discussion does not consider the specific facts and
circumstances that may be relevant to a particular
<FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>holder
and does not address the treatment of a
<FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>holder
under the laws of any state, local or foreign taxing
jurisdiction, nor does it discuss special tax provisions which
may apply to you if you relinquished United States citizenship
or residence. This section is based on the tax laws of the
United States, including the Internal Revenue Code, existing and
proposed regulations and administrative and judicial
interpretations, all as currently in effect. These laws are
subject to change, possibly on a retroactive basis. This
discussion is limited to
<FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>holders
who hold shares of common stock as capital assets. If you are an
individual, you may, in many cases, be deemed to be a resident
alien, as opposed to a nonresident alien, by virtue of being
present in the United States for at least 31&nbsp;days in the
calendar year and for an aggregate of at least 183&nbsp;days
during a three-year period ending in the current calendar year.
For these purposes, all the days present in the current year,
one-third of the days present in the immediately preceding year
and one-sixth of the days present in the second preceding year
are counted. Resident aliens are subject to United States
federal income tax as if they were United States citizens.</I>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>You should consult a tax advisor regarding the
U.S.&nbsp;federal tax consequences of acquiring, holding and
disposing of our common stock in your particular circumstances,
as well as any tax consequences that may arise under the laws of
any state, local or foreign taxing jurisdiction.</I>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Dividends</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We currently do not intend to pay dividends with respect to our
common stock. However, if we were to pay dividends with respect
to our common stock, dividends paid to a
<FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>holder,
except as described below, would be subject to withholding of
U.S.&nbsp;federal income tax at a 30% rate or at a lower rate if
the holder is eligible for the benefits of an income tax treaty
that provides for a lower rate (and the holder has furnished to
us a valid Internal Revenue Service
Form&nbsp;<FONT style="white-space: nowrap">W-8BEN</FONT> or an
acceptable substitute form upon which you certify, under
penalties of perjury, your status as a non-United States person
and your entitlement to the lower treaty rate with respect to
such payments).
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If dividends paid to a
<FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>holder
are &#147;effectively connected&#148; with such holder&#146;s
conduct of a trade or business within the United States, and, if
required by a tax treaty, the dividends are attributable to a
permanent establishment that the
<FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>holder
maintains in the United States, we generally are not required to
withhold tax from the dividends, provided that the
<FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>holder
has furnished to us a valid Internal Revenue Service
Form&nbsp;<FONT style="white-space: nowrap">W-8ECI</FONT> or an
acceptable substitute form upon which you certify,
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
under penalties of perjury, your status as a non-United States
person and your entitlement to this exemption from withholding.
Instead, &#147;effectively connected&#148; dividends are taxed
at rates applicable to United States persons. If a
<FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>holder is
a corporation, &#147;effectively connected&#148; dividends that
it receives may, under certain circumstances, be subject to an
additional &#147;branch profits tax&#148; at a 30% rate or at a
lower rate if the holder is eligible for the benefits of an
income tax treaty that provides for a lower rate.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You must comply with the certification procedures described
above, or, in the case of payments made outside the United
States with respect to an offshore account, certain documentary
evidence procedures, directly or under certain circumstances
through an intermediary, to obtain the benefits of a reduced
rate under an income tax treaty with respect to dividends paid
with respect to your common stock. In addition, if you are
required to provide an Internal Revenue Service Form&nbsp;W-8ECI
or successor form, as discussed above, you must also provide
your tax identification number.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If you are eligible for a reduced rate of United States
withholding tax pursuant to an income tax treaty, you may obtain
a refund of any excess amounts withheld by filing an appropriate
claim for refund with the Internal Revenue Service.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Gain on Disposition of Common Stock</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT style="white-space: nowrap">Non-U.S.&nbsp;</FONT>holders
generally will not be subject to United States federal income
tax on gain that they recognize on a disposition of our common
stock unless:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the holder is an individual who is present in the United States
    for 183&nbsp;days or more in the taxable year of disposition and
    certain other conditions are met;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    such gain is effectively connected with the holder&#146;s
    conduct of a trade or business within the United States and, if
    certain tax treaties apply, is attributable to a
    U.S.&nbsp;permanent establishment maintained by the holder (and,
    in which case, if you are a foreign corporation, you may be
    subject to an additional branch profits tax equal to 30% or a
    lower rate as may be specified by an applicable income tax
    treaty);</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the holder is subject to the Internal Revenue Code provisions
    applicable to certain U.S.&nbsp;expatriates;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    we are or have been a &#147;U.S.&nbsp;real property holding
    corporation&#148; for U.S.&nbsp;federal income tax purposes and,
    assuming that our common stock is deemed to be &#147;regularly
    traded on an established securities market,&#148; the holder
    held, directly or indirectly at any time during the five-year
    period ending on the date of disposition or such shorter period
    that such shares were held, more than five percent of our common
    stock. We have not been, are not and do not anticipate becoming,
    a United States real property holding corporation for United
    States federal income tax purposes.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Special rules may apply to certain
<FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>holders,
such as &#147;controlled foreign corporations,&#148;
&#147;passive foreign investment companies&#148; and
corporations that accumulate earnings to avoid U.S.&nbsp;federal
income tax. Such entities should consult their own tax advisors
to determine the U.S.&nbsp;federal, state, local and other tax
consequences that may be relevant to them.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Federal Estate Taxes</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If our common stock is held by a
<FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>holder at
the time of death, such stock will be included in the
holder&#146;s gross estate for U.S.&nbsp;federal estate tax
purposes, unless an applicable estate tax treaty provides
otherwise.
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Backup Withholding and Information Reporting</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A <FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>holder
generally will be exempt from backup withholding and information
reporting with respect to dividend payments and the payment of
the proceeds from the sale of our common stock effected at a
United States office of a broker, as long as:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the income associated with such payments is otherwise exempt
    from U.S.&nbsp;federal income tax;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the payor or broker does not have actual knowledge or reason to
    know that you are a U.S.&nbsp;person;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    you have furnished to the payor or broker a valid Internal
    Revenue Service
    Form&nbsp;<FONT style="white-space: nowrap">W-8BEN</FONT> or an
    acceptable substitute form upon which you certify, under
    penalties of perjury, that you are a
    <FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>person,
    or other documentation upon which it may rely to treat the
    payments as made to a
    <FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>person in
    accordance with U.S.&nbsp;Treasury regulations (or you otherwise
    establish an exemption).</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Payment of the proceeds from the sale of our common stock
effected at a foreign office of a broker generally will not be
subject to information reporting or backup withholding. However,
a sale of our common stock that is effected at a foreign office
of a broker will be subject to information reporting and backup
withholding if:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the proceeds are transferred to an account maintained by you in
    the United States;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the payment of proceeds or the confirmation of the sale is
    mailed to you at a United States address;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the sale has some other specified connection with the United
    States as provided in U.S.&nbsp;Treasury regulations,</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
unless the documentation requirements described above are met or
you otherwise establish an exemption and the broker does not
have actual knowledge or reason to know that you are a
U.S.&nbsp;person.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, a sale of our common stock will be subject to
information reporting if it is effected at a foreign office of a
broker that is:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a U.S.&nbsp;person;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a controlled foreign corporation for U.S.&nbsp;tax purposes;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a foreign person 50% or more of whose gross income is
    effectively connected with the conduct of a U.S.&nbsp;trade or
    business for a specified period;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    a foreign partnership, if at any time during its tax year one or
    more of its partners are &#147;U.S.&nbsp;persons,&#148; as
    defined in U.S.&nbsp;Treasury regulations, who in the aggregate
    hold more than 50% of the income or capital interest in the
    partnership, or such foreign partnership is engaged in the
    conduct of a U.S.&nbsp;trade or business,</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
unless the documentation requirements described above are met or
a <FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>holder
otherwise establishes an exemption and the broker does not have
actual knowledge or reason to know that the holder is a United
States person. Backup withholding will apply if the sale is
subject to information reporting and the broker has actual
knowledge that the holder is a U.S.&nbsp;person.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A <FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>holder
generally may obtain a refund of any amounts withheld under the
backup withholding rules that exceed its income tax liability by
filing an appropriate refund claim with the Internal Revenue
Service.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the foregoing, we must report annually to the IRS
and to each
<FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>holder on
Internal Revenue Service
Form&nbsp;<FONT style="white-space: nowrap">1042-S</FONT> the
entire amount of any distribution and the tax withheld,
regardless of whether withholding was required. This information
may also be made available to the tax authorities in the country
in which the
<FONT style="white-space: nowrap">non-U.S.&nbsp;</FONT>holder
resides under the provisions of an applicable income tax treaty.
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">92

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='118'></A>
</DIV>

<!-- link1 "UNDERWRITING" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>UNDERWRITING</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the terms and subject to the conditions contained in an
underwriting agreement
dated &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006, we and the selling stockholders have agreed to sell to the
underwriters named below, for whom Credit Suisse Securities
(USA)&nbsp;LLC and Goldman, Sachs&nbsp;&#38; Co. are acting as
representatives, the following respective numbers of shares of
common stock:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2" align="left" nowrap><B>Underwriter</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of Shares</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Credit Suisse Securities (USA)&nbsp;LLC</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Goldman, Sachs&nbsp;&#38; Co.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    C.E. Unterberg, Towbin, LLC</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Merrill Lynch, Pierce, Fenner&nbsp;&#38; Smith<BR>
    Incorporated</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    RBC Capital Markets Corporation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Thomas Weisel Partners LLC</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriting agreement provides that the underwriters are
obligated to purchase all the shares of common stock in the
offering if any are purchased, other than those shares covered
by the over-allotment option described below. The underwriting
agreement also provides that if an underwriter defaults, the
purchase commitments of non-defaulting underwriters may be
increased or the offering may be terminated.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The selling stockholders have granted to the underwriters a
<FONT style="white-space: nowrap">30-day</FONT> option to
purchase on a pro rata basis up to additional shares at the
initial public offering price less the underwriting discounts
and commissions. The option may be exercised only to cover any
over-allotments of common stock.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriters propose to offer the shares of common stock
initially at the public offering price on the cover page of this
prospectus and to selling group members at that price less a
selling concession of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share. The underwriters and selling group members may allow a
discount of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share on sales to other broker/dealers. After the initial public
offering, the representatives may change the public offering
price and concession and discount to broker/dealers.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table summarizes the compensation and estimated
expenses we and the selling stockholders will pay:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="36%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Per Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Without</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>With</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Without</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>With</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Over-allotment</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Over-allotment</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Over-allotment</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Over-allotment</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Underwriting Discounts and Commissions paid by us</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Expenses payable by us</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Underwriting Discounts and Commissions paid by the selling
    stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Expenses payable by the selling stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriters will not confirm sales to any accounts over
which they exercise discretionary authority without first
receiving a written consent from those accounts.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Affiliates of Credit Suisse Securities&nbsp;(USA) LLC own 10% or
more of our common stock and 10% or more of the aggregate of all
classes of our preferred stock and, upon consummation of the
offering and related transactions, will own 10% or more of our
common stock. The Company will also pay to affiliates of Credit
Suisse Securities&nbsp;(USA) LLC
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
from the proceeds of this offering, the concurrent private
placement and borrowings under our new term loan
(or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the total proceeds) in
satisfaction of the amounts due to the affiliates upon the
conversion into common stock of their holdings of our
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">93

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
Series&nbsp;A, B, C, D and E preferred stock (including accrued
dividends, and assuming the offering is completed
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2006).
Thus, the underwriters may be deemed to have a &#147;conflict of
interest&#148; under the applicable provisions of Rule&nbsp;2720
of the Conduct Rules of the National Association of Securities
Dealers, Inc. Accordingly, this offering will be made in
compliance with the applicable provisions of Rule&nbsp;2720 of
the Conduct Rules. Rule&nbsp;2720 requires that the initial
public offering price of the shares of common stock not be
higher than that recommended by a &#147;qualified independent
underwriter,&#148; as defined by the National Association of
Securities Dealers, Inc. Goldman, Sachs&nbsp;&#38; Co. has
served in that capacity and performed due diligence
investigations and reviewed and participated in the preparation
of the registration statement of which this prospectus forms a
part. Goldman, Sachs&nbsp;&#38; Co. has received $10,000 from us
as compensation for such role.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have agreed that we will not offer, sell, contract to sell,
pledge or otherwise dispose of, directly or indirectly, or file
with the Securities and Exchange Commission a registration
statement under the Securities Act relating to, any shares of
our common stock or securities convertible into or exchangeable
or exercisable for any shares of our common stock, or publicly
disclose the intention to make any offer, sale, pledge,
disposition or filing, without the prior written consent of the
representatives for a period of 180&nbsp;days after the date of
this prospectus, except for:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    issuances of common stock pursuant to the exercise of options
    outstanding on the date of this prospectus;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    grants of employee stock options pursuant to our stock option
    plan or long term incentive plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    issuances of common stock pursuant to the exercise of such
    options;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the delivery of common stock to holders of our Series&nbsp;A, B,
    C, D, E, AA, BB or CC preferred stock upon the conversion of
    such preferred stock into common stock; and</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the delivery of common stock in effectuation of
    the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reverse
    stock split.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Further, in the event that (1)&nbsp;during the last 17&nbsp;days
of the <FONT style="white-space: nowrap">180-day</FONT>
&#147;lock-up&#148; period we release earnings results or
(2)&nbsp;prior to the expiration of the
<FONT style="white-space: nowrap">180-day</FONT>
&#147;lock-up&#148; period we announce that we will release
earnings results during the
<FONT style="white-space: nowrap">16-day</FONT> period beginning
on the last day of such &#147;lock-up&#148; period, then in
either case such &#147;lock-up&#148; period will be extended
until the expiration of the
<FONT style="white-space: nowrap">18-day</FONT> period beginning
on the date of the release of the earnings results, unless the
representatives waive, in writing, such extension.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our officers, directors and substantially all of our
stockholders have agreed that they will not:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    offer, sell, contract to sell, pledge or otherwise dispose of,
    directly or indirectly, any shares of our common stock or
    securities convertible into or exchangeable or exercisable for
    any shares of our common stock or enter into a transaction that
    would have the same effect;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    enter into any swap, hedge or other arrangement that transfers,
    in whole or in part, any of the economic consequences of
    ownership of our common stock, whether any of these transactions
    are to be settled by delivery of our common stock or other
    securities, in cash or otherwise; or</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    publicly disclose the intention to make any offer, sale, pledge
    or disposition, or to enter into any transaction, swap, hedge or
    other arrangement;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
without, in each case, the prior written consent of the
representatives for a period of 180&nbsp;days after the date of
this prospectus.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
However, if the reported last sale price of our common stock on
The NASDAQ National Market is at least 50% greater than the
offering price per share for 20 of the 30 trading days ending on
the last trading day before the 100th&nbsp;day after the date of
this prospectus, then 20% of the shares of our common stock
owned by the officers, directors and stockholders described
above that are subject to the
<FONT style="white-space: nowrap">180-day</FONT> restrictions
described above,
or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares,
will be released from these restrictions. Further, in the event
that (1)&nbsp;during the last 17&nbsp;days of either the initial
<FONT style="white-space: nowrap">100-day</FONT>
&#147;lock-up&#148; period or the full
<FONT style="white-space: nowrap">180-day</FONT>
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
&#147;lock-up&#148; period we release earnings results or
(2)&nbsp;prior to the expiration of either the initial
<FONT style="white-space: nowrap">100-day</FONT>
&#147;lock-up&#148; period or the full
<FONT style="white-space: nowrap">180-day</FONT>
&#147;lock-up&#148; period we announce that we will release
earnings results during the
<FONT style="white-space: nowrap">16-day</FONT> period beginning
on the last day of each &#147;lock-up&#148; period, then in
either case the &#147;lock-up&#148; period will be extended
until the expiration of the
<FONT style="white-space: nowrap">18-day</FONT> period beginning
on the date of the release of the earnings results, unless the
representatives waive, in writing, the extension. The foregoing
&#147;lock-up&#148; provisions applicable to our officers,
directors and substantially all of our stockholders do not
prohibit the exercise of options held by them or the conversion
of any shares of our Series&nbsp;A, B, C, D, E, AA, BB or CC
preferred stock held by them into our common stock.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Credit Suisse Securities (USA)&nbsp;LLC and Goldman,
Sachs&nbsp;&#38; Co. have advised us that they have no present
intent or arrangement to release any shares subject to a
lock-up, and will consider the release of any
<FONT style="white-space: nowrap">lock-up</FONT> on a
case-by-case basis. Upon a request to release any shares subject
to a lock-up, Credit Suisse Securities (USA)&nbsp;LLC and
Goldman, Sachs&nbsp;&#38; Co. would consider the particular
circumstances surrounding the request, including, but not
limited to, the length of time before the
<FONT style="white-space: nowrap">lock-up</FONT> expires, the
number of shares requested to be released, reasons for the
request, the possible impact on the market for our common stock
and whether the holder of our shares requesting the release is
an officer, director or other affiliate of ours.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We and the selling stockholders have agreed to indemnify the
underwriters and Goldman, Sachs&nbsp;&#38; Co. in its capacity
as qualified independent underwriter against liabilities under
the Securities Act, or contribute to payments that the
underwriters or Goldman, Sachs&nbsp;&#38; Co. in its capacity as
qualified independent underwriter may be required to make in
that respect.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have applied to list the shares of common stock on The NASDAQ
National Market.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain of the underwriters and their respective affiliates have
from time to time performed, and may in the future perform,
various financial advisory, commercial banking and investment
banking services for us and our affiliates in the ordinary
course of business, for which they received, or will receive,
customary fees and expenses. In addition, we have the following
relationships with certain of the underwriters and their
affiliates:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Affiliates of Credit Suisse Securities (USA)&nbsp;LLC own
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our common
    stock as
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006 (calculated without giving effect to this offering or the
    conversion of any shares of preferred stock into common stock),
    98.1% of our Series&nbsp;A preferred stock, 89.8% of our
    Series&nbsp;B preferred stock, 100% of our Series&nbsp;C
    preferred stock, 80.9% of our Series&nbsp;D Preferred Stock,
    100% of our Series&nbsp;E preferred stock, 13.4% of our
    Series&nbsp;AA preferred stock, 30.0% of our Series&nbsp;BB
    preferred stock and 15.4% of our Series&nbsp;CC preferred stock,
    and, upon completion of the offering and related transactions,
    will own approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our
    common stock. See &#147;Principal and Selling
    Stockholders.&#148; Concurrently with the completion of the
    offering, affiliates of Credit Suisse Securities&nbsp;(USA) LLC
    will deposit all shares of our common stock held by them that
    exceed 5.0% of our then outstanding common stock into a voting
    trust under which the shares will be voted by an independent
    trustee. See &#147;Principal and Selling Stockholders&#148; and
    &#147;Description of Capital Stock&nbsp;&#151; Voting Trust
    Agreement&#148; for more information regarding the voting trust
    agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;Thomas Barry, one of our directors, is a limited
    partner in an investment fund associated with DLJ Merchant
    Banking, the corporate leveraged buyout arm of Credit
    Suisse&#146;s asset management business, which conducts its
    activities through affiliates of Credit Suisse Securities (USA)
    LLC. See &#147;Management&#148; and &#147;Certain Relationships
    and Related Party Transactions&#148; for more information
    regarding Mr.&nbsp;Barry.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Mr. Edward A. Johnson, one of our directors, also serves as a
    managing director of Credit Suisse Securities (USA)&nbsp;LLC and
    a partner at DLJ&nbsp;Merchant Banking, the corporate leveraged
    buyout arm of Credit Suisse&#146;s asset management business,
    which conducts its activities through affiliates of Credit
    Suisse Securities (USA)&nbsp;LLC. Mr.&nbsp;Johnson will resign
    his position as a director of our</TD>
</TR>

</TABLE>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    company immediately prior to the completion of the offering. See
    &#147;Management&#148; and &#147;Certain Relationships and
    Related Party Transactions&#148; for more information regarding
    Mr.&nbsp;Johnson.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Mr. Frank J. Fanzilli,&nbsp;Jr., one of our directors, formerly
    served in several capacities at Credit Suisse Securities (USA)
    LLC. Currently, Mr.&nbsp;Fanzilli is a limited partner in an
    investment fund associated with the Sprout Group, the venture
    capital arm of Credit Suisse&#146;s asset management business,
    which conducts its activities through affiliates of Credit
    Suisse Securities (USA) LLC. See &#147;Management&#148; and
    &#147;Certain Relationships and Related Party Transactions&#148;
    for more information regarding Mr.&nbsp;Fanzilli.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;Keith Geeslin, one of our directors, formerly served in
    several capacities at various affiliates of Credit Suisse
    Securities&nbsp;(USA) LLC, including as a managing partner of
    the Sprout Group, the venture capital arm of Credit
    Suisse&#146;s asset management business, which conducts its
    activities through affiliates of Credit Suisse Securities
    (USA)&nbsp;LLC. Currently, Mr.&nbsp;Geeslin is a limited partner
    in certain investment funds associated with DLJ Merchant
    Banking, the corporate leveraged buyout arm of Credit
    Suisse&#146;s asset management business, which conducts its
    activities through affiliates of Credit Suisse Securities (USA)
    LLC, and the Sprout Group. See &#147;Management&#148; and
    &#147;Certain Relationships and Related Party Transactions&#148;
    for more information regarding Mr.&nbsp;Geeslin.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;Daniel Pulver, one of our directors, formerly served as
    a director of Credit Suisse Securities&nbsp;(USA) LLC and a
    principal at DLJ Merchant Banking, the corporate leveraged
    buyout arm of Credit Suisse&#146;s asset management business,
    which conducts its activities through affiliates of Credit
    Suisse Securities (USA) LLC. Currently, Mr.&nbsp;Pulver is a
    limited partner in an investment fund associated with DLJ
    Merchant Banking. See &#147;Management&#148; and &#147;Certain
    Relationships and Related Party Transactions&#148; for more
    information regarding Mr.&nbsp;Pulver.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;N. Robert Hammer, our chairman, chief executive officer
    and president, formerly served in several capacities at various
    affiliates of Credit Suisse Securities&nbsp;(USA) LLC, including
    as a venture partner of the Sprout Group, the venture capital
    arm of Credit Suisse&#146;s asset management business, which
    conducts its activities through affiliates of Credit Suisse
    Securities (USA) LLC. Currently, Mr.&nbsp;Hammer is a limited
    partner in certain investment funds associated with the Sprout
    Group. See &#147;Management&#148; and &#147;Certain
    Relationships and Related Party Transactions&#148; for more
    information regarding Mr.&nbsp;Hammer.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;Alan G. Bunte, our executive vice president and chief
    operating officer, is a limited partner in an investment fund
    associated with the Sprout Group, the venture capital arm of
    Credit Suisse&#146;s asset management business, which conducts
    its activities through affiliates of Credit Suisse
    Securities&nbsp;(USA) LLC. See &#147;Management&#148; and
    &#147;Certain Relationships and Related Party Transactions&#148;
    for more information regarding Mr.&nbsp;Bunte.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    An affiliate of RBC Capital Markets Corporation owns
    approximately 2.2% of our Series&nbsp;BB preferred Stock and
    0.095% of our Series&nbsp;CC preferred stock, and upon
    completion of the offering and related transactions will own
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our common
    stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Affiliates and related parties of C.E. Unterberg, Towbin, LLC
    own approximately 5.0% of our Series&nbsp;CC preferred stock,
    and upon completion of the offering and related transactions
    will own approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our
    common stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Affiliates of Credit Suisse Securities&nbsp;(USA) LLC will
    receive
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    of the net proceeds to us from the offering, the concurrent
    private placement and borrowings under our new term loan in
    satisfaction of amounts due upon the conversion of their
    holdings of our Series&nbsp;A, B, C, D and E preferred stock
    (including accrued dividends, and assuming the offering is
    completed
    on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2006).
    See &#147;Certain Relationships and Related Party
    Transactions&#148; for more information regarding these payments.</TD>
</TR>

</TABLE>

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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The decision of Credit Suisse Securities (USA)&nbsp;LLC, C.E.
Unterberg, Towbin, LLC and RBC Capital Markets Corporation to
distribute our common stock was not influenced by their
affiliates who own shares of our common stock and preferred
stock, and those affiliates had no involvement in determining
whether or when to distribute the common stock under this
offering or the terms of this offering. Credit Suisse
Securities&nbsp;(USA) LLC, C.E.&nbsp;Unterberg, Towbin, LLC and
RBC Capital Markets Corporation will not receive any benefit
from this offering other than as described in this prospectus.
See &#147;Risk Factors&nbsp;&#151; Risks Related to the
Offering&nbsp;&#151; Credit Suisse Securities (USA) LLC, an
underwriter in this offering, has an interest in the successful
completion of this offering beyond the discounts and commissions
it will receive.&#148;
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prior to this offering, there has been no public market for our
common stock. The initial public offering price will be
determined by a negotiation between us, the underwriters and
Goldman, Sachs&nbsp;&#38; Co. in its capacity as qualified
independent underwriter and will not necessarily reflect the
market price of the common stock following the offering. The
principal factors that will be considered in determining the
public offering price will include:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the information in this prospectus and otherwise available to
    the underwriters;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    market conditions for initial public offerings;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the history and the prospects for the industry in which we
    compete;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the ability of our management;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the prospects for our future earnings;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the present state of our development and our current financial
    condition;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the recent market prices of, and the demand for, publicly traded
    common stock of generally comparable companies;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the general condition of the securities markets at the time of
    this offering.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We cannot assure you that the initial public offering price will
correspond to the price at which the common stock will trade in
the public market subsequent to the offering or that an active
trading market for the common stock will develop and continue
after the offering.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the offering, the underwriters may engage in
stabilizing transactions, over-allotment transactions, syndicate
covering transactions, penalty bids and passive market making in
accordance with Regulation&nbsp;M under the Securities Exchange
Act of 1934, as amended:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Stabilizing transactions permit bids to purchase the underlying
    security so long as the stabilizing bids do not exceed a
    specified maximum.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Over-allotment involves sales by the underwriters of shares in
    excess of the number of shares the underwriters are obligated to
    purchase, which creates a syndicate short position. The short
    position may be either a covered short position or a naked short
    position. In a covered short position, the number of shares
    over-allotted by the underwriters is not greater than the number
    of shares that they may purchase in the over-allotment option.
    In a naked short position, the number of shares involved is
    greater than the number of shares in the over-allotment option.
    The underwriters may close out any covered short position by
    either exercising their over-allotment option and/or purchasing
    shares in the open market.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Syndicate covering transactions involve purchases of the common
    stock in the open market after the distribution has been
    completed in order to cover syndicate short positions. In
    determining the source of shares to close out the short
    position, the underwriters will consider, among other things,
    the price of shares available for purchase in the open market as
    compared to the price at which they may purchase shares through
    the over-allotment option. If the underwriters sell more shares
    than could be covered by the over- allotment option, a naked
    short position, the position can only be closed out by buying
    shares in the open market. A naked short position is more likely
    to be created if the underwriters are concerned that there could
    be downward pressure on the price of the shares in the open
    market after pricing that could adversely affect investors who
    purchase in the offering.</TD>
</TR>

</TABLE>

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<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Penalty bids permit the representatives to reclaim a selling
    concession from a syndicate member when the common stock
    originally sold by the syndicate member is purchased in a
    stabilizing or syndicate covering transaction to cover syndicate
    short positions.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In passive market making, market makers in the common stock who
    are underwriters or prospective underwriters may, subject to
    limitations, make bids for or purchases of our common stock
    until the time, if any, at which a stabilizing bid is made.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
These stabilizing transactions, syndicate covering transactions
and penalty bids may have the effect of raising or maintaining
the market price of our common stock or preventing or retarding
a decline in the market price of the common stock. As a result,
the price of our common stock may be higher than the price that
might otherwise exist in the open market. These transactions may
be effected on The NASDAQ National Market or otherwise and, if
commenced, may be discontinued at any time.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each of the underwriters has represented and agreed that:
</DIV>

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;it has not made or will not make an offer of shares to
    the public in the United Kingdom within the meaning of
    section&nbsp;102B of the Financial Services and Markets Act 2000
    (&#147;FSMA&#148;), as amended, except to legal entities which
    are authorized or regulated to operate in the financial markets
    or, if not so authorized or regulated, whose corporate purpose
    is solely to invest in securities or otherwise in circumstances
    which do not require the publication by our Company of a
    prospectus pursuant to the Prospectus Rules of the Financial
    Services Authority&nbsp;(&#147;FSA&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;it has only communicated or caused to be communicated
    and will only communicate or cause to be communicated an
    invitation or inducement to engage in investment activity
    (within the meaning of section&nbsp;21 of the FSMA) to persons
    who have professional experience in matters relating to
    investments falling within Article&nbsp;19(5) of the Financial
    Services and Markets Act 2000 (Financial Promotion) Order 2005
    or in circumstances in which section&nbsp;21 of the FSMA does
    not apply to our Company;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;it has complied with, and will comply with, all
    applicable provisions of the FSMA with respect to anything done
    by it in relation to the shares in, from or otherwise involving
    the United Kingdom.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In relation to each Member State of the European Economic Area
which has implemented the Prospectus Directive (each, a
&#147;Relevant Member State&#148;), each underwriter has
represented and agreed that with effect from and including the
date on which the Prospectus Directive is implemented in that
Relevant Member State (the &#147;Relevant Implementation
Date&#148;) it has not made and will not make an offer of shares
to the public in that Relevant Member State prior to the
publication of a prospectus in relation to the shares which has
been approved by the competent authority in that Relevant Member
State or, where appropriate, approved in another Relevant Member
State and notified to the competent authority in that Relevant
Member State, all in accordance with the Prospectus Directive,
except that it may, with effect from and including the Relevant
Implementation Date, make an offer of shares to the public in
that Relevant Member State at any time:
</DIV>

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
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<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;to legal entities which are authorized or regulated to
    operate in the financial markets or, if not so authorized or
    regulated, whose corporate purpose is solely to invest in
    securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;to any legal entity which has two or more of
    (1)&nbsp;an average of at least 250 employees during the last
    financial year; (2)&nbsp;a total balance sheet of more than
    <FONT face="times new roman,times">&#128;</FONT>43,000,000; and
    (3)&nbsp;an annual net turnover of more than
    <FONT face="times new roman,times">&#128;</FONT>50,000,000, as
    shown in its last annual or consolidated accounts;</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;to fewer than 100 natural or legal persons (other than
    qualified investors as defined in the Prospectus Directive)
    subject to obtaining the prior consent of the manager for any
    such offer;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (d)&nbsp;in any other circumstances which do not require the
    publication by our Company of a prospectus pursuant to
    Article&nbsp;3 of the Prospectus Directive.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
For the purposes of this provision, the expression an
&#147;offer of shares to the public&#148; in relation to any
shares in any Relevant Member State means the communication in
any form and by any means of
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
sufficient information on the terms of the offer and the shares
to be offered so as to enable an investor to decide to purchase
or subscribe the shares, as the same may be varied in that
Relevant Member State by any measure implementing the Prospectus
Directive in that Relevant Member State and the expression
Prospectus Directive means Directive 2003/71/EC and includes any
relevant implementing measure in each Relevant Member State.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The shares may not be offered or sold by means of any document
other than to persons whose ordinary business is to buy or sell
shares or debentures, whether as principal or agent, or in
circumstances which do not constitute an offer to the public
within the meaning of the Companies Ordinance (Cap.&nbsp;32) of
Hong Kong, and no advertisement, invitation or document relating
to the shares may be issued, whether in Hong Kong or elsewhere,
which is directed at, or the contents of which are likely to be
accessed or read by, the public in Hong Kong (except if
permitted to do so under the securities laws of Hong Kong) other
than with respect to shares which are or are intended to be
disposed of only to persons outside Hong Kong or only to
&#147;professional investors&#148; within the meaning of the
Securities and Futures Ordinance (Cap.&nbsp;571) of Hong Kong
and any rules made thereunder.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This prospectus has not been registered as a prospectus with the
Monetary Authority of Singapore. Accordingly, this prospectus
and any other document or material in connection with the offer
or sale, or invitation for subscription or purchase, of the
shares may not be circulated or distributed, nor may the shares
be offered or sold, or be made the subject of an invitation for
subscription or purchase, whether directly or indirectly, to
persons in Singapore other than (i)&nbsp;to an institutional
investor under Section&nbsp;274 of the Securities and Futures
Act, Chapter&nbsp;289 of Singapore (the &#147;SFA&#148;),
(ii)&nbsp;to a relevant person, or any person pursuant to
Section&nbsp;275(1A), and in accordance with the conditions,
specified in Section&nbsp;275 of the SFA, or
(iii)&nbsp;otherwise pursuant to, and in accordance with the
conditions of, any other applicable provision of the SFA.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Where the shares are subscribed or purchased under
Section&nbsp;275 by a relevant person which is: (a)&nbsp;a
corporation (which is not an accredited investor) the sole
business of which is to hold investments and the entire share
capital of which is owned by one or more individuals, each of
whom is an accredited investor; or (b)&nbsp;a trust (where the
trustee is not an accredited investor) whose sole purpose is to
hold investments and each beneficiary is an accredited investor,
shares, debentures and units of shares and debentures of that
corporation or the beneficiaries&#146; rights and interest in
that trust shall not be transferable for 6&nbsp;months after
that corporation or that trust has acquired the shares under
Section&nbsp;275 except: (1)&nbsp;to an institutional investor
under Section&nbsp;274 of the SFA or to a relevant person, or
any person pursuant to Section&nbsp;275(1A), and in accordance
with the conditions, specified in Section&nbsp;275 of the SFA;
(2)&nbsp;where no consideration is given for the transfer; or
(3)&nbsp;by operation of law.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The shares have not been and will not be registered under the
Securities and Exchange Law of Japan (the &#147;Securities and
Exchange Law&#148;) and each underwriter has agreed that it will
not offer or sell any shares, directly or indirectly, in Japan
or to, or for the benefit of, any resident of Japan (which term
as used herein means any person resident in Japan, including any
corporation or other entity organized under the laws of Japan),
or to others for re-offering or resale, directly or indirectly,
in Japan or to a resident of Japan, except pursuant to an
exemption from the registration requirements of, and otherwise
in compliance with, the Securities and Exchange Law and any
other applicable laws, regulations and ministerial guidelines of
Japan.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each person who is in possession of this prospectus is aware of
the fact that no German sales prospectus (Verkaufsprospekt)
within the meaning of the Securities Sales Prospectus Act
(Wertpapier-Verkaufsprospektgesetz, the &#147;Act&#148;) of the
Federal Republic of Germany has been or will be published with
respect to our shares. In particular, each underwriter has
represented that it has not engaged and has agreed that it will
not engage in a public offering (offentliches Angebot) within
the meaning of the Act with respect to any of our shares
otherwise than in accordance with the Act and all other
applicable legal and regulatory requirements.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each underwriter has agreed that the shares are being issued and
sold outside the Republic of France and that, in connection with
their initial distribution, it has not offered or sold and will
not offer or sell,
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
directly or indirectly, any shares to the public in the Republic
of France, and that it has not distributed and will not
distribute or cause to be distributed to the public in the
Republic of France this prospectus or any other offering
material relating to the shares, and that such offers, sales and
distributions have been and will be made in the Republic of
France only to qualified investors (investisseurs
qualifi&#233;s) in accordance with
Article&nbsp;<FONT style="white-space: nowrap">L.411-2</FONT> of
the Monetary and Financial Code and decr&#233;t
no.&nbsp;<FONT style="white-space: nowrap">98-880</FONT> dated
1st&nbsp;October, 1998.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our shares may not be offered, sold, transferred or delivered in
or from The Netherlands as part of their initial distribution or
at any time thereafter, directly or indirectly, other than to
individuals or legal entities situated in The Netherlands who or
which trade or invest in securities in the conduct of a business
or profession (which includes banks, securities intermediaries
(including dealers and brokers), insurance companies, pension
funds, collective investment institutions, central governments,
large international and supranational organizations, other
institutional investors and other parties, including treasury
departments of commercial enterprises, which as an ancillary
activity regularly invest in securities; hereinafter,
&#147;Professional Investors&#148;), provided that in the offer,
the prospectus and in any other documents or advertisements in
which a forthcoming offering of our shares is publicly announced
(whether electronically or otherwise) in The Netherlands it is
stated that such offer is and will be exclusively made to such
Professional Investors. Individual or legal entities who are not
Professional Investors may not participate in the offering of
our shares, and this prospectus or any other offering material
relating to our shares may not be considered an offer or the
prospect of an offer to sell or exchange our shares.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A prospectus in electronic format may be made available on the
websites maintained by one or more of the underwriters, or
selling group members, if any, participating in this offering
and one or more of the underwriters participating in this
offering may distribute prospectuses electronically. The
representatives may agree to allocate a number of shares to
underwriters and selling group members for sale to their online
brokerage account holders. Internet distributions will be
allocated by the underwriters and selling group members that
will make internet distributions on the same basis as other
allocations.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='119'></A>
</DIV>

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<B>LEGAL MATTERS</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain legal matters in connection with the sale of the shares
of common stock offered hereby will be passed upon for us by
Mayer, Brown, Rowe&nbsp;&#38; Maw LLP, Chicago, Illinois. The
underwriters have been represented by Cravath, Swaine&nbsp;&#38;
Moore LLP, New York, New York.
</DIV>

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<A name='120'></A>
</DIV>

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<B>EXPERTS</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ernst&nbsp;&#38; Young LLP, independent registered public
accounting firm, has audited our consolidated financial
statements and schedule at March&nbsp;31, 2006 and
March&nbsp;31, 2005, and for each of the three years in the
period ended March&nbsp;31, 2006, as set forth in their report.
We have included our financial statements and schedule in the
prospectus and elsewhere in the registration statement in
reliance on Ernst&nbsp;&#38; Young LLP&#146;s report, given on
their authority as experts in accounting and auditing.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The SEC auditor independence rules require an auditor to be
independent of its audit client and the audit client&#146;s
affiliates. Based on the definition of affiliate in
Rule&nbsp;2-01(f)(4) of
Regulation&nbsp;<FONT style="white-space: nowrap">S-X,</FONT>
Credit Suisse Group would be deemed to be an affiliate of
CommVault because Credit Suisse Group is in a position to
ultimately control CommVault through Credit Suisse Group&#146;s
ownership, through its subsidiaries, of a majority of
CommVault&#146;s common shares. Concurrently with the completing
of this offering, Credit Suisse Group and its affiliates will
deposit all shares of our common stock held by them that exceed
5.0% of our then-outstanding common stock into a voting trust
under which the shares will be voted by an independent trustee.
See &#147;Description of Capital Stock&nbsp;&#151; Voting
Trust&nbsp;Agreement&#148; for more information regarding the
voting trust agreement.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our independent auditors, Ernst&nbsp;&#38;&nbsp;Young LLP, do
not audit Credit Suisse Group. Ernst&nbsp;&#38; Young has
informed us that, among other things, Ernst&nbsp;&#38; Young,
its affiliates, its partners and employees have certain
financial and other relationships with Credit Suisse Group and
its related entities and Ernst&nbsp;&#38;
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
Young has performed certain non-audit services for Credit Suisse
Group and its related entities that are not in accordance with
the auditor independence standards in
Regulation&nbsp;<FONT style="white-space: nowrap">S-X</FONT> and
of the Public Company Accounting Oversight Board. None of these
interests, relationships or services involves CommVault
directly, nor CommVault&#146;s consolidated financial statements.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our audit committee reviewed these matters with representatives
of Ernst&nbsp;&#38;&nbsp;Young. The audit committee considered
all relevant facts and circumstances, including Ernst&nbsp;&#38;
Young&#146;s representations with respect to its relationships
with Credit Suisse Group and its related entities and
Ernst&nbsp;&#38; Young&#146;s conclusion that it is independent
with respect to CommVault, and concluded that none of the
relationships between Ernst&nbsp;&#38; Young and Credit Suisse
Group and its related entities involved CommVault, nor did they
have any impact on our consolidated financial statements and,
thus, the arrangements did not compromise Ernst&nbsp;&#38;
Young&#146;s independence with respect to CommVault.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='121'></A>
</DIV>

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<B>WHERE YOU CAN FIND MORE INFORMATION</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have filed with the SEC a registration statement on
Form&nbsp;<FONT style="white-space: nowrap">S-1</FONT> under the
Securities Act that registers the shares of our common stock to
be sold in this offering. This prospectus does not contain all
of the information set forth in the registration statement,
certain parts of which are omitted in accordance with the rules
and regulations of the SEC. For further information about us and
the shares to be sold in this offering, please refer to the
registration statement. Statements contained in this prospectus
as to the contents of any agreement or any other document
referred to are not necessarily complete and, in each instance,
we refer you to the copy of the agreement or other document
filed as an exhibit to the registration statement. Each of these
statements is qualified in all respects by this reference.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You may read and copy the registration statement, and the
exhibits and schedules to the registration statement, at the
public reference room maintained by the SEC at
100&nbsp;F&nbsp;Street, N.E., Room&nbsp;1580,
Washington,&nbsp;D.C. 20549. Please call the SEC at
<FONT style="white-space: nowrap">1-800-SEC-0330</FONT> for
further information regarding the public reference room. You may
also obtain copies of all or part of the registration statement
by mail from the Public Reference Section of the SEC,
100&nbsp;F&nbsp;Street, N.E., Washington,&nbsp;D.C. 20549, at
prescribed rates.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The SEC also maintains a website that contains reports, proxy
and information statements and other information about issuers,
including CommVault, that file electronically with the SEC. The
address of that site is http://www.sec.gov.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon completion of this offering, we will become subject to the
reporting and information requirements of the Securities
Exchange Act of 1934, as amended, and we will file reports,
proxy statements and other information with the SEC.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>CommVault Systems, Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Consolidated Financial Statements</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Years ended March&nbsp;31, 2006, 2005, 2004</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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<A name='122'></A>
</DIV>

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<B>Index to Consolidated Financial Statements and Schedule</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
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    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#300'>Report of Independent Registered Public
    Accounting Firm</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    F-2</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#301'>Consolidated Balance Sheets as of
    March&nbsp;31, 2005 and 2006</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    F-3</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#302'>Consolidated Statements of Operations for
    the years ended March&nbsp;31, 2004, 2005 and 2006</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    F-4</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#303'>Consolidated Statements of
    Stockholders&#146; Deficit for the years ended March&nbsp;31,
    2004, 2005 and 2006</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    F-5</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#304'>Consolidated Statements of Cash Flows for
    the years ended March&nbsp;31, 2004, 2005 and 2006</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    F-6</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#305'>Notes to Consolidated Financial
    Statements</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    F-7</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#306'>Schedule&nbsp;II&nbsp;&#151; Valuation and
    Qualifying Accounts</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    F-30</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-1

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='300'></A>
</DIV>

<!-- link1 "Report of Independent Registered Public Accounting Firm" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Report of Independent Registered Public Accounting Firm</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>The Board of Directors and Stockholders</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems, Inc.</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have audited the accompanying consolidated balance sheets of
CommVault Systems, Inc. and subsidiaries as of March&nbsp;31,
2006 and 2005 and the related consolidated statements of
operations, stockholders&#146; deficit, and cash flows for each
of the three years in the period ended March&nbsp;31, 2006. Our
audits also include the financial statement schedule listed in
the Index at page F-1. These financial statements and schedule
are the responsibility of the Company&#146;s management. Our
responsibility is to express an opinion on these financial
statements and schedule based on our audits.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are
free of material misstatement. We were not engaged to perform an
audit of the Company&#146;s internal control over financial
reporting. Our audits included consideration of internal control
over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of
the Company&#146;s internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by
management, and evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In our opinion, the financial statements referred to above
present fairly, in all material respects, the consolidated
financial position of CommVault Systems, Inc. and subsidiaries
at March&nbsp;31, 2006 and 2005, and the consolidated results of
their operations and their cash flows for each of the three
years in the period ended March&nbsp;31, 2006, in conformity
with U.S.&nbsp;generally accepted accounting principles. Also,
in our opinion, the related financial statement schedule, when
considered in relation to the basic financial statements taken
as whole, presents fairly in all material respects the
information set forth therein.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    /s/ Ernst&nbsp;&#38; Young LLP</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
MetroPark, New Jersey
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
June&nbsp;28, 2006
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-2
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>CommVault Systems, Inc.</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<A name='301'></A>
</DIV>

<!-- link1 "Consolidated Balance Sheets" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>Consolidated Balance Sheets</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9.0pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="58%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro Forma</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Unaudited)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="14" align="left" valign="top">
    <B>Assets</B></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current assets:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>24,795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>48,039</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Trade accounts receivable, less allowance for doubtful accounts
    of $602 and $475 at March&nbsp;31, 2005 and 2006, respectively</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,238</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prepaid expenses and other current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,986</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,877</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45,086</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>68,154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property and equipment, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,085</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,322</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>342</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,092</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>47,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>72,568</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="14">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Liabilities, cumulative redeemable convertible preferred
    stock and stockholders&#146; deficit</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current liabilities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts payable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,755</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,451</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Term loan</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>166</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,273</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,765</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred revenue, less current portion</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,281</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Term loan, less current portion</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Commitments and contingencies</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cumulative redeemable convertible preferred stock:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Series&nbsp;A through E, at liquidation value</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>93,507</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>99,168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Stockholders&#146; deficit:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Convertible preferred stock, $.01&nbsp;par value:
    5,000&nbsp;shares Series&nbsp;AA authorized, 4,362 issued and
    outstanding; 5,000&nbsp;shares Series&nbsp;BB authorized, 2,758
    issued and outstanding; 12,150&nbsp;shares Series&nbsp;CC
    authorized, 12,132 issued and outstanding; liquidation value
    $96,339 at March&nbsp;31, 2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Common stock, $.01&nbsp;par value, 120,850&nbsp;shares
    authorized, 37,617 and 37,920&nbsp;shares issued and outstanding
    at March&nbsp;31, 2005 and 2006,
    respectively; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    issued and outstanding pro forma at March&nbsp;31, 2006
    (unaudited)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>379</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Additional paid-in capital</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred compensation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(61</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,134</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accumulated deficit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(175,904</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(165,148</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accumulated other comprehensive income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>226</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total stockholders&#146; deficit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(81,010</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(73,664</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2"><FONT style="font-size: 9pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>47,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>72,568</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-3

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>CommVault Systems, Inc.</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<A name='302'></A>
</DIV>

<!-- link1 "Consolidated Statements of Operations" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>Consolidated Statements of Operations</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9.0pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Year Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenues:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Software</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>39,474</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>49,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>62,422</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33,031</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47,050</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>82,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>109,472</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cost of revenues:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Software</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,497</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,764</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Services</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,231</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total cost of revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,217</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,472</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,995</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gross margin</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52,029</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,477</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sales and marketing</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,592</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,248</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51,326</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Research and development</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,239</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,301</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    General and administrative</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,275</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,396</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,390</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,623</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,772</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>325</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,952</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(60</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>346</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,262</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income (loss) before income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,698</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>657</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,207</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income tax expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(174</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(451</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,698</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,756</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less: accretion of preferred stock dividends</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,676</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss) attributable to common stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(17,374</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(5,178</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,095</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss) attributable to common stockholders per share:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.47</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.09</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.47</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.08</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Weighted average shares used in computing per share amounts:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,201</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,678</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,201</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,866</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unaudited pro forma net income (loss) attributable to common
    stockholders per share:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unaudited pro forma weighted average shares used in computing
    per share amounts:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-4

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>CommVault Systems, Inc.</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<A name='303'></A>
</DIV>

<!-- link1 "Consolidated Statements of Stockholders&#146; Deficit" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>Consolidated Statements of Stockholders&#146; Deficit</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>Years ended March&nbsp;31, 2004, 2005 and 2006</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands)</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9.0pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 7.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Accumulated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Convertible</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Preferred Stock</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Common Stock</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Additional</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Comprehensive</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Paid-In</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Deferred</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Accumulated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Income</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amount</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amount</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Capital</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Compensation</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Deficit</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Loss)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at March&nbsp;31, 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>79,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,399</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>374</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(155,656</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(75,561</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Stock options exercised</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>373</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Repurchase and retirement of common stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Issuance of shares in private placement</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,791</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,702</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,702</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Issuance of common stock warrant to a customer</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,696</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,696</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Comprehensive income (loss):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,698</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,698</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other comprehensive income (loss):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign currency translation adjustment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>250</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total comprehensive income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11,448</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred compensation related to stock options</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(86</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Amortization of deferred compensation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accretion of dividends on preferred stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,153</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,523</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,676</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at March&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,559</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>376</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(82</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(170,877</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(75,910</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Stock options exercised</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>151</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>152</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Repurchase and retirement of common stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Comprehensive income (loss):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>483</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other comprehensive income (loss):</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign currency translation adjustment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(95</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(95</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total comprehensive income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>388</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Amortization of deferred compensation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accretion of dividends on preferred stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(151</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,510</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at March&nbsp;31, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,617</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(61</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(175,904</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>226</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(81,010</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Stock options exercised</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>703</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>705</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Comprehensive income:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,756</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other comprehensive income:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign currency translation adjustment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>155</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total comprehensive income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,911</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Acceleration of stock options</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>263</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>263</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred compensation related to stock options</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,201</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,201</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Amortization of deferred compensation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,128</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accretion of dividends on preferred stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at March&nbsp;31, 2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,252</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>94,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>379</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(8,134</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(165,148</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(73,664</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-5

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>CommVault Systems, Inc.</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<A name='304'></A>
</DIV>

<!-- link1 "Consolidated Statements of Cash Flows" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>Consolidated Statements of Cash Flows</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands)</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="61%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Year Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Cash flows from operating activities</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(11,698</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,756</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments to reconcile net income (loss) to net cash provided
    by (used in) operating activities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,425</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,682</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Noncash stock compensation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,391</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Issuance of common stock warrants</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,696</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Changes in operating assets and liabilities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts receivable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(352</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,759</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prepaid expenses and other current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(588</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>109</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(120</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>105</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts payable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,060</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(664</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,617</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,234</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred revenue and other liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,366</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,815</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,170</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash provided by operating activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,850</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Cash flows from investing activities</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Purchase of property and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,244</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,860</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,814</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash used in investing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,244</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,860</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,814</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Cash flows from financing activities</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from issuance of preferred stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,702</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from term loan</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>497</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Repayments on term loan</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(131</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(200</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(166</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred offering costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(486</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from issuance of common stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>372</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>705</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net cash provided by (used in) financing activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(48</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Effects of exchange rate&nbsp;&#151; changes in cash</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(95</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>155</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net increase in cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,347</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,837</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,244</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents at beginning of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,611</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,958</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,795</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents at end of year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>22,958</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>24,795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>48,039</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Supplemental disclosures of cash flow information</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest paid</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income taxes paid (received)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>483</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-6

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<A name='305'></A>
</DIV>

<!-- link1 "Notes to Consolidated Financial Statements" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>Notes to Consolidated Financial Statements</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>1.</B></TD>
    <TD>
    <B>Nature of Business</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
CommVault Systems, Inc and its subsidiaries
(&#147;CommVault&#148; or the &#147;Company&#148;) is a leading
provider of data management software applications and related
services in terms of product breadth and functionality and
market penetration. The Company develops, markets and sells a
suite of software applications and services, primarily in the
United States, Europe, Canada, Mexico and Australia, that
provides its customers with high-performance data protection,
global data availability, disaster recovery of data for business
continuance and archiving for regulatory compliance and other
data management purposes. The Company&#146;s unified suite of
data management software applications, which is sold under the
QiNetix brand, shares an underlying architecture that has been
developed to minimize the cost and complexity of managing data
on globally distributed and networked storage infrastructures.
The Company also provides its customers with a broad range of
professional and global support services.
</DIV>

<DIV style="margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>2.</B></TD>
    <TD>
    <B>Summary of Significant Accounting Policies</B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Basis of Presentation</I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The consolidated financial statements include the accounts of
the Company. All intercompany transactions and balances have
been eliminated.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Unaudited Pro Forma Information</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The unaudited pro forma balance sheet, unaudited pro forma net
income (loss) attributable to common stockholders per share and
unaudited pro forma weighted average shares used in computing
per share amounts have been presented to give effect to the
following events that will occur immediately before or upon the
completion of the Company&#146;s initial public offering:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The issuance on June&nbsp;15, 2006 of a total
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock upon the cashless exercise of a warrant held by
    Dell Ventures, L.P. and pursuant to preemptive rights held by
    the holders of Series&nbsp;AA, BB and CC preferred stock that
    were triggered by the exercise of the warrant;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the conversion of all outstanding shares of preferred stock into
    a total
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock;</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the payment of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
    satisfaction of the cash amount due to holders of Series&nbsp;A,
    B, C, D and E preferred stock upon its conversion into common
    stock (including accrued dividends, and assuming the initial
    public offering is completed
    in &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2006);</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the borrowing of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under
    a new term loan at an interest rate equal to 30-day LIBOR plus
    1.50%, and assumed to
    be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%&nbsp;per
    year in connection with the payments to the holders of
    Series&nbsp;A, B, C, D and E preferred stock (assuming that the
    initial public offering and the concurrent private placement are
    priced at
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share, the midpoint of the estimated price range shown on the
    cover of the prospectus);&nbsp;and</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the completion of the concurrent private placement
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of the Company&#146;s common stock at the public offering price
    and the application of the proceeds therefrom. Assuming an
    offering price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share (the midpoint of the estimated price range shown on the
    cover page of the prospectus) the Company will raise
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
    proceeds from the concurrent private placement.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The unaudited pro forma balance sheet has been presented as if
each event occurred at March&nbsp;31, 2006, and the unaudited
pro forma net income (loss) attributable to common stockholders
per share and unaudited pro forma weighted average shares used
in computing per share amounts have been presented as if each
event occurred at April&nbsp;1, 2005.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-7

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table shows the adjustments to net income (loss)
attributable to common stockholders for the periods shown to
arrive at the corresponding pro forma net income (loss)
attributable to common stockholders:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>March&nbsp;31, 2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income attributable to common stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,095</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Plus:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Elimination of accretion of preferred stock dividends</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,661</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense associated with term loan borrowings, net of
    taxes of $</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pro forma net income attributable to common stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following tables show the adjustments to the basic and
diluted weighted average number of shares used in computing pro
forma per share amounts:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>March&nbsp;31, 2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic weighted average number of shares used in computing per
    share amounts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,678</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Plus:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares issued upon conversion of outstanding preferred stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares issued in the concurrent private placement</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares issued upon warrant exercise and related shares issued
    pursuant to preemptive rights</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic pro forma weighted average number of shares used in
    computing per share amounts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 18pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>March&nbsp;31, 2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted weighted average number of shares used in computing per
    share amounts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,866</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dilutive effect of common stock warrants</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Plus:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares issued upon conversion of outstanding preferred stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares issued in the concurrent private placement</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shares issued upon warrant exercise and related shares issued
    pursuant to preemptive rights</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted pro forma weighted average number of shares used in
    computing per share amounts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Use of Estimates</I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The preparation of financial statements and related disclosures
in conformity with U.S.&nbsp;generally accepted accounting
principles requires management to make judgments and estimates
that affect the amounts reported in the Company&#146;s
consolidated financial statements and the accompanying notes.
The Company bases its estimates and judgments on historical
experience and on various other assumptions that
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-8
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
it believes are reasonable under the circumstances. The amounts
of assets and liabilities reported in the Company&#146;s balance
sheets and the amounts of revenues and expenses reported for
each of its periods presented are affected by estimates and
assumptions, which are used for, but not limited to, the
accounting for revenue recognition, allowance for doubtful
accounts, income taxes, stock-based compensation and accounting
for research and development costs. Actual results could differ
from those estimates.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Revenue Recognition</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company derives revenues from two primary sources, or
elements: software licenses and services. Services include
customer support, consulting, assessment and design services,
installation services and training. A typical sales arrangement
includes both of these elements. The Company applies the
provisions of Statement of Position (&#147;SOP&#148;)
<FONT style="white-space: nowrap">97-2,</FONT> <I>Software
Revenue Recognition</I>, as amended by SOP&nbsp;98-4 and
SOP&nbsp;98-9, and related interpretations to all transactions
to determine the recognition of revenue.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For software arrangements involving multiple elements, the
Company recognizes revenue using the residual method as
described in SOP&nbsp;98-9. Under the residual method, the
Company allocates and defers revenue for the undelivered
elements based on relative fair value and recognizes the
difference between the total arrangement fee and the amount
deferred for the undelivered elements as revenue. The
determination of fair value of the undelivered elements in
multiple element arrangements is based on the price charged when
such elements are sold separately, which is commonly referred to
as <FONT style="white-space: nowrap">vendor-specific</FONT>
objective-evidence, or VSOE.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s software licenses typically provide for a
perpetual right to use the Company&#146;s software and are sold
on a per-copy basis or as site licenses. Site licenses give the
customer the additional right to deploy the software on a
limited basis during a specified term. The Company recognizes
software revenue through direct sales channels upon receipt of a
purchase order or other persuasive evidence and when all other
basic revenue recognition criteria are met as described below.
The Company recognizes software revenue through all indirect
sales channels on a sell-through model. A sell-through model
requires that the Company recognize revenue when the basic
revenue recognition criteria are met as described below and
these channels complete the sale of the Company&#146;s software
products to the end user. Revenue from software licenses sold
through an original equipment manufacturer partner is recognized
upon the receipt of a royalty report or purchase order from that
original equipment manufacturer partner.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Services revenue includes revenue from customer support and
other professional services. Customer support includes software
updates on a when-and-if-available basis, telephone support and
bug fixes or patches. Customer support revenue is recognized
ratably over the term of the customer support agreement, which
is typically one year. To determine the price for the customer
support element when sold separately, the Company primarily uses
historical renewal rates and, in certain cases, it uses stated
renewal rates. Historical renewal rates are supported by
performing an analysis in which the Company segregates its
customer support renewal contracts into different classes based
on specific criteria including, but not limited to, the dollar
amount of the software purchased, the level of customer support
being provided and the distribution channel. As a result of this
analysis, the Company has concluded that it has sufficient VSOE
for the different classes of customer support when the support
is sold as part of a multiple-element arrangement.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s other professional services include
consulting, assessment and design services, installation
services and training. Other professional services provided by
the Company are not mandatory and can also be performed by the
customer or a third party. The Company&#146;s consulting,
assessment and design services and installation services are
generally evidenced by a signed Statement of Work
(&#147;SOW&#148;), which defines the specific scope of such
services to be performed. Revenues from consulting, assessment
and design services and installation services are based upon a
daily or weekly rate and are recognized when the services are
completed. Training includes courses taught by the
Company&#146;s instructors or third party
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-9

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
contractors either at one of the Company&#146;s facilities or at
the customer&#146;s site. Training fees are recognized after the
training course has been provided. Based on the Company&#146;s
analysis of such other professional services transactions sold
on a <FONT style="white-space: nowrap">stand-alone</FONT> basis,
the Company has concluded it has established VSOE for such other
professional services when sold in connection with a
multiple-element software arrangement. The Company generally
performs its other professional services within 60 to
90&nbsp;days of entering into an agreement. The price for other
professional services has not materially changed for the periods
presented.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has analyzed all of the undelivered elements
included in its multiple-element arrangements and determined
that VSOE of fair value exists to allocate revenues to services.
Accordingly, assuming all basic revenue recognition criteria are
met, software revenue is recognized upon delivery of the
software license using the residual method in accordance with
SOP&nbsp;<FONT style="white-space: nowrap">98-9.</FONT>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company considers the four basic revenue recognition
criteria for each of the elements as follows:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Persuasive evidence of an arrangement with the customer
    exists.</I> The Company&#146;s customary practice is to require
    a purchase order and, in some cases, a written contract signed
    by both the customer and the Company, a signed SOW evidencing
    the scope of certain other professional services, or other
    persuasive evidence that an arrangement exists prior to
    recognizing revenue on an arrangement.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Delivery or performance has occurred.</I> The Company&#146;s
    software applications are usually physically delivered to
    customers with standard transfer terms such as FOB shipping
    point. Software and/or software license keys for add-on orders
    or software updates are typically delivered via email. If
    products that are essential to the functionality of the
    delivered software in an arrangement have not been delivered,
    the Company does not consider delivery to have occurred.
    Services revenue is recognized when the services are completed,
    except for customer support, which is recognized ratably over
    the term of the customer support agreement, which is typically
    one year.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Vendor&#146;s fee is fixed or determinable.</I> The fee
    customers pay for software applications, customer support and
    other professional services is negotiated at the outset of an
    arrangement. The fees are therefore considered to be fixed or
    determinable at the inception of the arrangement.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Collection is probable.</I> Probability of collection is
    assessed on a customer-by-customer basis. Each new customer
    undergoes a credit review process to evaluate its financial
    position and ability to pay. If the Company determines from the
    outset of an arrangement that collection is not probable based
    upon the review process, revenue is recognized on a
    cash-collected basis, assuming all of the other basic revenue
    recognition criteria are met.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s arrangements do not generally include
acceptance clauses. However, if an arrangement does include an
acceptance clause, revenue for such an arrangement is deferred
and recognized upon acceptance. Acceptance occurs upon the
earliest of receipt of a written customer acceptance, waiver of
customer acceptance or expiration of the acceptance period.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has offered limited price protection under certain
original equipment manufacturer agreements. Any right to a
future refund from such price protection is entirely within the
Company&#146;s control. It is estimated that the likelihood of a
future payout due to price protection is remote.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Cost of Revenue</I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cost of software revenue consists primarily of third party
royalties and other costs such as media, manuals, translation
and distribution costs. Cost of services revenue consists
primarily of salary, travel expenses and employee benefit costs
in providing customer support and other professional services.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-10

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Accounting for Income Taxes</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company accounts for income taxes in accordance with
Statement of Financial Accounting Standards (&#147;SFAS&#148;)
No.&nbsp;109, <I>Accounting for Income Taxes</I>. Under SFAS
No.&nbsp;109, deferred tax assets and liabilities are based on
differences between the financial reporting and tax basis of
assets and liabilities and are measured using the enacted tax
rates that are expected to be in effect when the differences
reverse. In addition, in accordance with SFAS&nbsp;No.&nbsp;109,
a valuation allowance is required to be recognized if it is not
believed to be &#147;more likely than not&#148; that a deferred
tax asset will be realized.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Net Income (Loss) Attributable to Common Stockholders per
    Share</I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company applies the provisions of EITF Issue No.&nbsp;03-6,
<I>Participating Securities and the Two&nbsp;&#151;
Class&nbsp;Method under FASB Statement&nbsp;128 </I>(&#147;EITF
No.&nbsp;<FONT style="white-space: nowrap">03-6&#148;),</FONT>
which established standards regarding the computation of
earnings per share by companies with participating securities or
multiple classes of common stock. The Company&#146;s
Series&nbsp;AA, BB and CC convertible preferred stock and
Series&nbsp;A through E cumulative redeemable convertible
preferred stock are participating securities due to their
participation rights related to cash dividends declared by the
Company. The holders of the Company&#146;s Series&nbsp;AA, BB
and CC convertible preferred stock are entitled to receive a
proportionate share of cash dividends declared on the
Company&#146;s common stock, calculated on an as if-converted
basis. In addition, the holders of the Company&#146;s
Series&nbsp;A through E cumulative redeemable convertible
preferred stock are entitled to receive dividends out of any
assets legally available, prior and in preference to any
declaration or payment of any dividend (payable other than in
common stock or other non-redeemable equity securities and
rights entitling the holder to receive additional shares of
common stock of the Company) on the common stock of the Company,
at a per share rate of $1.788&nbsp;per annum, or, if greater, an
amount equal to that paid on any other outstanding shares of the
Company. Such dividends accrue and are cumulative.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EITF No.&nbsp;<FONT style="white-space: nowrap">03-6</FONT>
requires net income (loss) attributable to common stockholders
for the period to be allocated to common stock and participating
securities to the extent that each security may share in
earnings as if all of the earnings for the period had been
distributed. As a result, basic net income (loss) attributable
to common stockholders per share is calculated by dividing
undistributed net income (loss) allocable to common stockholders
by the weighted average number of shares outstanding during the
period. Diluted net income (loss) attributable to common
stockholders per share is computed by dividing net income (loss)
for the period by the weighted average number of common and
potential common shares outstanding during the period if the
effect is dilutive. Potential common shares are comprised of
incremental shares of common stock issuable upon the exercise of
stock options and warrants and upon the conversion of preferred
stock. EITF
No.&nbsp;<FONT style="white-space: nowrap">03-6</FONT> does not
require the presentation of basic and diluted earning per share
information for securities other than common stock; therefore,
the Company has only disclosed earnings per share amounts
pertaining to its common stock. In compliance with EITF
No.&nbsp;03-6, the Company&#146;s preferred stock does not
participate in losses, and therefore they are not included in
the computation of net loss attributable to common stockholders
per share.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-11
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information required to compute basic and diluted net income
(loss) attributable to common stockholders per share is as
follows:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="63%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Year Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Reconciliation of net income (loss) to undistributed net
    income (loss) allocable to common stockholders for the basic
    computation:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(11,698</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,756</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accretion of preferred stock dividends(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,676</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss) attributable to common stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(17,374</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,178</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,095</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Undistributed net income allocable to Series&nbsp;AA, BB and CC
    convertible preferred stock, if converted(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,730</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Undistributed net income (loss) allocable to common stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(17,374</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(5,178</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,365</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Basic net income (loss) attributable to common stockholders
    per share:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic weighted average shares outstanding</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,201</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,678</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic net income (loss) attributable to common stockholders per
    share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.47</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.09</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Reconciliation of net income (loss) to net income (loss)
    attributable to common stockholders for the diluted
    computation:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(11,698</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,756</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accretion of preferred stock dividends(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,676</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss) attributable to common stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(17,374</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(5,178</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,095</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Diluted net income (loss) attributable to common stockholders
    per share:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic weighted average shares outstanding</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,201</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,678</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Series&nbsp;AA, BB and CC convertible preferred stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,374</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dilutive effect of stock options</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,384</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dilutive effect of common stock warrants</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>430</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted weighted average shares outstanding</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,201</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37,424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,866</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted net income (loss) attributable to common stockholders
    per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.47</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.08</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 3.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Net income is reduced by the contractual amount of dividends
    ($1.788&nbsp;per share) due on the Company&#146;s Series&nbsp;A
    through E cumulative redeemable convertible preferred stock.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    In the years ended March&nbsp;31, 2004 and 2005, net loss
    attributable to common stockholders is not allocated to the
    preferred stockholders because the Company&#146;s preferred
    stock does not participate in losses. In the year ended
    March&nbsp;31, 2006, net income attributable to common
    stockholders is reduced by the participation rights of the
    Series&nbsp;AA, BB and CC convertible preferred stock related to
    cash dividends declared by the Company. Net income attributable
    to common stockholders is not allocated</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-12

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    to the Series&nbsp;A through E cumulative redeemable convertible
    preferred stock because such stockholders only participate in
    cash dividends in excess of their contractual dividend amount of
    $1.788&nbsp;per share, and the Company did not have the ability
    to distribute amounts in excess of $1.788&nbsp;per share in the
    year ended March&nbsp;31, 2006.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table summarizes the potential outstanding common
stock of the Company at the end of each period, which has been
excluded from the computation of diluted net income (loss)
attributable to common stockholders per share, as its effect is
anti-dilutive.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="71%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Year Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Stock options</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,529</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Convertible preferred stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,039</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,039</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,665</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Common stock warrants</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total options, preferred stock and warrants exercisable or
    convertible into common stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48,011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,665</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Software Development Costs</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Research and development expenditures are charged to operations
as incurred. SFAS&nbsp;No.&nbsp;86, <I>Accounting for the Costs
of Computer Software to Be Sold, Leased or Otherwise
Marketed</I>, requires capitalization of certain software
development costs subsequent to the establishment of
technological feasibility. Based on the Company&#146;s software
development process, technological feasibility is established
upon completion of a working model, which also requires
certification and extensive testing. Costs incurred by the
Company between completion of the working model and the point at
which the product is ready for general release historically have
been immaterial.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Cash and Cash Equivalents</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company considers all highly liquid debt instruments
purchased with maturity of three months or less at the date of
acquisition to be cash equivalents.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Accounts Receivable and Allowance for Doubtful
    Accounts</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Accounts receivable consist of amounts due to the Company from
normal business activities. The Company maintains an allowance
for estimated losses resulting from the inability of its
customers to make required payments. The Company estimates
uncollectible amounts based upon historical bad debts,
evaluation of current customer receivable balances, age of
customer receivable balances, the customer&#146;s financial
condition and current economic trends.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Concentration of Credit Risk</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company grants credit to customers in a wide variety of
industries worldwide and generally does not require collateral.
Credit losses relating to these customers have been minimal.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company had revenues from the U.S.&nbsp;Federal government
which represented 13%, 9% and 8% of total revenues for the years
ended March&nbsp;31, 2004, 2005 and 2006, respectively. With the
exception of certain annual customer support contracts, the
Company generally does not sell directly to the
U.S.&nbsp;Federal government but rather uses several federal
resellers who, individually, do not represent more than 10% of
total revenues for the respective periods.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-13

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
One customer accounted for approximately 12% and 18% of total
revenues for the year ended March&nbsp;31, 2005 and 2006,
respectively. No one customer accounted for more than 10% of
total revenues for the years ended March&nbsp;31, 2004. One
customer accounted for 23% of accounts receivable as of
March&nbsp;31, 2006. No one customer accounted for more than 10%
of accounts receivable as of March&nbsp;31, 2005.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Fair Value of Financial Instruments</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The carrying amounts of cash and cash equivalents, accounts
receivable, accounts payable and the term loan approximate their
fair values due to the short-term maturity of these instruments.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Property and Equipment</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Property and equipment are stated at cost, less accumulated
depreciation and amortization. The Company provides for
depreciation on property and equipment on a straight-line basis
over the estimated useful lives of the assets, generally
eighteen months to three years. Leasehold improvements are
amortized over the shorter of the useful life of the improvement
or the term of the related lease.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Long-Lived Assets</I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company reviews its long-lived assets for impairment in
accordance with SFAS&nbsp;No.&nbsp;144, <I>Accounting for the
Impairment or Disposal of Long-Lived Assets</I>, whenever events
or changes in circumstances indicate that the carrying amount of
the assets may not be fully recoverable. To determine the
recoverability of its long-lived assets, the Company evaluates
the estimated future undiscounted cash flows that are directly
associated with, and that are expected to arise as a direct
result of, the use and eventual disposition of the long-lived
asset. If the estimated future undiscounted cash flows
demonstrate that recoverability is not probable, an impairment
loss would be recognized. An impairment loss would be calculated
based on the excess carrying amount of the long-lived asset over
the long-lived asset&#146;s fair value. The fair value is
determined based on valuation techniques such as a comparison to
fair values of similar assets. There were no impairment charges
recognized during the years ended March&nbsp;31, 2004, 2005 and
2006.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Deferred Offering Costs</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Costs directly attributable to the Company&#146;s initial public
offering have been deferred and capitalized as part of Other
Assets. These costs will be charged against the proceeds of the
initial public offering once completed. The total amount
deferred as of March&nbsp;31, 2006 was approximately $855.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Deferred Revenue</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Deferred revenues represent amounts collected from, or invoiced
to, customers in excess of revenues recognized. This results
primarily from the billing of annual customer support
agreements, as well as billings for other professional services
fees that have not yet been performed by the Company and
billings for license fees that are deferred due to one or more
of the basic revenue recognition criteria not being met. The
value of deferred revenues will increase or decrease based on
the timing of invoices and recognition of software revenue. The
Company expenses internal direct and incremental costs related
to contract acquisition and origination as incurred.
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-14

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Deferred revenue consists of the following:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; ">

<TR style="font-size: 1pt;">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred software revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>711</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,957</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred services revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,562</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,808</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>19,273</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>29,765</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-current:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred services revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,281</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,036</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Accounting for Stock-Based Compensation</I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company accounts for its stock-based employee compensation
plans using the intrinsic value method under the recognition and
measurement principles of APB Opinion No.&nbsp;25, <I>Accounting
for Stock Issued to Employees,</I> and related interpretations.
The Company recognized $4, $21 and $1,128 of compensation
expense during the fiscal years ended March&nbsp;31, 2004, 2005
and 2006, respectively, related to the issuance of options with
an exercise price below the fair market value of the common
stock at the date of issuance. In addition, the Company
recognized $263 of compensation expense in the year ended
March&nbsp;31, 2006 related to the acceleration of the vesting
period relating to 81&nbsp;stock options.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-15

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 15pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In accordance with SFAS&nbsp;No.&nbsp;148, <I>Accounting for
Stock-Based Compensation&nbsp;&#151; Transition and
Disclosure&nbsp;&#151; an amendment of FASB Statement
No.&nbsp;123</I>, the following table illustrates the effect on
net income (loss) attributable to common stockholders if the
Company had applied the fair value recognition provisions of
SFAS&nbsp;No.&nbsp;123 to stock-based employee compensation:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Year Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(11,698</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,756</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less: Accretion of preferred stock dividends</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,676</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,661</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss) attributable to common stockholders, as
    reported</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(17,374</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,178</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,095</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Add: Stock-based compensation recorded under APB&nbsp;25</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,391</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less: Stock-based compensation expense determined under fair
    value method for all awards</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,321</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,438</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,321</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pro forma net income (loss) attributable to common stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(21,691</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,595</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,165</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less: Undistributed net income allocable to Series&nbsp;AA, BB
    and CC convertible preferred stock, if converted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(395</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pro forma undistributed net income (loss) allocable to common
    stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(21,691</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(9,595</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>770</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net income (loss) attributable to common stockholders per share,
    as reported:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.47</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.09</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.47</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.14</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.08</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pro forma net income (loss) attributable to common stockholders
    per share:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.58</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.26</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.02</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.58</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.26</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.02</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The pro forma information presented above has been determined as
if employee stock options were accounted for under the fair
value method of SFAS&nbsp;No.&nbsp;123. The fair value for these
options was estimated at the date of grant using the
Black-Scholes option-pricing model.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The weighted average assumptions that were used for option
grants in the respective periods are as follows:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="73%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Year Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dividend yield</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>None</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>None</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>None</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Expected volatility</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>54</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Risk-free interest rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.69</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.08</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.26</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Expected life (in years)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.00</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Option valuation models require the input of highly subjective
assumptions, including the expected life of the option. Because
the Company&#146;s employee stock options have characteristics
significantly different from those of traded options and because
changes in the subjective input assumptions can materially
affect the fair value estimate, in management&#146;s opinion,
the existing models do not necessarily provide a reliable,
single measure of the fair value of its employee stock options.
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-16

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Advertising Costs</I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company expenses advertising costs as incurred. Advertising
expenses were $868, $1,268 and $1,551 for the years ended
March&nbsp;31, 2004, 2005 and 2006, respectively.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Foreign Currency Translation</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The functional currency of the Company&#146;s foreign operations
are deemed to be the local country&#146;s currency. In
accordance with SFAS&nbsp;No.&nbsp;52, <I>Foreign Currency
Translation, </I>the assets and liabilities of the
Company&#146;s international subsidiaries are translated at
their respective year-end exchange rates, and revenues and
expenses are translated at average currency exchange rates for
the period. The resulting balance sheet translation adjustments
are included in &#147;Other comprehensive income (loss)&#148;
and are reflected as a separate component of stockholders&#146;
deficit. Foreign currency transaction gains and losses are
immaterial in each year. To date, the Company has not hedged its
exposure to changes in foreign currency exchange rates.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Comprehensive Income (Loss)</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company applies the provisions of SFAS&nbsp;No.&nbsp;130,
<I>Reporting Comprehensive Income.</I> Comprehensive income
(loss) is defined to include all changes in equity, except those
resulting from investments by stockholders and distribution to
stockholders, and is reported in the statement of
stockholders&#146; deficit. Included in the Company&#146;s
comprehensive income (loss) are the net income (loss) and
foreign currency translation adjustments.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Recent Accounting Pronouncements</I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In December 2004, the FASB issued SFAS&nbsp;No.&nbsp;123
(revised 2004), <I>Share-Based Payment
</I>(&#147;SFAS&nbsp;No.&nbsp;123(R)&#148;), which replaces
SFAS&nbsp;No.&nbsp;123 and supersedes APB Opinion No.&nbsp;25,
<I>Accounting for Stock Issued to Employees.</I>
SFAS&nbsp;No.&nbsp;123(R) addresses the accounting for
transactions in which an enterprise receives employee services
in exchange for (a)&nbsp;equity instruments of the enterprise or
(b)&nbsp;liabilities that are based on the fair value of the
enterprise&#146;s equity instruments or that may be settled by
the issuance of such equity instruments.
SFAS&nbsp;No.&nbsp;123(R) requires all share-based payments to
employees, including grants of employee stock options and
restricted stock grants, to be recognized as a compensation cost
based on their fair values. The pro forma disclosures previously
permitted under SFAS&nbsp;No.&nbsp;123 no longer will be an
alternative to financial statement recognition. The Company will
adopt SFAS&nbsp;No.&nbsp;123(R) on April&nbsp;1, 2006 using the
modified prospective approach and expects that the adoption of
SFAS&nbsp;No.&nbsp;123(R) will have a material impact on its
consolidated results of operations, although it will not impact
the Company&#146;s overall financial position. The future
results will be impacted by the number and value of additional
stock option grants subsequent to adoption and the rate of
cancellation of unvested grants. The Company estimates that it
will record stock-based compensation expense of approximately
$5,400 in fiscal 2007 under SFAS&nbsp;No.&nbsp;123(R) using the
Black-Scholes option-pricing method based on existing unvested
options. The stock-based compensation expense will increase when
additional stock option grants are awarded.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-17

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>3.</B></TD>
    <TD>
    <B>Property and Equipment</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Property and equipment consist of the following:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="75%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March 31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Computer equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,316</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,983</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Furniture and fixtures</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,344</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Purchased software</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>924</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other machinery and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,787</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,278</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Leasehold improvements</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>912</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,738</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,441</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less accumulated depreciation and amortization</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(13,653</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14,119</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,085</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,322</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company recorded depreciation and amortization expense of
$1,425, $1,431 and $1,682 for the years ended March&nbsp;31,
2004, 2005 and 2006, respectively.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>4.</B></TD>
    <TD>
    <B>Accrued Liabilities</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Accrued liabilities consist of the following:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="76%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March 31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Compensation and related payroll taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,493</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,943</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,958</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,742</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,451</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12,685</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>5.</B></TD>
    <TD>
    <B>Line of Credit and Term Loan</B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In January 2003, the Company entered into an agreement for a
revolving credit facility (the &#147;credit facility&#148;) of
up to $5,000 including an optional term loan of up to $500 for
existing and new equipment purchases. In March 2005, the Company
renewed the credit facility, which expired in March 2006, under
essentially the same terms and conditions as the existing
facility. The term loan accrued interest at the lender&#146;s
prime rate plus 1% and was repayable in declining monthly
amounts over a 30&nbsp;month period from July 2003 through
January 2006. There were no amounts outstanding on the line of
credit or term loan at March&nbsp;31, 2006.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-18

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>6.&nbsp;</B></TD>
    <TD>
    <B>Commitments and Contingencies</B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company leases various office and warehouse facilities under
noncancelable leases which expire on various dates through
April&nbsp;30, 2010. Future minimum lease payments under all
operating leases at March&nbsp;31, 2006 are as follows:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="86%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year ending March&nbsp;31:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2007</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,784</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2008</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,392</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2009</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>891</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2010</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>178</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2011</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2"><FONT style="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,293</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Rental expenses were $2,427, $2,618 and $2,844 for the years
ended March&nbsp;31, 2004, 2005 and 2006, respectively.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company offers a
<FONT style="white-space: nowrap">90-day</FONT> limited product
warranty for its software. To date, costs related to this
product warranty have not been material.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the normal course of its business, the Company may be
involved in various claims, negotiations and legal actions;
however, at March&nbsp;31, 2004, 2005 and 2006, the Company is
not party to any litigation which will have a material effect on
the Company&#146;s financial position, results of operations or
cash flows.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company provides certain provisions within its software
licensing agreements to indemnify its customers from any claim,
suit or proceeding arising from alleged or actual intellectual
property infringement. These provisions continue in perpetuity,
along with the Company&#146;s software licensing agreements. The
Company has never incurred a liability relating to one of these
indemnification provisions, and management believes that the
likelihood of any future payout relating to these provisions is
remote. Therefore, the Company has not recorded a liability
during any period for these indemnification provisions.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>7.</B></TD>
    <TD>
    <B>Cumulative Redeemable Convertible Preferred Stock:
    Series&nbsp;A through E</B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has 7,000 authorized shares and has issued
3,166&nbsp;shares of Series&nbsp;A through E Cumulative
Redeemable Convertible Preferred Stock, par value of
$.01&nbsp;per share (&#147;Series&nbsp;A through E&#148; Stock).
The Series&nbsp;A through E Stock is entitled to receive
dividends out of any assets legally available, prior and in
preference to any declaration or payment of any dividend
(payable other than in common stock or other non-redeemable
equity securities and rights entitling the holder to receive
additional shares of common stock of the Company) on the common
stock of the Company, at a per share rate of $1.788&nbsp;per
annum, or, if greater, an amount equal to that paid on any other
outstanding shares of the Company. Such dividends accrue and are
cumulative.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-19

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The consideration paid for each share of Series&nbsp;A through E
stock was $14.90 and resulted in aggregate proceeds of
approximately $47,177. The numbers of Series&nbsp;A through E
shares authorized, issued and outstanding at March&nbsp;31, 2006
are as follows:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="32%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Undeclared</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Issued and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Dividends</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Unpaid</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Date of Issuance</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Authorized</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Outstanding</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Per Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Dividends</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Series&nbsp;A</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>May 1996</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,040</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>17.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>35,939</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Series&nbsp;B</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>July 1997</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>346</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,382</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Series&nbsp;C</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>December 1997</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,943</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Series&nbsp;D</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>October 1998</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>247</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,210</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Series&nbsp;E</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom" nowrap>March 1999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,522</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to approval by the holders of a majority of the
Series&nbsp;A through E Stock (voting as a single class) and any
anti-dilution adjustments, the Series&nbsp;A through E Preferred
Stock shall be convertible, in whole or in part, into:
(i)&nbsp;four shares of Common Stock and (ii)&nbsp;a cash
payment of $14.85&nbsp;per share plus all accrued but unpaid
dividends of $1.788&nbsp;per share per year. Any election by the
holders of the Series&nbsp;A through E Stock, made before a
qualified initial public offering, to convert any share of
Series&nbsp;A through E Preferred Stock, as described above,
shall require the approval of a majority of Series&nbsp;AA and
Series&nbsp;CC Preferred Stock, each voting as a separate class.
The Company also has a right of first refusal to purchase the
Series&nbsp;A through E Stock from any holder who intends to
sell their shares.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon a liquidation event (including a sale of substantially all
assets, merger, reorganization or other transaction in which
more than 50% of the outstanding securities of the Company are
transferred) or a qualified initial public offering, the Company
is obligated to pay the aggregate cash amount of $14.85&nbsp;per
share plus the aggregate amount of unpaid dividends. A qualified
initial public offering is an initial public offering of the
Company&#146;s stock at a price of at least $6.26&nbsp;per
share, subject to adjustment, and resulting in net proceeds of
at least $40,000. The Company has the option to pay the cash
amount and accrued dividends to predominantly all the holders of
Series&nbsp;A through E Stock in cash, by means of a note
payable or any combination thereof. The aggregate amount of
accrued dividends, the cash liquidation amount of
$14.85&nbsp;per share plus the par value of common shares is
$99,015 at March&nbsp;31, 2006.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>8.</B></TD>
    <TD>
    <B>Stockholders&#146; Deficit</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Common Stock, the Series&nbsp;A through E Stock, the
Series&nbsp;AA Preferred Stock (&#147;Series&nbsp;AA
Stock&#148;), the Series&nbsp;BB Preferred Stock
(&#147;Series&nbsp;BB Stock&#148;) and the Series&nbsp;CC
Preferred Stock (&#147;Series&nbsp;CC Stock&#148;) will vote
together as a single class on all matters submitted for
stockholder consent or approval, with holders of the
Series&nbsp;A through E Preferred Stock having 40 votes for each
share of Series&nbsp;A through E Preferred Stock held. The
Series&nbsp;A through E Stock, the Series&nbsp;AA Stock, the
Series&nbsp;BB Stock and the Series&nbsp;CC Stock will also each
vote separately as a class on certain matters.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The holders of the Company&#146;s Series&nbsp;AA Stock,
Series&nbsp;BB Stock and Series&nbsp;CC Stock are entitled to
receive a proportionate share of cash dividends declared on the
Company&#146;s common stock, calculated on an as if-converted
basis. In the event the Company declares any other dividend or
distribution payable in securities of other persons, evidences
of indebtedness issued by the Company or other persons, assets
(excluding cash dividends) or options or rights to purchase any
such securities or evidence of indebtedness, holders of the
Company&#146;s Series&nbsp;AA Stock, Series&nbsp;BB Stock,
Series&nbsp;CC Stock and Series&nbsp;A through E Stock are
entitled to receive a proportionate share of any such dividend
or distribution on an as if-converted basis.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-20

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Series&nbsp;AA Convertible Preferred Stock</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In April 2000, the Company issued 4,362&nbsp;shares of
Series&nbsp;AA Convertible Preferred Stock at $5.73&nbsp;per
share. The Series&nbsp;AA Stock will automatically convert into
Common Stock at the then applicable conversion ratio at the
closing of an initial public offering of the Company&#146;s
stock at a price of at least $6.26&nbsp;per share, subject to
adjustment, and resulting in net proceeds of at least $40,000.
The Series&nbsp;AA stockholders also have anti-dilution
protection on a weighted-average basis, subject to customary
exclusions. The conversion ratio for Series&nbsp;AA holders is
1.028:1.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the event of any liquidation or winding up of the Company
(including a sale of substantially all assets, merger,
reorganization or other transaction in which more than 50% of
the outstanding securities of the Company are transferred), the
holders of the Series&nbsp;AA Stock shall be entitled to
receive, in preference to the holders of the Series&nbsp;A
through E Stock, the Series&nbsp;BB Stock and the Common Stock,
and on parity with the holders of the Series&nbsp;CC Stock, an
amount equal to $5.73, which is the amount of the original
purchase price, plus all declared but unpaid dividends on such
shares. The balance of the proceeds shall be paid to the holders
of the Common Stock and other series of preferred stock in
accordance with the Company&#146;s certificate of incorporation.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Series&nbsp;BB Convertible Preferred Stock</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In November 2000, the Company issued 2,758&nbsp;shares of
Series&nbsp;BB Convertible Preferred Stock at $12.10&nbsp;per
share. The Series&nbsp;BB stockholders have the option to
convert all or a portion of their shares into Common Stock on a
1:1 basis, subject to anti-dilution adjustments as described in
the purchase agreement. The Series&nbsp;BB Stock will
automatically convert into common shares at the then applicable
conversion ratio at the closing of an initial public offering of
the Company&#146;s stock at a price of at least $6.26&nbsp;per
share, subject to adjustment, and resulting in net proceeds of
at least $40,000. The Series&nbsp;BB stockholders have no
anti-dilution protections.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the event of any liquidation or winding up of the Company
(including a sale of substantially all assets, merger,
reorganization or other transaction in which more than 50% of
the outstanding securities of the Company are transferred), the
holders of the Series&nbsp;BB Stock shall be entitled to
receive, in preference to the holders of the Series&nbsp;A
through E Stock and the Common Stock, an amount equal to $12.10,
which is the amount of the original purchase price, plus all
declared but unpaid dividends on such shares. The balance of the
proceeds shall be paid to the holders of the Common Stock and
other series of preferred stock in accordance with the
Company&#146;s certificate of incorporation.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Series&nbsp;CC Convertible Preferred Stock</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In February 2002 and September 2003, the Company issued 7,341
and 4,791&nbsp;shares, respectively, totaling 12,132&nbsp;shares
of Series&nbsp;CC Convertible Preferred Stock at $3.13
(&#147;Series&nbsp;CC Stock&#148;) per share. The Series&nbsp;CC
stockholders have the option to convert all or a portion of
their shares into Common Stock on a 1:1 basis, subject to
anti-dilution adjustments as described in the purchase
agreement. The Series&nbsp;CC Preferred Stock will automatically
convert into common shares at the then applicable conversion
ratio at the closing of an initial public offering of the
Company&#146;s stock at a price of at least $6.26&nbsp;per
share, subject to adjustment, and resulting in net proceeds of
at least $40,000. The Series&nbsp;CC stockholders have
anti-dilution protection on a weighted-average basis, subject to
customary exclusions.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the event of any liquidation or winding up of the Company
(including a sale of substantially all assets, merger,
reorganization or other transaction in which more than 50% of
the outstanding securities of the Company are transferred), the
stockholders of the Series&nbsp;CC Preferred Stock shall be
entitled to receive, in preference to the stockholders of the
Series&nbsp;A through E Preferred Stock, the Series&nbsp;BB
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-21

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
Preferred Stock and the Common Stock, and on parity with the
holders of the Series&nbsp;AA Preferred Stock, an amount equal
to $3.13, which is the amount of the original purchase price,
plus all declared but unpaid dividends on such shares. The
balance of the proceeds shall be paid to the holders of the
Common Stock and other series of preferred stock in accordance
with the Company&#146;s certificate of incorporation. In
addition, so long as any shares of Series&nbsp;CC Preferred
Stock are outstanding, the Company may not, without the approval
of at least a majority of the Series&nbsp;CC Preferred Stock,
(i)&nbsp;sell all or substantially all of its assets,
(ii)&nbsp;approve any merger or consolidation of the Company
whereby (1)&nbsp;the Company is not the surviving entity and
(2)&nbsp;more than 50% of voting power of the surviving entity
is not held by the Company&#146;s stockholders, unless the
consideration to be paid is at least $6.26&nbsp;per share, or
(iii)&nbsp;conduct an initial public offering that has an
offering price of less than $6.26&nbsp;per share, on an as
adjusted basis.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Common Stock Warrants</I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the issuance of Series&nbsp;BB Stock in
November 2000, one investor who is also a customer received a
fully vested warrant to purchase&nbsp;4,465&nbsp;shares of
common stock at an exercise price of $13.57. In July 2003, the
warrant was cancelled and replaced with a fully vested warrant
to purchase up to 3,000&nbsp;shares of common stock at an
exercise price of $6.27&nbsp;per share. The new warrant had an
aggregate fair value of approximately $30 and expires no later
than 15&nbsp;days after the Company gives notice to the holder
of the warrant of its intention to file a registration statement
relating to an initial public offering. The warrant expired
without being exercised in February 2006.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In December 2003, the Company issued a warrant to purchase up to
1,615&nbsp;shares of common stock at an exercise price of
$5.25&nbsp;per share to a customer at about the same time the
Company signed a Software License Agreement with this customer.
The Software License Agreement is cancelable by the customer
without cause at any time. The warrant becomes exercisable in
equal quarterly installments, commencing on the last day of the
quarter ending March&nbsp;31, 2004 and ending on the last day of
the quarter ending December&nbsp;31, 2005. The warrant may also
be net exercised on a cashless basis. The number of common
shares issuable on a cashless basis is equal to the vested
warrants less the number of shares of common stock having an
aggregate market price equal to the aggregate exercise price of
the vested warrants. Market price is determined as the greater
of (i) a product obtained by multiplying the Company&#146;s
trailing 12-month revenues by six and (ii) the price of common
stock sold in a qualified financing transaction within six
months of the cashless exercise. The Company recorded $1,696 as
a non-cash reduction of revenue during the year ended
March&nbsp;31, 2004 in connection with this transaction. As of
March&nbsp;31, 2006, no warrants have been exercised. On June
15, 2006, the holder of the warrant made a cashless exercise as
disclosed in Note&nbsp;13.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-22

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Shares Reserved for Issuance</I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has reserved a sufficient number of shares to allow
for the conversion of convertible preferred stock and cumulative
redeemable convertible preferred stock and for the exercise of
all available options and common stock warrants at
March&nbsp;31, 2006 as follows:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="89%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exercise of common stock options</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,174</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Conversion of Series&nbsp;A Stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,159</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Conversion of Series&nbsp;B Stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,384</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Conversion of Series&nbsp;C Stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,333</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Conversion of Series&nbsp;D Stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>989</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Conversion of Series&nbsp;E Stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>800</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Conversion of Series&nbsp;AA Stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,484</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Conversion of Series&nbsp;BB Stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,758</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Conversion of Series&nbsp;CC Stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,132</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exercise of warrants</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,615</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>48,828</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>9.</B></TD>
    <TD>
    <B>Stock Plans</B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company maintains a stock option plan (the &#147;Plan&#148;)
pursuant to which the Company may grant options to
purchase&nbsp;23,410&nbsp;shares of common stock to certain
officers and employees.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following summarizes the Plan&#146;s activity from
March&nbsp;31, 2003 to March&nbsp;31, 2006:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Weighted-</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Average</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercise</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Options</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Price</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Options outstanding at March&nbsp;31, 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,348</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.33</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Options granted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,022</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.40</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Options exercised</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(168</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>.97</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Options canceled</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(673</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.93</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Options outstanding at March&nbsp;31, 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,529</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.31</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Options granted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.83</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Options exercised</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(62</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.46</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Options canceled</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(459</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.90</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Options outstanding at March&nbsp;31, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.77</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Options granted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.79</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Options exercised</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(303</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.31</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Options canceled</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(867</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.76</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Options outstanding at March&nbsp;31, 2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.78</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The weighted average grant-date fair value of the options
granted with exercise prices equal to the fair value of the
Company&#146;s common stock was $1.51 and $1.72 per share in the
years ended March&nbsp;31, 2004 and 2005, respectively. No
options were granted with exercise prices equal to the fair
value of the Company&#146;s common stock in the year ended
March&nbsp;31, 2006. The weighted average grant-date fair value
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-23

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
of the options granted with exercise prices below the fair value
of the Company&#146;s common stock was $2.19, $1.76 and $3.18
per share in the years ended March&nbsp;31, 2004, 2005 and 2006,
respectively.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table summarizes information on stock options
outstanding under the Plan at March&nbsp;31, 2006:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="34%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Weighted-Average</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Outstanding</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Options</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Weighted-</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Options at</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Remaining</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercisable at</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Average</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Contractual</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercise</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercise</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD align="left" nowrap><B>Range of Exercise Prices</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Life</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Price</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Price</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    $0.0125</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.0125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.0125</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;2.00</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,859</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;2.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,367</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;2.00</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;2.25</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>679</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;2.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;2.25</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;2.35</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;2.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;2.35</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;2.40</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>96</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;2.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;2.40</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;2.50</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;2.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,911</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;2.50</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;2.65</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>770</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;2.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>265</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;2.65</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;3.00</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;3.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,491</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;3.00</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;3.35</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>702</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.59</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;3.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;0.00</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;3.60</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>622</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;3.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>316</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;3.60</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;3.75</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;3.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;0.00</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;4.00</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>638</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;4.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>638</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;4.00</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;4.05</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>327</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;4.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;0.00</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    $0.0125-4.05</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;2.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;2.79</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stock options are granted at the discretion of the Board and
expire 10&nbsp;years from the date of the grant. Options
generally vest over a four-year period. At March&nbsp;31, 2005
and 2006, there were 1,121 and 999 options available for future
grant under the Plan, respectively.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the twelve month period ended March&nbsp;31, 2006, the
Company granted stock options with exercise prices as follows:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="44%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Retrospective</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercise</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fair Value per</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Intrinsic</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD align="left" nowrap><B>Grants Date</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Options Granted</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Price</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Common Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Value</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    May&nbsp;5, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>719</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3.46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1.21</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    July&nbsp;29, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.83</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    September&nbsp;19, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.59</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.24</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    November&nbsp;3, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>749</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.82</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    January&nbsp;26, 2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>669</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.79</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    March&nbsp;2, 2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>327</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.37</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In establishing the Company&#146;s estimates of fair value of
its common stock during the year ended March&nbsp;31, 2006, the
Company performed a retrospective determination of the fair
value of its common stock based upon valuations performed by an
unrelated valuation specialist. The retrospective determination
of fair value of the Company&#146;s common stock utilized the
probability weighted expected returns (&#147;PWER&#148;) method
described in the AICPA Technical Practice Aid, <I>Valuation of
<FONT style="white-space: nowrap">Privately-Held-Company</FONT>
Equity Securities Issued as Compensation</I>.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-24
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The reassessed fair value of the Company&#146;s common stock
underlying 719 options granted to employees on May&nbsp;5, 2005
was determined to be $3.46 per share. The increase in fair value
as compared to the January&nbsp;27, 2005 value was primarily due
to the following:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    For the three months ended March&nbsp;31, 2005, the Company had
    its most profitable quarter in its history, generating earnings
    of approximately $1,600;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Company achieved its first fiscal year of profitability for
    the year ended March&nbsp;31, 2005;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Company entered into an original equipment manufacturer
    arrangement with Hitachi Data Systems; and</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The possibility of an initial public offering remained
    relatively low and a probability estimate of 30% was assigned
    under the PWER method as a result of the significant milestones
    to be achieved.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The reassessed fair value of the Company&#146;s common stock
underlying 923 options granted to employees on July&nbsp;29,
2005 was determined to be $4.18 per share. The increase in fair
value as compared to the May&nbsp;5, 2005 value was primarily
due to the following:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    For the three months ended June&nbsp;30, 2005, revenues and
    earnings exceeded budget;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Company increased its earnings forecast for the remainder of
    fiscal 2006; and</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Company increased the probability estimate for the initial
    public offering scenario under the PWER method to 40% as a
    result of revenues and earnings exceeding budget.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The reassessed fair value of the Company&#146;s common stock
underlying 1,600 options granted to employees on
September&nbsp;19, 2005 was determined to be $4.59 per share. On
September&nbsp;19, 2005, the Company&#146;s compensation
committee awarded options to several key executives. The
underlying assumptions that were in place as of the
July&nbsp;29, 2005 grant date were still in place on
September&nbsp;19, 2005, except the Company increased the
probability estimate for the initial public offering scenario
under the PWER method to 50% as a result of moving closer to a
potential initial public offering and anticipating a profitable
quarter ending September&nbsp;30, 2005.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The reassessed fair value of the Company&#146;s common stock
underlying 749 options granted to employees on November&nbsp;3,
2005 was determined to be $5.17 per share. The increase in fair
value as compared to the September&nbsp;19, 2005 value was
primarily due to the following:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    For the three and six months ended September&nbsp;30, 2005,
    earnings exceeded the Company&#146;s original budget and revised
    forecasts;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    In the six months ended September&nbsp;30, 2005, the Company
    started to achieve substantial revenue growth from its original
    equipment manufacturer arrangements with Dell and Hitachi Data
    Systems; and</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Company increased the probability estimate for the initial
    public offering scenario under the PWER method to 60% as a
    result of earnings exceeding forecast and the substantial
    revenue growth the Company achieved from its original equipment
    manufacturer agreements.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-25
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The reassessed fair value of the Company&#146;s common stock
underlying 669 options granted to employees on January&nbsp;26,
2006 was determined to be $5.54 per share. The increase in fair
value as compared to the November&nbsp;3, 2005 value was
primarily due to the following:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    On January&nbsp;10, 2006, the Company initiated the process of
    an initial public offering when it held an organizational
    meeting; as a result, the Company increased the initial public
    offering scenario to 65% under the PWER method;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Company achieved consecutive quarters of profitability for
    the first time;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    For the three and nine months ended December&nbsp;31, 2005,
    earnings exceeded original budget and revised forecasts; and</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Company continued to generate cash flows from operations
    significantly exceeding budgeted, revised forecast and prior
    year amounts.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The reassessed fair value of the Company&#146;s common stock
underlying 327 options granted to employees on March&nbsp;2,
2006 was determined to be $6.42 per share. On March&nbsp;2,
2006, the Company&#146;s compensation committee awarded options
to certain strategic new hires. The underlying assumptions that
were in place as of the January&nbsp;26, 2006 grant date were
still in place on March&nbsp;2, 2006, except that the Company
increased the probability estimate for the initial public
offering scenario under the PWER method to 90% as a result of
the imminence of the Company&#146;s potential initial public
offering and anticipating fiscal 2006 earnings would exceed
forecast and budget amounts.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company recorded approximately $9,201 of deferred
<FONT style="white-space: nowrap">stock-based</FONT>
compensation and recognized compensation expense of
approximately $1,128 during the year ended March&nbsp;31, 2006
related to stock options that were granted with an exercise
price that was below the fair value of the Company&#146;s common
stock on the date of grant. The deferred compensation for these
options is being recognized ratably over the
<FONT style="white-space: nowrap">four-year</FONT> vesting
period.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On January&nbsp;26, 2006, the Board of Directors authorized the
creation of the Long-Term Stock Incentive Plan (the
&#147;LTIP&#148;). The LTIP provides for a wide array of equity
compensation vehicles and will become effective upon an initial
public offering at which time the authorized shares will be
determined. Currently, no shares are authorized.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>10.</B></TD>
    <TD>
    <B>Income Taxes</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The components of income (loss) before income taxes were as
follows:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="67%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Year Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Domestic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(6,585</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,778</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12,901</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,113</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,121</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,694</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(11,698</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>657</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,207</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-26

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The components of current income tax expense were as follows:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Year Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006&nbsp;&nbsp;</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Federal</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>239</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    State</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>172</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>451</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The income tax expense for the year ended March&nbsp;31, 2005
and 2006 primarily represents alternative minimum taxes due to
the U.S. federal government as well as various state income
taxes.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="69%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Year Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Statutory federal income tax expense (benefit) rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(34.0</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>34.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    State and local income tax expense (benefit), net of federal
    income tax effect</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2.4</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.9</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Foreign earnings taxed at different rates</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.6</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Permanent differences</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.2</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3.6</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Research credits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14.3</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(111.3</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6.9</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other differences, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.1</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.2</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.9</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Change in valuation allowance</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44.9</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(22.8</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Effective income tax expense (benefit) rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26.5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Deferred tax assets arise due to the recognition of income and
expense items for tax purposes, which differ from those used for
financial statement purposes. The significant components of the
Company&#146;s deferred tax assets are as follows:
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="72%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred tax assets:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net operating losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>42,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>38,120</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation and amortization</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,579</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,974</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>170</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>512</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,045</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred compensation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>425</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Allowance for doubtful accounts and other reserves</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>197</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Tax credits</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,799</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,897</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total deferred tax assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56,684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>54,170</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less valuation allowance</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(56,684</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(54,170</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net deferred tax assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Deferred U.S.&nbsp;income taxes have not been provided on
undistributed earnings of foreign subsidiaries of the Company.
The Company considers the undistributed earnings of its foreign
subsidiaries permanently reinvested in the businesses. These
undistributed foreign earnings could become subject to
U.S.&nbsp;income tax if remitted, or deemed remitted, as a
dividend. Determination of the deferred U.S.&nbsp;income tax
liability on
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-27

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
these unremitted earnings is not practicable, since such
liability, if any, is dependent on circumstances existing at the
time of the remittance.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The cumulative amount of unremitted earnings from the foreign
subsidiaries that is expected to be permanently reinvested was
approximately $81 on March&nbsp;31, 2006.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the year ended March&nbsp;31, 2006, the Company reduced its
valuation allowance by $2,514 to offset current taxes payables.
As of March&nbsp;31, 2006, the Company maintains a full
valuation allowance against its deferred tax asset as there is
not sufficient positive evidence to enable the Company to
conclude that it is more likely than not that the deferred tax
assets will be realized. Even though the Company reported net
income in the year ended March&nbsp;31, 2006, it has incurred
$459 in cumulative losses over the prior three fiscal years and
has incurred $16,869 in cumulative losses over the prior four
fiscal years. In addition, the Company has an accumulated
deficit of approximately $165,148 reported on the consolidated
balance sheet.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At March&nbsp;31, 2006, the Company has federal and state net
operating loss (&#147;NOL&#148;) carryforwards of approximately
$82,481 and $65,747 respectively. The federal NOL carryforwards
expire from 2013 through 2024, and the state NOL carryforwards
expire from 2009 to 2011. At March&nbsp;31, 2006, the Company
also has NOL carryforwards for foreign tax purposes of
approximately $20,952 which begin to expire in 2008.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At March&nbsp;31, 2006, the Company has federal and state
research tax credit carryforwards of approximately $7,146 and
$3,411 respectively. The federal research tax credit
carryforwards expire from 2012 through 2026, and the state
research tax credit carryforwards expire through 2013. At
March&nbsp;31, 2006, the Company has federal Alternative Minimum
Tax credit carryforwards of $340.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>11.&nbsp;</B></TD>
    <TD>
    <B>Employee Benefit Plan</B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has a defined contribution plan, as allowed under
Section&nbsp;401(k) of the Internal Revenue Code, covering
substantially all employees. The Company may make contributions
equal to a discretionary percentage of the employee&#146;s
contributions determined by the Company. The Company has not
made any contributions to the defined contribution plan.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>12.</B></TD>
    <TD>
    <B>Segment Information</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company operates in one reportable segment, storage software
solutions. The Company&#146;s products and services are sold
throughout the world, through direct and indirect sales
channels. The Company&#146;s chief operating decision maker, the
chief executive officer, evaluates the performance of the
Company based upon stand-alone revenue of product channels and
the two geographic regions of the segment discussed below and
does not receive discrete financial information about asset
allocation, expense allocation or profitability from the
Company&#146;s storage products or services.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company is organized into two geographic regions: the United
States and all other countries. All transfers between geographic
regions have been eliminated from consolidated revenues. This
data is presented in accordance with SFAS&nbsp;No.&nbsp;131,
<I>Disclosure about Segments of an Enterprise and Related
Information.</I>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="61%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Year Ended March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenue:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    United States</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>43,227</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>60,562</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>77,762</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,710</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>61,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>82,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>109,472</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-28

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Notes to Consolidated Financial
Statements&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands, except per share data)</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No individual country other than the United States accounts for
10% or more of revenues in the years ended March&nbsp;31, 2004,
2005 and 2006. Revenue included in the &#147;Other&#148; caption
above primarily relates to the Company&#146;s operations in
Europe, Australia and Canada.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>March&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-lived assets:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    United States</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,298</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>638</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,116</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,414</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At March&nbsp;31, 2006, Germany had long-lived assets of $624.
At March&nbsp;31, 2005, the Netherlands had long-lived assets of
$310. No other individual country other than the United States
accounts for 10% or more of long-lived assets as of
March&nbsp;31, 2005 and 2006.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>13.</B></TD>
    <TD>
    <B>Subsequent Events</B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has filed a registration statement on
Form&nbsp;<FONT style="white-space: nowrap">S-1</FONT> with the
Securities and Exchange Commission (&#147;SEC&#148;) relating to
the proposed initial public offering of its common stock. The
Company can give no assurance that the registration statement
will be declared effective by the SEC.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company entered into a $20,000 term loan facility with
Silicon Valley Bank in connection with the payments due to the
holders of its Series&nbsp;A through E Stock. The term loan will
be secured by substantially all of the Company&#146;s assets.
Borrowings under the term loan will bear interest at a rate
equal to <FONT style="white-space: nowrap">30-day</FONT> LIBOR
plus 1.50% with principal and interest to be repaid in quarterly
installments over a
<FONT style="white-space: nowrap">24-month</FONT> period. The
term loan will require the Company to maintain a &#147;quick
ratio,&#148; as defined in the term loan agreement, of at least
1.50 to 1. There are no amounts outstanding on the term loan.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On June&nbsp;15, 2006, the holder of a warrant to purchase
1,615&nbsp;shares of common stock at an exercise price of $5.25
per share made a cashless exercise of the warrant and received
630&nbsp;shares of common stock. In addition, the Company issued
145&nbsp;shares of common stock pursuant to preemptive rights
held by the holders of the Series&nbsp;AA Stock, Series&nbsp;BB
Stock and Series&nbsp;CC Stock (other than individuals that also
own Series&nbsp;A through E&nbsp;Stock) that were triggered by
the exercise of the warrant.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-29
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>CommVault Systems Inc.</B>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='306'></A>
</DIV>

<!-- link1 "Schedule II -- Valuation and Qualifying Accounts" -->

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Schedule&nbsp;II&nbsp;&#151; Valuation and Qualifying
Accounts</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands)</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="47%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Additions&nbsp;&#151;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Balance at</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Charged to</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Balance at</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Beginning of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Costs and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>End of</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Period</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Expenses</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Deductions</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Period</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year Ended March&nbsp;31, 2004:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Allowance for doubtful accounts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>99</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>686</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Valuation allowance for deferred taxes(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>51,130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,257</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>56,387</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year Ended March&nbsp;31, 2005:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Allowance for doubtful accounts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>686</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>107</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>191</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>602</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Valuation allowance for deferred taxes(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>56,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>297</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>56,684</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Year Ended March&nbsp;31, 2006:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Allowance for doubtful accounts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>475</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Valuation allowance for deferred taxes(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>56,684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>54,170</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 3.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Adjustments associated with the Company&#146;s assessment of its
    deferred tax assets. The reduction in the valuation allowance
    for deferred taxes in the year ended March&nbsp;31, 2006 is
    primarily due to utilization of federal and state net operating
    loss carryforwards.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-30
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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<IMG src="y17249a2y1724900.gif" alt="(LOGO)">
</DIV>

<DIV style="margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>PART&nbsp;II</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>INFORMATION NOT REQUIRED IN PROSPECTUS</B>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;13.</B></TD>
    <TD>
    <B><I>Other Expenses of Issuance and Distribution.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table shows the expenses to be incurred in
connection with the offering described in this registration
statement, all of which will be paid by the registrant. All
amounts are estimates, other than the SEC registration fee, the
NASD filing fee and the NASDAQ listing fee.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="83%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    SEC registration fee</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>16,050</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    NASD filing fee</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,500</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    NASDAQ listing fee</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounting fees and expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Legal fees and expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Printing and engraving expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Transfer agent&#146;s fees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Blue sky fees and expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Miscellaneous</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    To be completed by amendment.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;14.</B></TD>
    <TD>
    <B><I>Indemnification of Directors and Officers.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section&nbsp;102 of the Delaware General Corporation Law
(&#147;DGCL&#148;), as amended, allows a corporation to
eliminate the personal liability of directors of a corporation
to the corporation or its stockholders for monetary damages for
a breach of fiduciary duty as a director, except where the
director breached his duty of loyalty, failed to act in good
faith, engaged in intentional misconduct or knowingly violated a
law, authorized the payment of a dividend or approved a stock
repurchase in violation of Delaware law or obtained an improper
personal benefit.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section&nbsp;145 of the DGCL provides, among other things, that
a corporation may indemnify any person who was or is a party or
is threatened to be made a party to any threatened, pending or
completed action, suit or proceeding (other than an action by or
in the right of the corporation) by reason of the fact that the
person is or was a director, officer, agents or employee of the
corporation or is or was serving at the corporation&#146;s
request as a director, officer, agent or employee of another
corporation, partnership, joint venture, trust or other
enterprise, against expenses, including attorneys&#146; fees,
judgments, fines and amounts paid in settlement actually and
reasonably incurred by the person in connection with such
action, suit or proceeding. The power to indemnify applies
(a)&nbsp;if such person is successful on the merits or otherwise
in defense of any action, suit or proceeding or (b)&nbsp;if such
person acted in good faith and in a manner he reasonably
believed to be in the best interests, or not opposed to the best
interests, of the corporation, and with respect to any criminal
action or proceeding, had no reasonable cause to believe his
conduct was unlawful. The power to indemnify applies to actions
brought by or in the right of the corporation as well, but only
to the extent of expenses (including attorneys&#146; fees but
excluding amounts paid in settlement) actually and reasonably
incurred in the defense or settlement of such action and not to
any satisfaction of judgment or settlement of the claim itself,
and with the further limitation that in such actions no
indemnification shall be made in the event of any adjudication
of negligence or misconduct in the performance of duties to the
corporation, unless the court believes that in light of all the
circumstances indemnification should apply.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section&nbsp;174 of the DGCL provides, among other things, that
a director, who willfully or negligently approves of an unlawful
payment of dividends or an unlawful stock purchase or
redemption, shall be held liable for such actions. A director
who was either absent when the unlawful actions were approved or
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">II-1

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
dissented at the time, may avoid liability by causing his or her
dissent to such actions to be entered on the books containing
the minutes of the meetings of the board of directors at the
time such actions occurred or immediately after such absent
director receives notice of the unlawful acts.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our certificate of incorporation provides that, pursuant to
Delaware law, our directors shall not be liable for monetary
damages for breach of the directors&#146; fiduciary duty of care
to us and our stockholders. This provision in the certificate of
incorporation does not eliminate the duty of care, and in
appropriate circumstances equitable remedies such as injunctive
or other forms of non-monetary relief will remain available
under Delaware law. In addition, each director will continue to
be subject to liability for breach of the director&#146;s duty
of loyalty to us or our stockholders, for acts or omissions not
in good faith or involving intentional misconduct or knowing
violations of law, for actions leading to improper personal
benefit to the director and for payment of dividends or approval
of stock repurchases or redemptions that are unlawful under
Delaware law. The provision also does not affect a
director&#146;s responsibilities under any other law, such as
the federal securities laws or state or federal environmental
laws.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our bylaws provide that we must indemnify our directors and
officers to the fullest extent permitted by Delaware law and
require us to advance litigation expenses upon our receipt of an
undertaking by or on behalf of a director or officer to repay
such advances if it is ultimately determined that such director
or officer is not entitled to indemnification. The
indemnification provisions contained in our bylaws are not
exclusive of any other rights to which a person may be entitled
by law, agreement, vote of stockholders or disinterested
directors or otherwise. We intend to obtain directors&#146; and
officers&#146; liability insurance in connection with this
offering.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, we have entered or, concurrently with this
offering, will enter, into agreements to indemnify our directors
and certain of our officers in addition to the indemnification
provided for in the certificate of incorporation and bylaws.
These agreements will, among other things, indemnify our
directors and some of our officers for certain expenses
(including attorneys&#146; fees), judgments, fines and
settlement amounts incurred by such person in any action or
proceeding, including any action by or in our right, on account
of services by that person as a director or officer of CommVault
or as a director or officer of any of our subsidiaries, or as a
director or officer of any other company or enterprise that the
person provides services to at our request.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriting agreement provides for indemnification by the
underwriters of us and our officers and directors, and by us of
the underwriters, for certain liabilities arising under the
Securities Act or otherwise in connection with this offering.
</DIV>

<DIV style="margin-top: 15pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;15.</B></TD>
    <TD>
    <B><I>Recent Sales of Unregistered Securities.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Since January&nbsp;1, 2003, the registrant has sold the
following securities without registration under the Securities
Act of 1933:
</DIV>

<DIV style="margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    In July 2003, the registrant issued an amended and restated
    warrant to
    purchase &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of its common stock at an exercise price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share to EMC Investment Corporation, an accredited investor. The
    warrant expired without being exercised on February&nbsp;2,
    2006. The amended and restated warrant was issued to replace a
    warrant to
    purchase &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of the registrant&#146;s common stock at an exercise price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share, subject to certain adjustments, that had been issued by
    the registrant to the holder in November 2000. The original
    warrant was issued to the holder in connection with the
    holder&#146;s purchase of shares of the registrant&#146;s
    Series&nbsp;BB preferred stock. No other persons were offered
    the opportunity to purchase the warrant or participate in the
    exchange and no commission or other remuneration was paid or
    given directly or indirectly to any person for soliciting the
    exchange. The issuance of the replacement warrant was therefore
    exempt from registration pursuant to Section&nbsp;3(a)(9) of the
    Securities Act.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">II-2

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<DIV style="margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    In September 2003, the registrant sold 4,790,802&nbsp;shares of
    registrant&#146;s Series&nbsp;CC preferred stock to four
    individuals and 21 investment funds and other investment
    entities for approximately $15&nbsp;million. Each of the
    investors was an accredited investor. The offer and sale was
    exempt from registration pursuant to Section&nbsp;4(2) of the
    Securities Act and Regulation&nbsp;D promulgated thereunder.</TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    In December 2003, the registrant issued a warrant to
    purchase &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of its common stock at an exercise price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share to Dell Ventures, L.P., an accredited investor, in
    connection with the registrant&#146;s entering into a software
    licensing agreement with Dell Products, L.P. as an original
    equipment manufacturer. The number of warrant shares and
    exercise price are subject to customary antidilution adjustments
    upon the occurrence of certain events. The issuance of the
    warrant was exempt from registration pursuant to
    Section&nbsp;4(2) of the Securities Act.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 9.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    On June&nbsp;15, 2006, the registrant
    issued &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of its common stock upon the cashless exercise of the warrant
    held by Dell Ventures, L.P. that was issued to it in December
    2003. The issuance of the shares was exempt from registration
    pursuant to Section&nbsp;4(2) of the Securities Act.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 9.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    On June&nbsp;15, 2006, the registrant
    issued &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of its common stock to the holders of its Series&nbsp;AA, BB and
    CC preferred stock pursuant to preemptive rights held by those
    stockholders that were triggered by the issuance of shares to
    Dell Ventures, L.P. upon the cashless exercise a warrant. The
    shares were issued to the holders of the Series&nbsp;AA, BB and
    CC preferred stock for no consideration. As there was no
    investment decision required by the holders of the
    Series&nbsp;AA, BB and CC preferred stock and the holders paid
    no consideration for the shares, there was no &#147;sale&#148;
    as defined in Section&nbsp;2(a)(3) of the Securities Act of the
    shares of common stock and the issuance of the shares was not
    subject to Securities Act.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 9.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(6)&nbsp;</TD>
    <TD align="left">
    Concurrently with the closing of this offering, the registrant
    will
    issue &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of its common stock to Aman Ventures, Mark Francis,
    K.&nbsp;Flynn McDonald, Greg Reyes, Reyes Family Trust, Van
    Wagoner Capital Partners, L.P., Van Wagoner Crossover Fund, L.P.
    and Marc Weiss in a private placement exempt from registration
    pursuant to Section&nbsp;4(2) of the Securities Act.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD style="font-size: 9.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(7)&nbsp;</TD>
    <TD align="left">
    From January&nbsp;1, 2003 to the date of this filing, the
    registrant granted options to purchase
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock under the registrant&#146;s 1996 Stock Option
    Plan.
    Approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    of common stock have been issued upon exercise of these options.
    All options were granted under Rule&nbsp;701 promulgated under
    the Securities Act or, in the case of certain options granted to
    N. Robert Hammer, Section&nbsp;4(2) of the Securities Act.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There were no underwriters employed in connection with any of
the transactions set forth in this Item&nbsp;15. With respect to
each of the transactions described in paragraphs&nbsp;(2), (3),
(4), (6) and (7) (with respect to the certain options granted to
N. Robert Hammer), the recipients of securities represented
their intention to acquire the securities for investment only
and not with a view to any distribution thereof. Appropriate
legends were affixed to the share certificates and other
instruments issued in such transactions. All recipients were
given the opportunity to ask questions and receive answers from
representatives of the registrant concerning the business and
financial affairs of the registrant. Each investor represented
and acknowledged to CommVault in writing that it had this
opportunity. Each of the recipients that were employees of the
registrant had access to such information through their
employment with the registrant. CommVault did not engage in any
form of general solicitation or general advertisement with
respect to any of the transactions set forth in this
Item&nbsp;15.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">II-3

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 15pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;16.</B></TD>
    <TD>
    <B><I>Exhibits and Financial Statement Schedules.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;<I>Exhibits</I>
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See the exhibit index, which is incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;<I>Financial Statement Schedules</I>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Schedule&nbsp;II&nbsp;&#151; Valuation and Qualifying Accounts
for the years ended March&nbsp;31, 2004, 2005 and 2006 (included
on page&nbsp;<FONT style="white-space: nowrap">F-29).</FONT>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 15pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>Item&nbsp;17.</B></TD>
    <TD>
    <B><I>Undertakings.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;The undersigned registrant hereby undertakes to provide
to the underwriters at the closing specified in the underwriting
agreements, certificates in such denominations and registered in
such names as required by the underwriters to permit prompt
delivery to each purchaser.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;Insofar as indemnification for liabilities arising
under the Securities Act of 1933 may be permitted to directors,
officers and controlling persons of the registrant pursuant to
the foregoing provisions, or otherwise, the registrant has been
advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as
expressed in the Securities Act and is, therefore,
unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the
registrant of expenses incurred or paid by a director, officer
or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the
securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by
controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Securities Act and
will be governed by the final adjudication of such issue.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;The undersigned registrant hereby undertakes that:
</DIV>

<DIV style="margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (1)&nbsp;For purposes of determining any liability under the
    Securities Act of 1933, the information omitted from the form of
    prospectus filed as part of this registration statement in
    reliance upon Rule&nbsp;430A and contained in a form of
    prospectus filed by the registrant pursuant to
    Rule&nbsp;424(b)(1) or (4)&nbsp;or 497(h) under the Securities
    Act shall be deemed to be part of this registration statement as
    of the time it was declared effective.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (2)&nbsp;For the purpose of determining any liability under the
    Securities Act of 1933, each post-effective amendment that
    contains a form of prospectus shall be deemed to be a new
    registration statement relating to the securities offered
    therein, and the offering of such securities at that time shall
    be deemed to be the initial <I>bona fide </I>offering thereof.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">II-4

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>SIGNATURES</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of the Securities Act of 1933, the
registrant has duly caused this registration statement to be
signed on its behalf by the undersigned, thereunto duly
authorized, in the city of Oceanport, State of New Jersey, on
June&nbsp;30, 2006.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    COMMVAULT SYSTEMS, INC.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 48pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="40%"></TD>
    <TD width="2%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD align="left">
    /s/ N. ROBERT HAMMER</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 3.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <DIV style="border-top: 1pt solid black; font-size: 1pt; margin-top: 2pt" align="left">&nbsp;</DIV></TD>
</TR>

<TR valign="top"  style="font-size: 10.0pt;color: #000000; background: #ffffff;">
    <TD>&nbsp;</TD>
    <TD align="center">
    N. Robert Hammer</TD>
</TR>

<TR valign="top"  style="font-size: 10.0pt;color: #000000; background: #ffffff;">
    <TD>&nbsp;</TD>
    <TD align="center">
    <I>Chairman, President and Chief Executive Officer</I></TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>POWER OF ATTORNEY</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed by the following persons
in the capacities indicated on June&nbsp;30, 2006.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="3" align="center" nowrap><B>Signature</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Title</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ N. ROBERT HAMMER*<BR>
    <DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>N.
    Robert Hammer</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Chairman, President and Chief Executive Officer</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ LOUIS F. MICELI*<BR>
    <DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>Louis
    F. Miceli</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Vice President, Chief Financial Officer</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ BRIAN CAROLAN*<BR>
    <DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>Brian
    Carolan</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Controller</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ THOMAS BARRY*<BR>
    <DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>Thomas
    Barry</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ FRANK J. FANZILLI, JR.*<BR>
    <DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>Frank
    J. Fanzilli,&nbsp;Jr.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ EDWARD A. JOHNSON*<BR>
    <DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>Edward
    A. Johnson</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ ARMANDO GEDAY*<BR>
    <DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>Armando
    Geday</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ KEITH GEESLIN*<BR>
    <DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>Keith
    Geeslin</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ F. ROBERT KURIMSKY*<BR>
    <DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>F.
    Robert Kurimsky</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ DANIEL PULVER*<BR>
    <DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>Daniel
    Pulver</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">II-5

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; ">

<TR style="font-size: 1pt;">
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="3" align="center" nowrap><B>Signature</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Title</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ GARY SMITH*<BR>
    <DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>Gary
    Smith</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    /s/ DAVID F. WALKER*<BR>
    <DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>David
    F. Walker</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    *By:&nbsp;/s/ N. ROBERT HAMMER<BR>
    <DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>N.
    Robert Hammer<BR>
    Attorney-in-fact</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">II-6

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>INDEX TO EXHIBITS</B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="3" align="center" nowrap><B>No.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Description</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1</TD>
    <TD align="left" valign="top" nowrap>.1*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of Underwriting Agreement</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3</TD>
    <TD align="left" valign="top" nowrap>.1**</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amended and Restated Certificate of Incorporation of CommVault
    Systems, Inc., dated as of August&nbsp;29, 2003</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3</TD>
    <TD align="left" valign="top" nowrap>.2*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amended and Restated Certificate of Incorporation of CommVault
    Systems, Inc., dated as
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3</TD>
    <TD align="left" valign="top" nowrap>.3*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amended and Restated Bylaws of CommVault Systems, Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.1*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of Common Stock Certificate</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>5</TD>
    <TD align="left" valign="top" nowrap>.1*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Opinion of Mayer, Brown, Rowe&nbsp;&#38; Maw LLP</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>9</TD>
    <TD align="left" valign="top" nowrap>.1*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Voting Trust Agreement</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Loan and Security Agreement, dated May&nbsp;2, 2006, between
    Silicon Valley Bank and CommVault Systems, Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.2*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    CommVault Systems, Inc. 1996 Stock Option Plan, as amended</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.3*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    CommVault Systems, Inc. 2006 Long-Term Stock Incentive Plan</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.4*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of Non-Qualified Stock Option Agreement</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.5**</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Employment Agreement, dated as of February&nbsp;1, 2004, between
    CommVault Systems, Inc. and N.&nbsp;Robert Hammer</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.6**</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of Employment Agreement between CommVault Systems, Inc. and
    Alan G. Bunte and Louis F. Miceli</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.7**</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of Corporate Change of Control Agreement between CommVault
    Systems, Inc. and Alan G. Bunte and Louis F. Miceli</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.8**</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of Corporate Change of Control Agreement between CommVault
    Systems, Inc. and David West, Ron Miiller, Scott Mercer and
    Steven Rose</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.9**</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of Indemnity Agreement between CommVault Systems, Inc. and
    each of its current officers and directors</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.10**</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amended and Restated Registration Rights Agreement, dated as of
    September&nbsp;2, 2003, by and among CommVault Systems, Inc. and
    the Series&nbsp;AA investors</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.11**</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amended and Restated Registration Rights Agreement, dated as of
    September&nbsp;2, 2003, by and among CommVault Systems, Inc. and
    the Series&nbsp;BB investors</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.12**</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amended and Restated Registration Rights Agreement, dated as of
    September&nbsp;2, 2003, by and among CommVault Systems, Inc. and
    the Series&nbsp;CC investors</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.13*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Registration Rights Agreement,
    dated &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006 by and between CommVault Systems, Inc. and certain holders
    of Series A, B, C, D and E preferred stock</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.14</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Purchase Agreement, dated April&nbsp;14, 2000, by and between
    Microsoft Corporation, certain investors and CommVault Systems,
    Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.15</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Purchase Agreement, dated November&nbsp;10, 2000, by and between
    EMC Investment Corporation, certain investors and CommVault
    Systems, Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.16</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Series&nbsp;CC Purchase Agreement, dated as of February&nbsp;14,
    2002, by and between funds and accounts managed by affiliates of
    Putnam Investments, LLC, certain investors and CommVault
    Systems, Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.17</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Series&nbsp;CC Purchase Agreement, dated as of September&nbsp;2,
    2003, by and between certain investors and CommVault Systems,
    Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.18&#134;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Software License Agreement, dated December&nbsp;17, 2003, by and
    between Dell Products L.P. and CommVault Systems, Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.19&#134;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Addendum One to the License and Distribution Agreement, dated
    May&nbsp;5, 2004, by and between Dell Products L.P. and
    CommVault Systems, Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.20&#134;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Addendum Two to the License and Distribution Agreement, dated
    November 22, 2004, by and between Dell Products L.P. and
    CommVault Systems, Inc.</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10.0pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="3" align="center" nowrap><B>No.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Description</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.21&#134;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Addendum Three to the License and Distribution Agreement, dated
    April 28, 2005, by and between Dell Products L.P. and CommVault
    Systems, Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.22&#134;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Addendum Five to the License and Distribution Agreement, dated
    June&nbsp;6, 2006, by and between Dell Products L.P. and
    CommVault Systems, Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.23&#134;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    CommVault Systems Reseller Agreement, effective as of
    April&nbsp;6, 2005, between CommVault Systems and Dell Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.24</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Letter Agreement, dated February&nbsp;8, 2002, between the
    holders of Series A through E Preferred Stock and CommVault
    Systems, Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.25</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Stockholders Agreement, dated as of May&nbsp;22, 1996, among DLJ
    Merchant Banking Partners, L.P., DLJ International Partners,
    C.V., DLJ Offshore Partners, C.V., DLJ Merchant Banking Funding,
    Inc., DLJ Capital Corporation, Sprout Growth II, L.P., Sprout
    Capital VII, L.P., Sprout CEO Fund L.P., David H. Ireland,
    Scotty R. Neal, Robert Freiburghouse and CommVault Systems, Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.26</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amendment to the Stockholders Agreement, dated July&nbsp;23,
    1998, among DLJ Merchant Banking Partners, L.P., DLJ
    International Partners C.V., DLJ Offshore Partners, C.V., DLJ
    Merchant Banking Funding, Inc., DLJ Capital Corporation, Sprout
    Growth II, L.P., Sprout Capital VII, L.P., Sprout CEO Fund L.P.,
    David H. Ireland, Scotty R. Neal, Robert Freiburghouse and
    CommVault Systems, Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.27</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Second Amendment to the Stockholders Agreement, dated
    November&nbsp;6, 2000, among DLJ Merchant Banking Partners,
    L.P., DLJ International Partners, C.V., DLJ Offshore Partners,
    C.V., DLJ Merchant Banking Funding, Inc., DLJ Capital
    Corporation, Sprout Growth II, L.P., Sprout Capital VII, L.P.,
    Sprout CEO Fund L.P., David H. Ireland, Scotty R. Neal, Robert
    Freiburghouse and CommVault Systems, Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.28</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Third Amendment to the Stockholders Agreement, dated
    February&nbsp;14, 2002, among DLJ Merchant Banking Partners,
    L.P., DLJ International Partners, C.V., DLJ Offshore Partners,
    C.V., DLJ Merchant Banking Funding, Inc., DLJ Capital
    Corporation, Sprout Growth II, L.P., Sprout Capital VII, L.P.,
    Sprout CEO Fund L.P., David H. Ireland, Scotty R. Neal, Robert
    Freiburghouse and CommVault Systems, Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.29</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Fourth Amendment to the Stockholders Agreement, dated
    September&nbsp;2, 2003, among DLJ Merchant Banking Partners,
    L.P., DLJ International Partners, C.V., DLJ Offshore Partners,
    C.V., DLJ Merchant Banking Funding, Inc., DLJ Capital
    Corporation, Sprout Growth II, L.P., Sprout Capital VII, L.P.,
    Sprout CEO Fund L.P. , David H. Ireland, Scotty R. Neal, Robert
    Freiburghouse and CommVault Systems, Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.30</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Fifth Amendment to the Stockholders Agreement, dated
    May&nbsp;22, 2006, by and among DLJ Merchant Banking Partners,
    L.P., DLJ International Partners, C.V., DLJ Offshore Partners,
    C.V., DLJ Merchant Banking Funding, Inc., DLJ Capital
    Corporation, DLJ First ESC, L.P., DLJ ESC II, L.P., Sprout
    Growth II, L.P., Sprout Capital VII, L.P., Sprout Capital IX,
    L.P., Sprout Entrepreneurs&#146; Fund, L.P., Sprout IX Plan
    Investors, L.P., Sprout CEO Fund L.P., Thomas J. Barry, Larry
    Cormier, Randy Fodero, Robert Freiburghouse, Bob Gailus, N.
    Robert Hammer, David H. Ireland, Lou Miceli, Tom Miller, Scotty
    R. Neal and CommVault Systems, Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>21</TD>
    <TD align="left" valign="top" nowrap>.1**</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    List of Subsidiaries of CommVault Systems, Inc.</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent of Ernst&nbsp;&#38; Young LLP</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD align="left" valign="top" nowrap>.2*</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent of Mayer, Brown, Rowe&nbsp;&#38; Maw LLP (included in
    Exhibit&nbsp;5.1)</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>24</TD>
    <TD align="left" valign="top" nowrap>.1**</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Powers of Attorney (included on the signature page to the
    original registration statement)</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 3.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>*</TD>
    <TD align="left">
    To be filed by amendment.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10.0pt;color: #000000; background: #ffffff;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>**&nbsp;</TD>
    <TD align="left">
    Previously filed.</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&#134;&nbsp;</TD>
    <TD align="left">
    Confidential treatment has been requested for portions of this
    document. Omitted portions have been filed separately with the
    SEC.</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>y17249a2exv10w1.txt
<DESCRIPTION>EX-10.1: LOAN AND SECURITY AGREEMENT
<TEXT>
<PAGE>

                                                                    EXHIBIT 10.1

                           LOAN AND SECURITY AGREEMENT

     THIS LOAN AND SECURITY AGREEMENT (this "AGREEMENT") dated as of the
Effective Date between SILICON VALLEY BANK, a California corporation ("BANK"),
and COMMVAULT SYSTEMS, INC., a Delaware corporation ("BORROWER"), provides the
terms on which Bank shall lend to Borrower and Borrower shall repay Bank. The
parties agree as follows:

     1.   ACCOUNTING AND OTHER TERMS

     Accounting terms not defined in this Agreement shall be construed following
GAAP. Calculations and determinations must be made following GAAP. Capitalized
terms not otherwise defined in this Agreement shall have the meanings set forth
in Section 13. All other terms contained in this Agreement, unless otherwise
indicated, shall have the meaning provided by the Code to the extent such terms
are defined therein.

     2.   LOAN AND TERMS OF PAYMENT

     2.1 PROMISE TO PAY. Borrower hereby unconditionally promises to pay Bank
the outstanding principal amount of all Credit Extensions and accrued and unpaid
interest thereon as and when due in accordance with this Agreement.

     2.1.1 TERM LOAN.

          (a) Availability. Bank shall make one (1) term loan available on or
after the Effective Date but no later than the earlier of (i) five (5) Business
Days following Borrower closing on an initial public offering or (ii) July 31,
2006 to Borrower in an amount up to the Term Loan Amount, subject to the
satisfaction of the terms and conditions of this Agreement.

          (b) Repayment. Commencing on June 1, 2006 and on the first (1st) day
of each quarter thereafter, Borrower shall repay the Term Loan in (i) equal
installments of principal, which would fully amortize the Term Loan over a
twenty-four (24) month period, plus (ii) accrued interest ((i) and (ii)
collectively, the "TERM LOAN PAYMENT"). Borrower's final Term Loan Payment, due
on the Term Loan Maturity Date, shall include all outstanding principal and
accrued and unpaid interest under the Term Loan.

     2.2 GENERAL PROVISIONS RELATING TO THE CREDIT EXTENSION. Borrower shall pay
interest accrued on the Credit Extension at the rates and in the manner set
forth in Section 2.3(b).

     2.3 PAYMENT OF INTEREST ON THE CREDIT EXTENSION.

          (a) Computation of Interest. Interest on the Credit Extension and all
fees payable hereunder shall be computed on the basis of a 360-day year and the
actual number of days elapsed in the period during which such interest accrues.
In computing interest on any Credit Extension, the date of the making of such
Credit Extension shall be included and the date

<PAGE>

of payment shall be excluded; provided, however, that if any Credit Extension is
repaid on the same day on which it is made, such day shall be included in
computing interest on such Credit Extension.

          (b) The Term Loan. The Term Loan shall bear interest on the
outstanding principal amount thereof from the date when made, continued or
converted until paid in full at a rate per annum equal to the LIBOR Rate plus
the LIBOR Rate Margin.

          (c) Default Interest. Except as otherwise provided in Section 2.3(b),
after an Event of Default or after acceleration of the Obligations, Obligations
shall bear interest at a rate per annum which is five percent (5.00%) above the
rate effective immediately before the Event of Default (the "DEFAULT RATE").
Payment or acceptance of the increased interest provided in this Section is not
a permitted alternative to timely payment and shall not constitute a waiver of
any Event of Default or otherwise prejudice or limit any rights or remedies of
Bank.

          (d) Debit of Accounts. Bank may debit any of Borrower's deposit
accounts, including the Designated Deposit Account, for principal and interest
payments when due, or any other amounts Borrower owes Bank, when due. Bank shall
promptly notify Borrower after it debits Borrower's accounts. These debits shall
not constitute a set-off.

     2.4 FEES. Borrower shall pay to Bank all Bank Expenses (including
reasonable attorneys' fees and expenses, plus expenses for documentation and
negotiation of this Agreement) incurred through and after the Effective Date,
immediately upon receipt of an invoice therefore.

     3. CONDITIONS OF LOANS

     3.1 CONDITIONS PRECEDENT TO CREDIT EXTENSION. Bank's obligation to make the
Credit Extension is subject to the condition precedent that Bank shall have
received, in form and substance satisfactory to Bank, such documents, and
completion of such other matters, as Bank may reasonably deem necessary or
appropriate, including, without limitation:

          (a) Borrower shall have delivered duly executed original signatures to
the Loan Documents to which it is a party;

          (b) Borrower shall have delivered duly executed original signatures to
the Control Agreement;

          (c) Borrower shall have delivered its Operating Documents and a good
standing certificate of Borrower certified by the Secretary of State of the
State of Delaware and the Secretary of State of the State of New Jersey as of a
date no earlier than thirty (30) days prior to the Effective Date;

          (d) Borrower shall have delivered duly executed original signatures to
the completed Borrowing Resolutions for Borrower;

          (e) Bank shall have received certified copies, dated as of a recent
date, of financing statement searches, as Bank shall request, accompanied by
written evidence (including


                                        2

<PAGE>

any UCC termination statements) that the Liens indicated in any such financing
statements either constitute Permitted Liens or have been or, in connection with
the Credit Extension, will be terminated or released;

          (f) Borrower shall have delivered the Perfection Certificate executed
by Borrower;

          (g) Borrower shall have delivered the insurance policies and/or
endorsements required pursuant to Section 6.4 hereof evidence satisfactory to
Bank that the insurance policies required by Section 6.4 hereof are in full
force and effect, together with appropriate evidence showing loss payable and/or
additional insured clauses or endorsements in favor of Bank; and

          (h) Borrower shall have paid the fees and Bank Expenses specified in
Section 2.4 hereof.

     3.2 PROCEDURE FOR THE BORROWING OF CREDIT EXTENSIONS.

     Subject to the prior satisfaction of all other applicable conditions to the
making of the Term Loan set forth in this Agreement, the Term Loan shall be made
upon Borrower's irrevocable written notice delivered to Bank in the form of a
Notice of Borrowing, executed by a Responsible Officer of Borrower or his or her
designee. Bank may rely on any telephone notice given by a person whom Bank
believes is a Responsible Officer or designee. Borrower will indemnify Bank for
any loss Bank suffers due to such reliance. Such Notice of Borrowing must be
received by Bank prior to 11:00 a.m. Pacific time, at least three (3) Business
Days prior to the Funding Date specifying the requested Funding Date.

     The proceeds of the Term Loan will then be made available to Borrower on
the Funding Date by Bank by transfer to the Designated Deposit Account and,
subsequently, by wire transfer to such other account as Borrower may instruct in
the Notice of Borrowing. No Credit Extensions shall be deemed made to Borrower,
and no interest shall accrue on the Term Loan, until the related funds have been
deposited in the Designated Deposit Account.

     3.3 SPECIAL PROVISIONS GOVERNING THE TERM LOAN.

     Notwithstanding any other provision of this Agreement to the contrary, the
following provisions shall govern with respect to the Term Loan as to the
matters covered:

          (a) Determination of Applicable Interest Rate. As soon as practicable
on each Interest Rate Determination Date, Bank shall determine (which
determination shall, absent manifest error in calculation, be final, conclusive
and binding upon all parties) the interest rate that shall apply to the Term
Loan and shall promptly give notice thereof (in writing or by telephone
confirmed in writing) to Borrower.

          (b) Inability to Determine Applicable Interest Rate. In the event that
Bank shall have determined (which determination shall be final and conclusive
and binding upon all parties hereto) on any Interest Rate Determination Date
with respect to the Term Loan, that by reason of circumstances affecting the
London interbank market adequate and fair means do not


                                        3

<PAGE>

exist for ascertaining the interest rate applicable to the Term Loan on the
basis provided for in the definition of LIBOR, Bank shall on such date give
notice (by facsimile or by telephone confirmed in writing) to Borrower of such
determination, whereupon the Term Loan shall bear interest on the outstanding
principal amount thereof at the Alternate Rate until such time as Bank
determines that such circumstances cease to exist.

          (c) Compensation for Breakage or Non-Commencement of Interest Periods.
Borrower shall compensate Bank, upon written request by Bank (which request
shall set forth the manner and method of computing such compensation), for all
reasonable losses, expenses and liabilities, if any (including any interest paid
by Bank to lenders of funds borrowed by it to make or carry its Term Loan and
any loss, expense or liability incurred by Bank in connection with the
liquidation or re-employment of such funds), that Bank may incur: (i) if for any
reason (other than a default by Bank or due to any failure of Bank to fund a
Term Loan due to impracticability or illegality under Sections 3.4(d) and
3.4(e)) a borrowing does not occur on a date specified in a Notice of Borrowing,
or (ii) if any principal payment of any of its Term Loan occurs on a date prior
to the last day of an Interest Period.

          (d) Assumptions Concerning Funding of the Term Loan. Calculation of
all amounts payable to Bank under this Section and under Section 3.4 shall be
made as though Bank had actually funded the Term Loan through the purchase of a
Eurodollar deposit bearing interest at LIBOR in an amount equal to the amount of
such Term Loan and having a maturity comparable to the relevant Interest Period;
provided, however, that Bank may fund the Term Loan in any manner it sees fit
and the foregoing assumptions shall be utilized only for the purposes of
calculating amounts payable under this Section and under Section 3.4.

     3.4 ADDITIONAL REQUIREMENTS/PROVISIONS REGARDING THE TERM LOAN.

          (a) If for any reason (including voluntary or mandatory prepayment or
acceleration), Bank receives all or part of the principal amount of the Term
Loan prior to the last day of the Interest Period, Borrower shall immediately
notify Borrower's account officer at Bank and, on demand by Bank, pay Bank the
amount (if any) by which (i) the additional interest which would have been
payable on the amount so received had it not been received until the last day of
such Interest Period exceeds (ii) the interest which would have been recoverable
by Bank by placing the amount so received on deposit in the certificate of
deposit markets, the offshore currency markets, or United States Treasury
investment products, as the case may be, for a period starting on the date on
which it was so received and ending on the last day of such Interest Period at
the interest rate determined by Bank in its reasonable discretion. Bank's
determination as to such amount shall be conclusive absent manifest error.

          (b) Borrower shall pay Bank, upon demand by Bank, from time to time
such amounts as Bank may determine to be necessary to compensate it for any
costs incurred by Bank that Bank determines are attributable to its making or
maintaining of any amount receivable by Bank hereunder in respect of any Credit
Extensions relating thereto (such increases in costs and reductions in amounts
receivable being herein called "ADDITIONAL COSTS"), in each case resulting from
any Regulatory Change which:


                                        4

<PAGE>

               (i) changes the basis of taxation of any amounts payable to Bank
under this Agreement in respect of any Credit Extensions (other than changes
which affect taxes measured by or imposed on the overall net income of Bank by
the jurisdiction in which Bank has its principal office);

               (ii) imposes or modifies any reserve, special deposit or similar
requirements relating to any extensions of credit or other assets of, or any
deposits with, or other liabilities of Bank (including any Credit Extensions or
any deposits referred to in the definition of LIBOR); or

               (iii) imposes any other condition affecting this Agreement (or
any of such extensions of credit or liabilities).

     Bank will notify Borrower of any event occurring after the Effective Date
which will entitle Bank to compensation pursuant to this Section 3.4 as promptly
as practicable after it obtains knowledge thereof and determines to request such
compensation. Bank will furnish Borrower with a statement setting forth the
basis and amount of each request by Bank for compensation under this Section
3.4. Determinations and allocations by Bank for purposes of this Section 3.4 of
the effect of any Regulatory Change on its costs of maintaining its obligations
to make Credit Extensions, of making or maintaining Credit Extensions, or on
amounts receivable by it in respect of Credit Extensions, and of the additional
amounts required to compensate Bank in respect of any Additional Costs, shall be
conclusive absent manifest error.

          (c) If Bank shall determine that the adoption or implementation of any
applicable law, rule, regulation, or treaty regarding capital adequacy, or any
change therein, or any change in the interpretation or administration thereof by
any governmental authority, central bank, or comparable agency charged with the
interpretation or administration thereof, or compliance by Bank (or its
applicable lending office) with any request or directive regarding capital
adequacy (whether or not having the force of law) of any such authority, central
bank, or comparable agency, has or would have the effect of reducing the rate of
return on capital of Bank or any Person controlling Bank (a "PARENT") as a
consequence of its obligations hereunder to a level below that which Bank (or
its Parent) could have achieved but for such adoption, change, or compliance
(taking into consideration policies with respect to capital adequacy) by an
amount deemed by Bank to be material, then from time to time, within fifteen
(15) days after demand by Bank, Borrower shall pay to Bank such additional
amount or amounts as will compensate Bank for such reduction. A statement of
Bank claiming compensation under this Section 3.4(c) and setting forth the
additional amount or amounts to be paid to it hereunder shall be conclusive
absent manifest error.

          (d) If, at any time, Bank, in its sole and absolute discretion,
determines that (i) the amount of the Term Loan for periods equal to the
corresponding Interest Periods are not available to Bank in the offshore
currency interbank markets, or (ii) LIBOR does not accurately reflect the cost
to Bank of lending the Term Loan, then Bank shall promptly give notice thereof
to Borrower. Upon the giving of such notice, the Term Loan shall bear interest
at the Alternate Rate until Bank determines that such circumstances have ceased
to exist.


                                        5

<PAGE>

          (e) If it shall become unlawful for Bank to maintain the Term Loan, or
to perform its obligations hereunder, upon demand by Bank, Borrower shall prepay
the Credit Extensions in full with accrued interest thereon and all other
amounts payable by Borrower hereunder (including, without limitation, any amount
payable in connection with such prepayment pursuant to Section 3.4(a)).

     4. CREATION OF SECURITY INTEREST

     4.1 GRANT OF SECURITY INTEREST. Borrower hereby grants Bank, to secure the
payment and performance in full of all of the Obligations, a continuing security
interest in, and pledges to Bank, the Collateral, wherever located, whether now
owned or hereafter acquired or arising, and all proceeds and products thereof.
Borrower represents, warrants, and covenants that the security interest granted
herein is and shall at all times continue to be a first priority perfected
security interest in the Collateral (subject only to Permitted Liens that may
have superior priority to Bank's Lien under this Agreement). If Borrower shall
acquire a commercial tort claim, Borrower shall promptly notify Bank in a
writing signed by Borrower of the general details thereof and grant to Bank in
such writing a security interest therein and in the proceeds thereof, all upon
the terms of this Agreement, with such writing to be in form and substance
reasonably satisfactory to Bank.

     If this Agreement is terminated, Bank's Lien in the Collateral shall
continue until the Obligations (other than inchoate indemnity obligations) are
repaid in full in cash. Upon payment in full in cash of the Obligations and at
such time as Bank's obligation to make Credit Extensions has terminated, Bank
shall, at Borrower's sole cost and expense, release its Liens in the Collateral
and all rights therein shall revert to Borrower.

     4.2 AUTHORIZATION TO FILE FINANCING STATEMENTS. Borrower hereby authorizes
Bank to file financing statements, without notice to Borrower, with all
appropriate jurisdictions to perfect or protect Bank's interest or rights
hereunder, including a notice that any disposition of the Collateral, by either
Borrower or any other Person, shall be deemed to violate the rights of Bank
under the Code.

     5. REPRESENTATIONS AND WARRANTIES

     Borrower represents and warrants as follows:

     5.1 DUE ORGANIZATION AND AUTHORIZATION. Borrower and each of its
Subsidiaries are duly existing and in good standing as Registered Organizations
only in the State of Delaware and are qualified and licensed to do business and
are in good standing in any jurisdiction in which the conduct of their business
or their ownership of property requires that they be qualified except where the
failure to do so could not reasonably be expected to have a material adverse
effect on Borrower's business. In connection with this Agreement, Borrower has
delivered to Bank a completed certificate substantially in the form attached
hereto as Exhibit E signed by Borrower, entitled "Perfection Certificate."
Borrower represents and warrants to Bank that (a) Borrower's exact legal name is
that indicated on the Perfection Certificate and on the signature page hereof;
(b) Borrower is an organization of the type and is organized in the jurisdiction
set forth in the Perfection Certificate; (c) the Perfection Certificate
accurately sets forth Borrower's


                                        6

<PAGE>

organizational identification number or accurately states that Borrower has
none; (d) the Perfection Certificate accurately sets forth Borrower's place of
business, or, if more than one, its chief executive office as well as Borrower's
mailing address (if different than its chief executive office); (e) Borrower
(and each of its predecessors) has not, in the past five (5) years, changed its
state of formation, organizational structure or type, or any organizational
number assigned by its jurisdiction; and (f) all other information set forth on
the Perfection Certificate pertaining to Borrower and each of its Subsidiaries
is accurate and complete. If Borrower is not now a Registered Organization but
later becomes one, Borrower shall promptly notify Bank of such occurrence and
provide Bank with Borrower's organizational identification number.

     The execution, delivery and performance of the Loan Documents have been
duly authorized, and do not conflict with Borrower's organizational documents,
nor constitute an event of default under any material agreement by which
Borrower is bound. Borrower is not in default under any agreement to which it is
a party or by which it is bound in which the default could have a material
adverse effect on Borrower's business.

     5.2 COLLATERAL. Borrower has good title to, has rights in, and the power to
transfer each item of the Collateral upon which it purports to grant a Lien
hereunder, free and clear of any and all Liens except Permitted Liens. Borrower
has no deposit accounts other than (a) deposit accounts with Bank, (b) deposit
accounts, if any, described in the Perfection Certificate delivered to Bank in
connection herewith, and (c) deposit accounts with respect to which Borrower has
given Bank notice and to the extent required under this Agreement, taken such
actions as are necessary to give Bank a perfected security interest therein.

     The Collateral is not in the possession of any third party bailee (such as
a warehouse) except as otherwise provided in the Perfection Certificate. None of
the components of the Collateral shall be maintained at locations other than as
provided in the Perfection Certificate or as Borrower has given Bank notice
pursuant to Section 7.2. In the event that Borrower, after the date hereof,
intends to store or otherwise deliver any portion of the Collateral to a bailee,
then Borrower will first receive the written consent of Bank and such bailee
must execute and deliver a bailee agreement in form and substance satisfactory
to Bank in its sole discretion.

     Borrower is the sole owner of its intellectual property, except for
non-exclusive licenses granted to its customers in the ordinary course of
business. Each patent is valid and enforceable, and no part of the intellectual
property has been judged invalid or unenforceable, in whole or in part, and to
the best of Borrower's knowledge, no claim has been made that any part of the
intellectual property violates the rights of any third party except to the
extent such claim could not reasonably be expected to have a material adverse
effect on Borrower's business. Except as noted on the Perfection Certificate,
Borrower is not a party to, or bound by, any material license or other agreement
with respect to which Borrower is the licensee that prohibits or otherwise
restricts Borrower from granting a security interest in Borrower's interest in
such license or agreement or any other property. Borrower shall provide written
notice to Bank within ten (10) days of entering or becoming bound by any such
license or agreement which is reasonably likely to have a material impact on
Borrower's business or financial condition (other than over-the-counter software
that is commercially available to the public). Borrower shall take such steps as
Bank requests to obtain the consent of, or waiver by, any Person whose consent
or waiver is necessary for all such licenses or contract rights to be deemed
"Collateral" and for Bank to have


                                        7

<PAGE>

a security interest in it that might otherwise be restricted or prohibited by
law or by the terms of any such license or agreement (such consent or
authorization may include a licensor's agreement to a contingent assignment of
the license to Bank if Bank determines that is necessary in its good faith
judgment), whether now existing or entered into in the future.

     5.3 LITIGATION. There are no actions or proceedings pending or, to the
knowledge of the Responsible Officers, threatened in writing by or against
Borrower or any of its Subsidiaries involving more than Two Hundred Fifty
Thousand Dollars ($250,000).

     5.4 NO MATERIAL DEVIATION IN FINANCIAL STATEMENTS. All consolidated
financial statements for Borrower and any of its Subsidiaries delivered to Bank
fairly present in all material respects Borrower's consolidated financial
condition and Borrower's consolidated results of operations as of the dates
thereof. There has not been any material deterioration in Borrower's
consolidated financial condition since the date of the most recent financial
statements submitted to Bank.

     5.5 SOLVENCY. Borrower is not left with unreasonably small capital after
the transactions contemplated by this Agreement; and Borrower is able to pay its
debts (including trade debts) as they mature.

     5.6 REGULATORY COMPLIANCE. Borrower is not an "investment company" or a
company "controlled" by an "investment company" under the Investment Company
Act. Borrower is not engaged as one of its important activities in extending
credit for margin stock (under Regulations T and U of the Federal Reserve Board
of Governors). Borrower has complied in all material respects with the Federal
Fair Labor Standards Act. Borrower has not violated any laws, ordinances or
rules, the violation of which could reasonably be expected to have a material
adverse effect on its business. None of Borrower's or any of its Subsidiaries'
properties or assets has been used by Borrower or any Subsidiary or, to the best
of Borrower's knowledge, by previous Persons, in disposing, producing, storing,
treating, or transporting any hazardous substance other than legally. Borrower
and each of its Subsidiaries have obtained all consents, approvals and
authorizations of, made all declarations or filings with, and given all notices
to, all government authorities that are necessary to continue its business as
currently conducted.

     5.7 SUBSIDIARIES; INVESTMENTS. Borrower does not own any stock, partnership
interest or other equity securities except for Permitted Investments.

     5.8 TAX RETURNS AND PAYMENTS; PENSION CONTRIBUTIONS. Borrower has timely
filed all required tax returns and reports, and Borrower has timely paid all
foreign, federal, state and local taxes, assessments, deposits and contributions
owed by Borrower. Borrower may defer payment of any contested taxes, provided
that Borrower (a) in good faith contests its obligation to pay the taxes by
appropriate proceedings promptly and diligently instituted and conducted, (b)
notifies Bank in writing of the commencement of, and any material development
in, the proceedings, and (c) posts bonds or takes any other steps required to
prevent the governmental authority levying such contested taxes from obtaining a
Lien upon any of the Collateral that is other than a "Permitted Lien." Borrower
is unaware of any claims or adjustments proposed for any of Borrower's prior tax
years which could result in additional taxes becoming due and


                                        8

<PAGE>

payable by Borrower. Borrower has paid all amounts necessary to fund all present
pension, profit sharing and deferred compensation plans in accordance with their
terms, and Borrower has not withdrawn from participation in, and has not
permitted partial or complete termination of, or permitted the occurrence of any
other event with respect to, any such plan which could reasonably be expected to
result in any liability of Borrower, including any liability to the Pension
Benefit Guaranty Corporation or its successors or any other governmental agency.

     5.9 USE OF PROCEEDS. Borrower shall use the proceeds of the Credit
Extensions solely to finance a dividend to Borrower's preferred shareholders and
to fund its general business requirements and not for personal, family,
household or agricultural purposes.

     5.10 FULL DISCLOSURE. No written representation, warranty or other
statement of Borrower in any certificate or written statement given to Bank, as
of the date such representations, warranties, or other statements were made,
taken together with all such written certificates and written statements given
to Bank, contains any untrue statement of a material fact or omits to state a
material fact necessary to make the statements contained in the certificates or
statements not misleading (it being recognized by Bank that the projections and
forecasts provided by Borrower in good faith and based upon reasonable
assumptions are not viewed as facts and that actual results during the period or
periods covered by such projections and forecasts may differ from the projected
or forecasted results).

     6. AFFIRMATIVE COVENANTS

     Borrower shall do all of the following:

     6.1 GOVERNMENT COMPLIANCE. Maintain its and all its Subsidiaries' legal
existence and good standing in their respective jurisdictions of formation and
maintain qualification in each jurisdiction in which the failure to so qualify
would reasonably be expected to have a material adverse effect on Borrower's
business or operations. Borrower shall comply, and have each Subsidiary comply,
with all laws, ordinances and regulations to which it is subject, noncompliance
with which could have a material adverse effect on Borrower's business.

     6.2 FINANCIAL STATEMENTS, REPORTS, CERTIFICATES.

          (a) DELIVER TO BANK: (i) so long as Borrower is not subject to the
reporting requirements under the Securities Exchange Act of 1934, as amended
(the "ACT"), as soon as available, but no later than thirty (30) days after the
last day of each month, a company prepared consolidated balance sheet and income
statement covering Borrower's and each of its Subsidiary's operations during the
period certified by a Responsible Officer and in a form acceptable to Bank; (ii)
so long as Borrower is not subject to the reporting requirements under the Act,
as soon as available, but no later than one hundred twenty (120) days after the
last day of Borrower's fiscal year, audited consolidated financial statements
prepared under GAAP, consistently applied, together with an unqualified opinion
on the financial statements from an independent certified public accounting firm
acceptable to Bank in its reasonable discretion; (iii) within five (5) days of
delivery, copies of all statements, reports and notices made available to
Borrower's security holders or to any holders of Subordinated Debt; (iv) in the
event that Borrower becomes subject to the reporting requirements under the Act,
within forty-five (45)


                                        9

<PAGE>

days of filing, all reports on Form 10-Q and 8-K filed with the Securities and
Exchange Commission or a link thereto on Borrower's or another website on the
Internet; (v) in the event that Borrower becomes subject to the reporting
requirements under the Act, as amended, within one hundred twenty (120) days of
Borrower's fiscal year end, all reports on Form 10-K filed with the Securities
and Exchange Commission or a link thereto on Borrower's or another website on
the Internet; (vi) a prompt report of any legal actions pending or threatened
against Borrower or any of its Subsidiaries that could result in damages or
costs to Borrower or any of its Subsidiaries of Fifty Thousand Dollars ($50,000)
or more; (vii) prompt notice of an event that materially and adversely affects
the value of the intellectual property; (viii) as soon as available, but no
later than thirty (30) days after approval by Borrower's board of directors,
copies of all annual financial projections, commensurate in form, substance and
timing with those provided by Borrower to its venture capital and other
investors and (ix) budgets, sales projections, operating plans and other
financial information reasonably requested by Bank.

          (b) Within (i) thirty (30) days after the last day of each month so
long as Borrower is not subject to the reporting requirements under the Act or
(ii) at all times that Borrower is subject to the reporting requirements of the
Act, Borrower shall deliver to Bank within forty-five (45) days after the last
day of each quarter, a duly completed Compliance Certificate signed by a
Responsible Officer setting forth calculations showing compliance with the
financial covenant set forth in this Agreement and as soon as available, but in
no event more than seven (7) days after each month end, a cash balance report in
form and detail satisfactory to Bank in all respects

          (c) Allow Bank to audit Borrower's Collateral at Borrower's expense.

     6.3 TAXES; PENSIONS. Make, and cause each of its Subsidiaries to make,
timely payment of all foreign, federal, state, and local taxes or assessments
(other than taxes and assessments which Borrower is contesting pursuant to the
terms of Section 5.8 hereof) and shall deliver to Bank, on demand, appropriate
certificates attesting to such payments, and pay all amounts necessary to fund
all present pension, profit sharing and deferred compensation plans in
accordance with their terms.

     6.4 INSURANCE. Keep its business and the Collateral insured for risks and
in amounts standard for companies in Borrower's industry and location and as
Bank may reasonably request. Insurance policies shall be in a form, with
companies, and in amounts that are satisfactory to Bank. All property policies
shall have a lender's loss payable endorsement showing Bank as the sole loss
payee and waive subrogation against Bank, and all liability policies shall show,
or have endorsements showing, Bank as an additional insured. All policies (or
the loss payable and additional insured endorsements) shall provide that the
insurer must give Bank at least twenty (20) days notice before canceling,
amending, or declining to renew its policy. At Bank's request, Borrower shall
deliver certified copies of policies and evidence of all premium payments.
Proceeds payable under any policy shall, at Bank's option, be payable to Bank on
account of the Obligations. Notwithstanding the foregoing, (a) so long as no
Event of Default has occurred and is continuing, Borrower shall have the option
of applying the proceeds of any casualty insurance policy up to Two Hundred
Fifty Thousand Dollars ($250,000), in the aggregate, toward the replacement or
repair of destroyed or damaged property; provided that any such replaced or
repaired property (i) shall be of equal or like value as the replaced or
repaired Collateral and (ii)


                                       10

<PAGE>

shall be deemed Collateral in which Bank has been granted a first priority
security interest, and (b) after the occurrence and during the continuance of an
Event of Default, all proceeds payable under such casualty policy shall, at the
option of Bank, be payable to Bank on account of the Obligations. If Borrower
fails to obtain insurance as required under this Section 6.4 or to pay any
amount or furnish any required proof of payment to third Persons and Bank, Bank
may make all or part of such payment or obtain such insurance policies required
in this Section 6.4, and take any action under the policies Bank deems prudent.

     6.5 OPERATING ACCOUNTS.

          (a) Maintain its primary operating accounts with Bank.

          (b) Provide Bank not less than five (5) days prior written notice
before establishing any Collateral Account at or with any bank or financial
institution other than Bank or its Affiliates. In addition, for each Collateral
Account that Borrower at any time maintains, Borrower shall cause the applicable
bank or financial institution (other than Bank) at or with which any Collateral
Account is maintained to execute and deliver a Control Agreement or other
appropriate instrument with respect to such Collateral Account to perfect Bank's
Lien in such Collateral Account in accordance with the terms hereof; provided,
however that no Control Agreement is required for any deposit account with an
amount on deposit the does not at any time exceed Two Hundred Fifty Thousand
Dollars ($250,000), so long as the aggregate amounts in such deposit accounts do
not exceed One Million Dollars ($1,000,000). The provisions of the previous
sentence which require a Control Agreement, shall not apply to deposit accounts
exclusively used for payroll, payroll taxes and other employee wage and benefit
payments to or for the benefit of Borrower's employees and identified to Bank by
Borrower as such.

     6.6 FINANCIAL COVENANTS. Borrower shall maintain, at all times, to be
tested as of the last day of each month, unless otherwise noted, on a
consolidated basis with respect to Borrower and its Subsidiaries a ratio of
Quick Assets to Current Liabilities minus Deferred Revenue of at least 1.5 to
1.0 (the "ADJUSTED QUICK RATIO").

     6.7 PROTECTION AND REGISTRATION OF INTELLECTUAL PROPERTY RIGHTS. Borrower
shall:

          (a) protect, defend and maintain the validity and enforceability of
its intellectual property;

          (b) promptly advise Bank in writing of material infringements of its
intellectual property; and

          (c) not allow any intellectual property material to Borrower's
business to be abandoned, forfeited or dedicated to the public without Bank's
written consent. If Borrower decides to register any copyrights or mask works in
the United States Copyright Office, Borrower shall: (x) provide Bank with at
least fifteen (15) days prior written notice of its intent to register such
copyrights or mask works together with a copy of the application it intends to
file with the United States Copyright Office (excluding exhibits thereto); (y)
execute an intellectual property security agreement or such other documents as
Bank may reasonably request to maintain the perfection and priority of Bank's
security interest in the copyrights or mask works


                                       11

<PAGE>

intended to be registered with the United States Copyright Office; and (z)
record such intellectual property security agreement with the United States
Copyright Office contemporaneously with filing the copyright or mask work
application(s) with the United States Copyright Office. Borrower shall promptly
provide to Bank a copy of the application(s) filed with the United States
Copyright Office together with evidence of the recording of the intellectual
property security agreement necessary for Bank to maintain the perfection and
priority of its security interest in such copyrights or mask works. Borrower
shall provide written notice to Bank of any application filed by Borrower in the
United States Patent and Trademark Office for a patent or to register a
trademark or service mark within thirty (30) days after any such filing.

     6.8 LITIGATION COOPERATION. From the date hereof and continuing through the
termination of this Agreement, make available to Bank, without expense to Bank,
Borrower and its officers, employees and agents and Borrower's books and
records, to the extent that Bank may deem them reasonably necessary to prosecute
or defend any third-party suit or proceeding instituted by or against Bank with
respect to any Collateral or relating to Borrower.

     6.9 FURTHER ASSURANCES. Borrower shall execute any further instruments and
take further action as Bank reasonably requests to perfect or continue Bank's
Lien in the Collateral or to effect the purposes of this Agreement.

     7. NEGATIVE COVENANTS

     Borrower shall not do any of the following without Bank's prior written
     consent:

     7.1 DISPOSITIONS. Convey, sell, lease, transfer or otherwise dispose of
(collectively, "TRANSFER"), or permit any of its Subsidiaries to Transfer, all
or any part of its business or property, except for Transfers (a) of Inventory
in the ordinary course of business; (b) of worn-out or obsolete Equipment; and
(c) in connection with Permitted Liens and Permitted Investments.

     7.2 CHANGES IN BUSINESS OR BUSINESS LOCATIONS.

          (a) Engage in or permit any of its Subsidiaries to engage in any
business other than the businesses currently engaged in by Borrower and such
Subsidiary, as applicable, or reasonably related thereto; or (b) liquidate or
dissolve. Borrower shall not, without at least thirty (30) days prior written
notice to Bank: (1) add any new offices or business locations, including
warehouses (unless such new offices or business locations contain less than One
Hundred Thousand Dollars ($100,000) in Borrower's assets or property), (2)
change its jurisdiction of organization, (3) change its organizational structure
or type, (4) change its legal name, or (5) change any organizational number (if
any) assigned by its jurisdiction of organization.

     7.3 MERGERS OR ACQUISITIONS. Merge or consolidate, or permit any of its
Subsidiaries to merge or consolidate, with any other Person, or acquire, or
permit any of its Subsidiaries to acquire, all or substantially all of the
capital stock or property of another Person. A Subsidiary may merge or
consolidate with or into another Subsidiary or into Borrower.


                                       12

<PAGE>

     7.4 INDEBTEDNESS. Create, incur, assume, or be liable for any Indebtedness,
or permit any Subsidiary to do so, other than Permitted Indebtedness.

     7.5 ENCUMBRANCE. Create, incur, or allow any Lien on any of its property,
or assign or convey any right to receive income, including the sale of any
Accounts, or permit any of its Subsidiaries to do so, except for Permitted
Liens, permit any Collateral not to be subject to the first priority security
interest granted herein, or enter into any agreement, document, instrument or
other arrangement (except with or in favor of Bank) with any Person which
directly or indirectly prohibits or has the effect of prohibiting Borrower or
any Subsidiary from assigning, mortgaging, pledging, granting a security
interest in or upon, or encumbering any of Borrower's or any Subsidiary's
intellectual property, except as is otherwise permitted in Section 7.1 hereof
and the definition of "Permitted Lien" herein.

     7.6 MAINTENANCE OF COLLATERAL ACCOUNTS. Maintain any Collateral Account
except pursuant to the terms of Section 6.5(b) hereof.

     7.7 INVESTMENTS; DISTRIBUTIONS.

          (a) Directly or indirectly make any Investment other than Permitted
Investments, or permit any of its Subsidiaries to do so; or (b) pay any
dividends or make any distribution or payment or redeem, retire or purchase any
capital stock provided that (i) Borrower may convert any of its convertible
securities into other securities pursuant to the terms of such convertible
securities or otherwise in exchange thereof, (ii) Borrower may pay dividends
solely in common stock, and (iii) Borrower may repurchase the stock of former
employees or consultants pursuant to stock repurchase agreements so long as an
Event of Default does not exist at the time of such repurchase and would not
exist after giving effect to such repurchase, provided such repurchase does not
exceed in the aggregate of Fifty Thousand Dollars ($50,000) per fiscal year.

     7.8 TRANSACTIONS WITH AFFILIATES. Directly or indirectly enter into or
permit to exist any material transaction with any Affiliate of Borrower, except
for transactions that are in the ordinary course of Borrower's business, upon
fair and reasonable terms that are no less favorable to Borrower than would be
obtained in an arm's length transaction with a non-affiliated Person.

     7.9 SUBORDINATED DEBT.

          (a) Make or permit any payment on any Subordinated Debt, except under
the terms of the subordination, intercreditor, or other similar agreement to
which such Subordinated Debt is subject, or

          (b) Amend any provision in any document relating to the Subordinated
Debt which would increase the amount thereof or adversely affect the
subordination thereof to Obligations owed to Bank.

     7.10 COMPLIANCE. Become an "investment company" or a company controlled by
an "investment company," under the Investment Company Act of 1940 or undertake
as one of its important activities extending credit to purchase or carry margin
stock (as defined in Regulation


                                       13

<PAGE>

U of the Board of Governors of the Federal Reserve System), or use the proceeds
of any Credit Extension for that purpose; fail to meet the minimum funding
requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as
defined in ERISA, to occur; fail or permit any Subsidiary to fail to comply with
the Federal Fair Labor Standards Act or violate any other law or regulation, if
the violation could reasonably be expected to have a material adverse effect on
Borrower's business; withdraw or permit any Subsidiary to withdraw from
participation in, permit partial or complete termination of, or permit the
occurrence of any other event with respect to, any present pension, profit
sharing and deferred compensation plan which could reasonably be expected to
result in any liability of Borrower, including any liability to the Pension
Benefit Guaranty Corporation or its successors or any other governmental agency.

     8. EVENTS OF DEFAULT

     Any one of the following shall constitute an event of default (an "EVENT OF
DEFAULT") under this Agreement:

     8.1 PAYMENT DEFAULT. Borrower fails to (a) make any payment of principal or
interest on any Credit Extension on its due date, or (b) pay any other
Obligations within three (3) Business Days after such Obligations are due and
payable. During the cure period, the failure to cure the payment default is not
an Event of Default (but no Credit Extension will be made during the cure
period);

     8.2 COVENANT DEFAULT.

          (a) Borrower fails or neglects to perform any obligation in Sections
6.2, 6.5, 6.5, 6.6 or violates any covenant in Section 7; or

          (b) Borrower fails or neglects to perform, keep, or observe any other
term, provision, condition, covenant or agreement contained in this Agreement,
any Loan Document, and as to any default (other than those specified in Section
8.8 below) under such other term, provision, condition, covenant or agreement
that can be cured, has failed to cure the default within ten (10) days after the
occurrence thereof; provided, however, that if the default cannot by its nature
be cured within the ten (10) day period or cannot after diligent attempts by
Borrower be cured within such ten (10) day period, and such default is likely to
be cured within a reasonable time, then Borrower shall have an additional period
(which shall not in any case exceed thirty (30) days) to attempt to cure such
default, and within such reasonable time period the failure to cure the default
shall not be deemed an Event of Default (but no Credit Extensions shall be made
during such cure period). Grace periods provided under this Section shall not
apply, among other things, to financial covenants or any other covenants set
forth in subsection (a) above;

     8.3 MATERIAL ADVERSE CHANGE. A Material Adverse Change occurs;


                                       14

<PAGE>

     8.4 ATTACHMENT. (a) Any material portion of Borrower's assets is attached,
seized, levied on, or comes into possession of a trustee or receiver and the
attachment, seizure or levy is not removed in ten (10) days; (b) the service of
process upon Bank seeking to attach, by trustee or similar process, any funds of
Borrower, or of any entity under control of Borrower (including a Subsidiary) on
deposit with Bank; (c) Borrower is enjoined, restrained, or prevented by court
order from conducting a material part of its business; (d) a judgment or other
claim in excess of Fifty Thousand Dollars ($50,000) becomes a Lien on any of
Borrower's assets; or (e) a notice of lien, levy, or assessment is filed against
any of Borrower's assets by any government agency and not paid within ten (10)
days after Borrower receives notice. These are not Events of Default if stayed
or if a bond is posted pending contest by Borrower (but no Credit Extensions
shall be made during the cure period);

     8.5 INSOLVENCY. (a) Borrower is unable to pay its debts (including trade
debts) as they become due or otherwise becomes insolvent; (b) Borrower begins an
Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower
and not dismissed or stayed within thirty (30) days (but no Credit Extensions
shall be made while of any of the conditions described in clause (a) exist
and/or until any Insolvency Proceeding is dismissed);

     8.6 OTHER AGREEMENTS. There is a default in any agreement to which Borrower
is a party with a third party or parties resulting in a right by such third
party or parties, whether or not exercised, to accelerate the maturity of any
Indebtedness in an amount in excess of Two Hundred Fifty Thousand Dollars
($250,000) or that could have a material adverse effect on Borrower's business;

     8.7 JUDGMENTS. A judgment or judgments for the payment of money in an
amount, individually or in the aggregate, of at least Two Hundred Fifty Thousand
Dollars ($250,000) (not covered by independent third-party insurance) shall be
rendered against Borrower and shall remain unsatisfied and unstayed for a period
of ten (10) days after the entry thereof (provided that no Credit Extensions
will be made prior to the satisfaction or stay of such judgment);

     8.8 MISREPRESENTATIONS. Borrower or any Person acting for Borrower makes
any representation, warranty, or other statement now or later in this Agreement,
in any other Loan Document or in any writing delivered to Bank or to induce Bank
to enter this Agreement or any Loan Document, and such representation, warranty,
or other statement is incorrect in any material respect when made; or

     8.9 SUBORDINATED DEBT. A default or breach occurs under any agreement
between Borrower and any creditor of Borrower that signed a subordination,
intercreditor, or other similar agreement with Bank, or any creditor that has
signed such an agreement with Bank breaches any terms of such agreement.

     9. BANK'S RIGHTS AND REMEDIES

     9.1 RIGHTS AND REMEDIES. While an Event of Default occurs and continues
Bank may, without notice or demand, do any or all of the following:


                                       15

<PAGE>

          (a) declare all Obligations immediately due and payable (but if an
Event of Default described in Section 8.5 occurs all Obligations are immediately
due and payable without any action by Bank);

          (b) stop advancing money or extending credit for Borrower's benefit
under this Agreement or under any other agreement between Borrower and Bank;

          (c) settle or adjust disputes and claims directly with Account Debtors
for amounts on terms and in any order that Bank considers advisable, notify any
Person owing Borrower money of Bank's security interest in such funds, and
verify the amount of such account;

          (d) make any payments and do any acts it considers necessary or
reasonable to protect the Collateral and/or its security interest in the
Collateral. Borrower shall assemble the Collateral if Bank requests and make it
available as Bank designates. Bank may enter premises where the Collateral is
located, take and maintain possession of any part of the Collateral, and pay,
purchase, contest, or compromise any Lien which appears to be prior or superior
to its security interest and pay all expenses incurred. Borrower grants Bank a
license to enter and occupy any of its premises, without charge, to exercise any
of Bank's rights or remedies;

          (e) apply to the Obligations any (i) balances and deposits of Borrower
it holds, or (ii) any amount held by Bank owing to or for the credit or the
account of Borrower;

          (f) ship, reclaim, recover, store, finish, maintain, repair, prepare
for sale, advertise for sale, and sell the Collateral. Bank is hereby granted a
non-exclusive, royalty-free license or other right to use, without charge,
Borrower's labels, patents, copyrights, mask works, rights of use of any name,
trade secrets, trade names, trademarks, service marks, and advertising matter,
or any similar property as it pertains to the Collateral, in completing
production of, advertising for sale, and selling any Collateral and, in
connection with Bank's exercise of its rights under this Section, Borrower's
rights under all licenses and all franchise agreements inure to Bank's benefit;

          (g) place a "hold" on any account maintained with Bank and/or deliver
a notice of exclusive control, any entitlement order, or other directions or
instructions pursuant to any Control Agreement or similar agreements providing
control of any Collateral;

          (h) demand and receive possession of Borrower's Books; and

          (i) exercise all rights and remedies available to Bank under the Loan
Documents or at law or equity, including all remedies provided under the Code
(including disposal of the Collateral pursuant to the terms thereof).

     9.2 POWER OF ATTORNEY. Borrower hereby irrevocably appoints Bank as its
lawful attorney-in-fact, exercisable upon the occurrence and during the
continuance of an Event of Default, to: (a) endorse Borrower's name on any
checks or other forms of payment or security; (b) sign Borrower's name on any
invoice or bill of lading for any Account or drafts against Account Debtors; (c)
settle and adjust disputes and claims about the Accounts directly with


                                       16

<PAGE>

Account Debtors, for amounts and on terms Bank determines reasonable; (d) make,
settle, and adjust all claims under Borrower's insurance policies; (e) pay,
contest or settle any Lien, charge, encumbrance, security interest, and adverse
claim in or to the Collateral, or any judgment based thereon, or otherwise take
any action to terminate or discharge the same; and (f) transfer the Collateral
into the name of Bank or a third party as the Code permits. Borrower hereby
appoints Bank as its lawful attorney-in-fact to sign Borrower's name on any
documents necessary to perfect or continue the perfection of any security
interest regardless of whether an Event of Default has occurred until all
Obligations have been satisfied in full and Bank is under no further obligation
to make Credit Extensions hereunder. Bank's foregoing appointment as Borrower's
attorney in fact, and all of Bank's rights and powers, coupled with an interest,
are irrevocable until all Obligations have been fully repaid and performed and
Bank's obligation to provide Credit Extensions terminates.

     9.3 ACCOUNTS VERIFICATION; COLLECTION. Whether or not an Event of Default
has occurred and is continuing, Bank may notify any Person owing Borrower money
of Bank's security interest in such funds and verify the amount of such account.
After the occurrence of an Event of Default, any amounts received by Borrower
shall be held in trust by Borrower for Bank, and, if requested by Bank, Borrower
shall immediately deliver such receipts to Bank in the form received from the
Account Debtor, with proper endorsements for deposit.

     9.4 PROTECTIVE PAYMENTS. If Borrower fails to obtain the insurance called
for by Section 6.4 or fails to pay any premium thereon or fails to pay any other
amount which Borrower is obligated to pay under this Agreement or any other Loan
Document, Bank may obtain such insurance or make such payment, and all amounts
so paid by Bank are Bank Expenses and immediately due and payable, bearing
interest at the then highest applicable rate, and secured by the Collateral.
Bank will make reasonable efforts to provide Borrower with notice of Bank
obtaining such insurance at the time it is obtained or within a reasonable time
thereafter. No payments by Bank are deemed an agreement to make similar payments
in the future or Bank's waiver of any Event of Default.

     9.5 APPLICATION OF PAYMENTS AND PROCEEDS. Unless an Event of Default has
occurred and is continuing, Bank shall apply any funds in its possession,
whether from Borrower account balances, payments, or proceeds realized as the
result of any collection of Accounts or other disposition of the Collateral,
first, to Bank Expenses, including without limitation, the reasonable costs,
expenses, liabilities, obligations and attorneys' fees incurred by Bank in the
exercise of its rights under this Agreement; second, to the interest due upon
any of the Obligations; and third, to the principal of the Obligations and any
applicable fees and other charges, in such order as Bank shall determine in its
sole discretion. Any surplus shall be paid to Borrower or other Persons legally
entitled thereto; Borrower shall remain liable to Bank for any deficiency. If an
Event of Default has occurred and is continuing, Bank may apply any funds in its
possession, whether from Borrower account balances, payments, proceeds realized
as the result of any collection of Accounts or other disposition of the
Collateral, or otherwise, to the Obligations in such order as Bank shall
determine in its sole discretion. Any surplus shall be paid to Borrower or other
Persons legally entitled thereto; Borrower shall remain liable to Bank for any
deficiency. If Bank, in its good faith business judgment, directly or indirectly
enters into a deferred payment or other credit transaction with any purchaser at
any sale of Collateral, Bank


                                       17

<PAGE>

shall have the option, exercisable at any time, of either reducing the
Obligations by the principal amount of the purchase price or deferring the
reduction of the Obligations until the actual receipt by Bank of cash therefor.

     9.6 BANK'S LIABILITY FOR COLLATERAL. So long as Bank complies with
reasonable banking practices regarding the safekeeping of the Collateral in the
possession or under the control of Bank, Bank shall not be liable or responsible
for: (a) the safekeeping of the Collateral; (b) any loss or damage to the
Collateral; (c) any diminution in the value of the Collateral; or (d) any act or
default of any carrier, warehouseman, bailee, or other Person. Borrower bears
all risk of loss, damage or destruction of the Collateral.

     9.7 NO WAIVER; REMEDIES CUMULATIVE. Bank's failure, at any time or times,
to require strict performance by Borrower of any provision of this Agreement or
any other Loan Document shall not waive, affect, or diminish any right of Bank
thereafter to demand strict performance and compliance herewith or therewith. No
waiver hereunder shall be effective unless signed by Bank and then is only
effective for the specific instance and purpose for which it is given. Bank's
rights and remedies under this Agreement and the other Loan Documents are
cumulative. Bank has all rights and remedies provided under the Code, by law, or
in equity. Bank's exercise of one right or remedy is not an election, and Bank's
waiver of any Event of Default is not a continuing waiver. Bank's delay in
exercising any remedy is not a waiver, election, or acquiescence.

     9.8 DEMAND WAIVER. Borrower waives demand, notice of default or dishonor,
notice of payment and nonpayment, notice of any default, nonpayment at maturity,
release, compromise, settlement, extension, or renewal of accounts, documents,
instruments, chattel paper, and guarantees held by Bank on which Borrower is
liable.

     10. NOTICES

     All notices, consents, requests, approvals, demands, or other communication
(collectively, "COMMUNICATION") by any party to this Agreement or any other Loan
Document must be in writing and shall be deemed to have been validly served,
given, or delivered: (a) upon the earlier of actual receipt and three (3)
Business Days after deposit in the U.S. mail, first class, registered or
certified mail return receipt requested, with proper postage prepaid; (b) upon
transmission, when sent by electronic mail or facsimile transmission; (c) one
(1) Business Day after deposit with a reputable overnight courier with all
charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of
which shall be addressed to the party to be notified and sent to the address,
facsimile number, or email address indicated below. Bank or Borrower may change
its address or facsimile number by giving the other party written notice thereof
in accordance with the terms of this Section 10.

          If to Borrower: Commvault Systems, Inc.
                          2 Crescent Place
                          Oceanport, New Jersey 07757-0900
                          Attn: Lou Miceli, Chief Financial Officer
                          Fax: (732) 870-4514
                          Email: lmiceli@commvault.com


                                       18

<PAGE>

         If to Bank: Silicon Valley Bank
                     5 Radnor Corporate Center, Suite 555
                     100 Matsonford Road
                     Radnor, PA 19087
                     Attn: Richard White
                     Fax: (610) 971-2063
                     Email: rwhite@svbank.com

     11. CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER AND JUDICIAL REFERENCE

     Pennsylvania law governs the Loan Documents without regard to principles of
conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction of
the State and Federal courts in Santa Clara County, California; provided,
however, that nothing in this Agreement shall be deemed to operate to preclude
Bank from bringing suit or taking other legal action in any other jurisdiction
to realize on the Collateral or any other security for the Obligations, or to
enforce a judgment or other court order in favor of Bank. Borrower expressly
submits and consents in advance to such jurisdiction in any action or suit
commenced in any such court, and Borrower hereby waives any objection that it
may have based upon lack of personal jurisdiction, improper venue, or forum non
conveniens and hereby consents to the granting of such legal or equitable relief
as is deemed appropriate by such court. Borrower hereby waives personal service
of the summons, complaints, and other process issued in such action or suit and
agrees that service of such summons, complaints, and other process may be made
by registered or certified mail addressed to Borrower at the address set forth
in Section 10 of this Agreement and that service so made shall be deemed
completed upon the earlier to occur of Borrower's actual receipt thereof or
three (3) days after deposit in the U.S. mails, proper postage prepaid.

BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE
OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY
CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER
CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS
AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES' AGREEMENT TO WAIVE THEIR
RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial
by jury is not enforceable, the parties hereto agree that any and all disputes
or controversies of any nature between them arising at any time shall be decided
by a reference to a private judge, mutually selected by the parties (or, if they
cannot agree, by the Presiding Judge of the Santa Clara County, California
Superior Court) appointed in accordance with California Code of Civil Procedure
Section 638 (or pursuant to comparable provisions of federal law if the dispute
falls within the exclusive jurisdiction of the federal courts), sitting without
a jury, in Santa Clara County, California; and the parties hereby submit to the
jurisdiction of such court. The reference proceedings shall be conducted
pursuant to and in accordance with the provisions of California Code of Civil
Procedure Sections 638 through 645.1, inclusive. The private judge shall have
the power, among others, to grant provisional relief, including without
limitation, entering temporary restraining orders, issuing preliminary and
permanent injunctions and appointing


                                       19

<PAGE>

receivers. All such proceedings shall be closed to the public and confidential
and all records relating thereto shall be permanently sealed. If during the
course of any dispute, a party desires to seek provisional relief, but a judge
has not been appointed at that point pursuant to the judicial reference
procedures, then such party may apply to the Santa Clara County, California
Superior Court for such relief. The proceeding before the private judge shall be
conducted in the same manner as it would be before a court under the rules of
evidence applicable to judicial proceedings. The parties shall be entitled to
discovery which shall be conducted in the same manner as it would be before a
court under the rules of discovery applicable to judicial proceedings. The
private judge shall oversee discovery and may enforce all discovery rules and
order applicable to judicial proceedings in the same manner as a trial court
judge. The parties agree that the selected or appointed private judge shall have
the power to decide all issues in the action or proceeding, whether of fact or
of law, and shall report a statement of decision thereon pursuant to the
California Code of Civil Procedure Section 644(a). Nothing in this paragraph
shall limit the right of any party at any time to exercise self-help remedies,
foreclose against collateral, or obtain provisional remedies. The private judge
shall also determine all issues relating to the applicability, interpretation,
and enforceability of this paragraph.

     12. GENERAL PROVISIONS

     12.1 SUCCESSORS AND ASSIGNS. This Agreement binds and is for the benefit of
the successors and permitted assigns of each party. Borrower may not assign this
Agreement or any rights or obligations under it without Bank's prior written
consent (which may be granted or withheld in Bank's discretion). Bank has the
right, without the consent of or notice to Borrower, to sell, transfer,
negotiate, or grant participation in all or any part of, or any interest in,
Bank's obligations, rights, and benefits under this Agreement and the other Loan
Documents.

     12.2 INDEMNIFICATION. Borrower agrees to indemnify, defend and hold Bank
and its directors, officers, employees, agents, attorneys, or any other Person
affiliated with or representing Bank harmless against: (a) all obligations,
demands, claims, and liabilities (collectively, "CLAIMS") asserted by any other
party in connection with the transactions contemplated by the Loan Documents;
and (b) all losses or Bank Expenses incurred, or paid by Bank from, following,
or arising from transactions between Bank and Borrower (including reasonable
attorneys' fees and expenses), except for Claims and/or losses directly caused
by Bank's gross negligence or willful misconduct.

     12.3 LIMITATION OF ACTIONS. Any claim or cause of action by Borrower
against Bank, its directors, officers, employees, agents, accountants,
attorneys, or any other Person affiliated with or representing Bank based upon,
arising from, or relating to this Loan Agreement or any other Loan Document, or
any other transaction contemplated hereby or thereby or relating hereto or
thereto, or any other matter, cause or thing whatsoever, occurred, done, omitted
or suffered to be done by Bank, its directors, officers, employees, agents,
accountants or attorneys, shall be barred unless asserted by Borrower by the
commencement of an action or proceeding in a court of competent jurisdiction by
(a) the filing of a complaint within one year from the earlier of (i) the date
any of Borrower's officers or directors had knowledge of the first act, the
occurrence or omission upon which such claim or cause of action, or any part
thereof, is based, or (ii) the date this Agreement is terminated, and (b) the
service of a summons and complaint on an officer of Bank, or on any other Person
authorized to accept service on behalf of Bank, within thirty (30)


                                       20

<PAGE>

days thereafter. Borrower agrees that such one-year period is a reasonable and
sufficient time for Borrower to investigate and act upon any such claim or cause
of action. The one-year period provided herein shall not be waived, tolled, or
extended except by the written consent of Bank in its sole discretion. This
provision shall survive any termination of this Loan Agreement or any other Loan
Document.

     12.4 TIME OF ESSENCE. Time is of the essence for the performance of all
Obligations in this Agreement.

     12.5 SEVERABILITY OF PROVISIONS. Each provision of this Agreement is
severable from every other provision in determining the enforceability of any
provision.

     12.6 AMENDMENTS IN WRITING; INTEGRATION. All amendments to this Agreement
must be in writing and signed by both Bank and Borrower. This Agreement and the
Loan Documents represent the entire agreement about this subject matter and
supersede prior negotiations or agreements. All prior agreements,
understandings, representations, warranties, and negotiations between the
parties about the subject matter of this Agreement and the Loan Documents merge
into this Agreement and the Loan Documents.

     12.7 COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by different parties on separate counterparts, each of which,
when executed and delivered, are an original, and all taken together, constitute
one Agreement.

     12.8 SURVIVAL. All covenants, representations and warranties made in this
Agreement continue in full force until this Agreement has terminated pursuant to
its terms and all Obligations (other than inchoate indemnity obligations and any
other obligations which, by their terms, are to survive the termination of this
Agreement) have been satisfied. The obligation of Borrower in Section 12.2 to
indemnify Bank shall survive until the statute of limitations with respect to
such claim or cause of action shall have run.

     12.9 CONFIDENTIALITY. In handling any confidential information, Bank shall
exercise the same degree of care that it exercises for its own proprietary
information, but disclosure of information may be made: (a) to Bank's
Subsidiaries or Affiliates; (b) to prospective transferees or purchasers of any
interest in the Credit Extensions (provided, however, Bank shall use
commercially reasonable efforts to obtain such prospective transferee's or
purchaser's agreement to the terms of this provision); (c) as required by law,
regulation, subpoena, or other order; (d) to Bank's regulators or as otherwise
required in connection with Bank's examination or audit; and (e) as Bank
considers appropriate in exercising remedies under this Agreement. Confidential
information does not include information that either: (i) is in the public
domain or in Bank's possession when disclosed to Bank, or becomes part of the
public domain after disclosure to Bank; or (ii) is disclosed to Bank by a third
party, if Bank does not know that the third party is prohibited from disclosing
the information.

     12.10 ATTORNEYS' FEES, COSTS AND EXPENSES. In any action or proceeding
between Borrower and Bank arising out of or relating to the Loan Documents, the
prevailing party shall be entitled to recover its reasonable attorneys' fees and
other costs and expenses incurred, in addition to any other relief to which it
may be entitled.


                                       21

<PAGE>

     12.11 RIGHT OF SETOFF. Borrower hereby grants to Bank a Lien and a right of
setoff as security for all Obligations to Bank, whether now existing or
hereafter arising upon and against all deposits, credits, collateral and
property, now or hereafter in the possession, custody, safekeeping or control of
Bank or any entity under the control of Bank (including a subsidiary of Bank) or
in transit to any of them. At any time after the occurrence and during the
continuance of an Event of Default, without demand or notice, Bank may setoff
the same or any part thereof and apply the same to any liability or Obligation
of Borrower even though unmatured and regardless of the adequacy of any other
collateral securing the Obligations. ANY AND ALL RIGHTS TO REQUIRE BANK TO
EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH
SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO
SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWINGLY,
VOLUNTARILY AND IRREVOCABLY WAIVED.

     13. DEFINITIONS

     13.1 DEFINITIONS. As used in this Agreement, the following terms have the
following meanings:

     "ACCOUNT" is any "account" as defined in the Code with such additions to
such term as may hereafter be made, and includes, without limitation, all
accounts receivable and other sums owing to Borrower.

     "ACCOUNT DEBTOR" is any "account debtor" as defined in the Code with such
additions to such term as may hereafter be made.

     "ACT" is defined in Section 6.2(a).

     "AFFILIATE" of any Person is (a) a Person that owns or controls directly or
indirectly the Person, (b) any Person that controls or is controlled by or is
under common control with the Person, and (c) each of that Person's senior
executive officers, directors, partners and, for any Person that is a limited
liability company, that Person's managers and members (such officers, directors,
managers and members being called "Non Natural Affiliates").

     "AGREEMENT" is defined in the preamble hereof.

     "ALTERNATE RATE" is a floating rate equal to Prime Rate, minus one percent
(1.0%) per annum.

     "BANK" is defined in the preamble hereof.

     "BANK EXPENSES" are all audit fees and expenses, costs, and expenses
(including reasonable attorneys' fees and expenses) for preparing, negotiating,
administering, defending and enforcing the Loan Documents (including, without
limitation, those incurred in connection with appeals or Insolvency Proceedings)
or otherwise incurred with respect to Borrower.

     "BORROWER" is defined in the preamble hereof.


                                       22

<PAGE>

     "BORROWER'S BOOKS" are all Borrower's books and records including ledgers,
federal and state tax returns, records regarding Borrower's assets or
liabilities, the Collateral, business operations or financial condition, and all
computer programs or storage or any equipment containing such information.

     "BORROWING RESOLUTIONS" are, with respect to any Person, those resolutions
substantially in the form attached hereto as Exhibit D.

     "BUSINESS DAY" is any day other than a Saturday, Sunday or other day on
which banking institutions in the State of California are authorized or required
by law or other governmental action to close, except that if any determination
of a "Business Day" shall relate to the Term Loan, the term "Business Day" shall
also mean a day on which dealings are carried on in the London interbank market.

     "CASH EQUIVALENTS" means (a) marketable direct obligations issued or
unconditionally guaranteed by the United States or any agency or any State
thereof having maturities of not more than one (1) year from the date of
acquisition; (b) commercial paper maturing no more than one (1) year after its
creation and having the highest rating from either Standard & Poor's Ratings
Group or Moody's Investors Service, Inc.; and (c) Bank's certificates of deposit
issued maturing no more than one (1) year after issue.

     "CODE" is the Uniform Commercial Code, as the same may, from time to time,
be enacted and in effect in the Commonwealth of Pennsylvania; provided, that, to
the extent that the Code is used to define any term herein or in any Loan
Document and such term is defined differently in different Articles or Divisions
of the Code, the definition of such term contained in Article or Division 9
shall govern; provided further, that in the event that, by reason of mandatory
provisions of law, any or all of the attachment, perfection, or priority of, or
remedies with respect to, Bank's Lien on any Collateral is governed by the
Uniform Commercial Code in effect in a jurisdiction other than the State of
California, the term "CODE" shall mean the Uniform Commercial Code as enacted
and in effect in such other jurisdiction solely for purposes on the provisions
thereof relating to such attachment, perfection, priority, or remedies and for
purposes of definitions relating to such provisions.

     "COLLATERAL" is any and all properties, rights and assets of Borrower
described on Exhibit A.

     "COLLATERAL ACCOUNT" is any Deposit Account, Securities Account, or
Commodity Account.

     "COMMODITY ACCOUNT" is any "commodity account" as defined in the Code with
such additions to such term as may hereafter be made.

     "COMMUNICATION" is defined in Section 10.

     "COMPLIANCE CERTIFICATE" is that certain certificate in the form attached
hereto as Exhibit C.


                                       23

<PAGE>

     "CONTINGENT OBLIGATION" is, for any Person, any direct or indirect
liability, contingent or not, of that Person for (a) any indebtedness, lease,
dividend, letter of credit or other obligation of another such as an obligation
directly or indirectly guaranteed, endorsed, co-made, discounted or sold with
recourse by that Person, or for which that Person is directly or indirectly
liable; (b) any obligations for undrawn letters of credit for the account of
that Person; and (c) all obligations from any interest rate, currency or
commodity swap agreement, interest rate cap or collar agreement, or other
agreement or arrangement designated to protect a Person against fluctuation in
interest rates, currency exchange rates or commodity prices; but "Contingent
Obligation" does not include endorsements in the ordinary course of business.
The amount of a Contingent Obligation is the stated or determined amount of the
primary obligation for which the Contingent Obligation is made or, if not
determinable, the maximum reasonably anticipated liability for it determined by
the Person in good faith; but the amount may not exceed the maximum of the
obligations under any guarantee or other support arrangement.

     "CONTROL AGREEMENT" is a control agreement substantially in the form of
Exhibit F.

     "CREDIT EXTENSION" is any Term Loan or any other extension of credit by
Bank for Borrower's benefit.

     "CURRENT LIABILITIES" are all obligations and liabilities of Borrower to
Bank that mature within one (1) year.

     "DEFAULT" means any event which with notice or passage of time or both,
would constitute an Event of Default.

     "DEFAULT RATE" is defined in Section 2.3(c).

     "DEFERRED REVENUE" is all amounts received or invoiced in advance of
performance under contracts and not yet recognized as revenue.

     "DEPOSIT ACCOUNT" is any "deposit account" as defined in the Code with such
additions to such term as may hereafter be made.

     "DESIGNATED DEPOSIT ACCOUNT" is Borrower's deposit account, account number
_____________, maintained with Bank.

     "DOLLARS," "DOLLARS" and "$" each mean lawful money of the United States.

     "EFFECTIVE DATE" is the date Bank executes this Agreement and as indicated
on the signature page hereof.

     "EQUIPMENT" is all "equipment" as defined in the Code with such additions
to such term as may hereafter be made, and includes without limitation all
machinery, fixtures, goods, vehicles (including motor vehicles and trailers),
and any interest in any of the foregoing.

     "ERISA" is the Employment Retirement Income Security Act of 1974, and its
regulations.


                                       24

<PAGE>

     "EVENT OF DEFAULT" is defined in Section 8.

     "FUNDING DATE" is the date on which the Term Loan is made to or on account
of Borrower which shall be a Business Day.

     "GAAP" is generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other Person as may be approved by a significant segment of the accounting
profession, which are applicable to the circumstances as of the date of
determination.

     "GENERAL INTANGIBLES" is all "general intangibles" as defined in the Code
in effect on the date hereof with such additions to such term as may hereafter
be made, and includes without limitation, all copyright rights, copyright
applications, copyright registrations and like protections in each work of
authorship and derivative work, whether published or unpublished, any patents,
trademarks, service marks and, to the extent permitted under applicable law, any
applications therefor, whether registered or not, any trade secret rights,
including any rights to unpatented inventions, payment intangibles, royalties,
contract rights, goodwill, franchise agreements, purchase orders, customer
lists, route lists, telephone numbers, domain names, claims, income and other
tax refunds, security and other deposits, options to purchase or sell real or
personal property, rights in all litigation presently or hereafter pending
(whether in contract, tort or otherwise), insurance policies (including without
limitation key man, property damage, and business interruption insurance),
payments of insurance and rights to payment of any kind.

     "INDEBTEDNESS" is (a) indebtedness for borrowed money or the deferred price
of property or services, such as reimbursement and other obligations for surety
bonds and letters of credit, (b) obligations evidenced by notes, bonds,
debentures or similar instruments, (c) capital lease obligations, and (d)
Contingent Obligations.

     "INSOLVENCY PROCEEDING" is any proceeding by or against any Person under
the United States Bankruptcy Code, or any other bankruptcy or insolvency law,
including assignments for the benefit of creditors, compositions, extensions
generally with its creditors, or proceedings seeking reorganization,
arrangement, or other relief.

     "INTEREST PERIOD" means the period commencing on the Funding Date and
ending on the date that is one (1) month after the Funding Date, and each
successive one (1) month period until the Term Loan Maturity Date; provided,
however, that (a) no Interest Period shall end later than the Term Loan Maturity
Date, (b) the last day of an Interest Period shall be determined in accordance
with the practices of the LIBOR interbank market as from time to time in effect,
(c) if any Interest Period would otherwise end on a day that is not a Business
Day, that Interest Period shall be extended to the following Business Day unless
the result of such extension would be to carry such Interest Period into another
calendar month, in which event such Interest Period shall end on the preceding
Business Day, (d) any Interest Period that begins on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day
in the calendar month at the end of such Interest Period) shall end on the last
Business Day of the calendar month at the end of such Interest Period, and (e)
interest shall accrue from and include


                                       25

<PAGE>

the first Business Day of an Interest Period but exclude the last Business Day
of such Interest Period.

     "INTEREST RATE DETERMINATION DATE" means each date for calculating the
LIBOR for purposes of determining the interest rate in respect of an Interest
Period. The Interest Rate Determination Date shall be the second Business Day
prior to the first day of the related Interest Period for the Term Loan.

     "INVENTORY" is all "inventory" as defined in the Code in effect on the date
hereof with such additions to such term as may hereafter be made, and includes
without limitation all merchandise, raw materials, parts, supplies, packing and
shipping materials, work in process and finished products, including without
limitation such inventory as is temporarily out of Borrower's custody or
possession or in transit and including any returned goods and any documents of
title representing any of the above.

     "INVESTMENT" is any beneficial ownership interest in any Person (including
stock, partnership interest or other securities), and any loan, advance or
capital contribution to any Person.

     "IP AGREEMENT" is that certain Intellectual Property Security Agreement
executed and delivered by Borrower to Bank dated as of the Effective Date.

     "LIBOR" means, for any Interest Rate Determination Date, the rate of
interest per annum determined by Bank to be the per annum rate of interest at
which deposits in Dollars are offered to Bank in the London interbank market
(rounded upward, if necessary, to the nearest 1/1000th of one percent (0.001%))
in which Bank customarily participates at 11:00 a.m. (local time in such
interbank market) two (2) Business Days prior to the first day of such Interest
Period for a period approximately equal to such Interest Period and in an amount
approximately equal to the amount of the applicable Credit Extension.

     "LIBOR RATE" means, for each Interest Period, an interest rate per annum
(rounded upward to the nearest 1/1000th of one percent (0.001%)) equal to LIBOR
for such Interest Period divided by one (1) minus the Reserve Requirement for
such Interest Period.

     "LIBOR RATE MARGIN" is one and one half of one percent (1.50%).

     "LIEN" is a mortgage, lien, deed of trust, charge, pledge, security
interest or other encumbrance.

     "LOAN DOCUMENTS" are, collectively, this Agreement, the Perfection
Certificate, the IP Agreement, any note or guaranty, executed by Borrower or any
other Person and any other present or future agreement for the benefit of Bank
in connection with this Agreement, all as amended, restated, or otherwise
modified.

     "MATERIAL ADVERSE CHANGE" is (a) a material impairment in the perfection or
priority of Bank's Lien in the Collateral or in the value of such Collateral;
(b) a material adverse change in


                                       26

<PAGE>

the business, operations, or condition (financial or otherwise) of Borrower; or
(c) a material impairment of the prospect of repayment of any portion of the
Obligations.

     "NOTICE OF BORROWING" means a notice given by Borrower to Bank
substantially in the form of Exhibit B, with appropriate insertions.

     "OBLIGATIONS" are Borrower's obligation to pay when due any debts,
principal, interest, Bank Expenses and other amounts Borrower owes Bank now or
later, whether under this Agreement, the Loan Documents, or otherwise,
including, without limitation, all obligations relating to letters of credit,
cash management services, and foreign exchange contracts, if any, and including
interest accruing after Insolvency Proceedings begin and debts, liabilities, or
obligations of Borrower assigned to Bank, and the performance of Borrower's
duties under the Loan Documents.

     "OPERATING DOCUMENTS" are, for any Person, such Person's formation
documents, as certified with the Secretary of State of such Person's state of
formation on a date that is no earlier than 30 days prior to the Effective Date,
and, (a) if such Person is a corporation, its bylaws in current form, (b) if
such Person is a limited liability company, its limited liability company
agreement (or similar agreement), and (c) if such Person is a partnership, its
partnership agreement (or similar agreement), each of the foregoing with all
current amendments or modifications thereto.

     "PERFECTION CERTIFICATE" is defined in Section 5.1.

     "PERMITTED INDEBTEDNESS" is:

     (a) Borrower's Indebtedness to Bank under this Agreement and the other Loan
Documents;

     (b) Indebtedness existing on the Effective Date and shown on the Perfection
Certificate;

     (c) Subordinated Debt;

     (d) unsecured Indebtedness to trade creditors incurred in the ordinary
course of business;

     (e) Indebtedness incurred as a result of endorsing negotiable instruments
received in the ordinary course of business;

     (f) Indebtedness in an aggregate principal amount not to exceed One Million
Dollars ($1,000,000) secured by Permitted Liens; and

     (g) extensions, refinancings, modifications, amendments and restatements of
any items of Permitted Indebtedness (a) through (f) above, provided that the
principal amount thereof is not increased or the terms thereof are not modified
to impose more burdensome terms upon Borrower or its Subsidiary, as the case may
be.


                                       27

<PAGE>

     "PERMITTED INVESTMENTS" are:

     (a) Investments shown on the Perfection Certificate and existing on the
Effective Date;

     (b) Cash Equivalents;

     (c) Investments consisting of the endorsement of negotiable instruments for
deposit or collection or similar transactions in the ordinary course of
Borrower;

     (d) Investments consisting of deposit accounts in which Bank has a
perfected security interest;

     (e) Investments accepted in connection with Transfers permitted by Section
7.1;

     (f) Investments of Subsidiaries in or to other Subsidiaries or Borrower and
Investments by Borrower in Subsidiaries not to exceed One Million Dollars
($1,000,000);

     (g) Investments consisting of (i) travel advances and employee relocation
loans and other employee loans and advances in the ordinary course of business,
and (ii) loans to employees, officers or directors relating to the purchase of
equity securities of Borrower or its Subsidiaries pursuant to employee stock
purchase plans or agreements approved by Borrower's Board of Directors;

     (h) Investments (including debt obligations) received in connection with
the bankruptcy or reorganization of customers or suppliers and in settlement of
delinquent obligations of, and other disputes with, customers or suppliers
arising in the ordinary course of business; and

     (i) Investments consisting of notes receivable of, or prepaid royalties and
other credit extensions, to customers and suppliers who are not Affiliates, in
the ordinary course of business; provided that this paragraph (i) shall not
apply to Investments of Borrower in any Subsidiary.

     "PERMITTED LIENS" are:

     (a) Liens existing on the Effective Date and shown on the Perfection
Certificate or arising under this Agreement and the other Loan Documents;

     (b) Liens for taxes, fees, assessments or other government charges or
levies, either not delinquent or being contested in good faith and for which
Borrower maintains adequate reserves on Borrower's Books, if they have no
priority over any of Bank's Liens;

     (c) purchase money Liens (i) on Equipment acquired or held by Borrower
incurred for financing the acquisition of the Equipment securing no more than
Five Hundred Thousand Dollars ($500,000) in the aggregate amount outstanding, or
(ii) existing on Equipment when acquired, if the Lien is confined to the
property and improvements and the proceeds of the Equipment;


                                       28

<PAGE>

     (d) statutory Liens securing claims or demands of materialmen, mechanics,
carriers, warehousemen, landlords and other Persons imposed without action of
such parties, provided the aggregate amount of such Liens does not at any time
exceed Fifty Thousand Dollars ($50,000);

     (e) Liens to secure payment of workers' compensation, employment insurance,
old-age pensions, social security and other like obligations incurred in the
ordinary course of business, provided, they have no priority over any of Bank's
Liens and the aggregate amount of the Indebtedness secured by such Liens does
not at any time exceed Fifty Thousand Dollars ($50,000);

     (f) Liens incurred in the extension, renewal or refinancing of the
indebtedness secured by Liens described in (a) through (c), but any extension,
renewal or replacement Lien must be limited to the property encumbered by the
existing Lien and the principal amount of the indebtedness may not increase;

     (g) leases or subleases of real property granted in the ordinary course of
business, and leases, subleases, non-exclusive licenses or sublicenses of
property (other than real property or intellectual property) granted in the
ordinary course of Borrower's business, if the leases, subleases, licenses and
sublicenses do not prohibit granting Bank a security interest;

     (h) non-exclusive license of intellectual property granted to third parties
in the ordinary course of business;

     (i) Liens arising from judgments, decrees or attachments in circumstances
not constituting an Event of Default under Section 8.4 or 8.7; and

     (j) Liens in favor of other financial institutions arising in connection
with Borrower's deposit and/or securities accounts held at such institutions,
provided that Bank has a perfected security interest in the amounts held in such
securities accounts.

     "PERSON" is any individual, sole proprietorship, partnership, limited
liability company, joint venture, company, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, firm, joint
stock company, estate, entity or government agency.

     "PRIME RATE" is Bank's most recently announced "prime rate," even if it is
not Bank's lowest rate.

     "QUICK ASSETS" is, on any date, Borrower's unrestricted cash, Cash
Equivalents, net billed accounts receivable and investments with maturities of
fewer than twelve (12) months determined according to GAAP.

     "REGISTERED ORGANIZATION" is any "registered organization" as defined in
the Code with such additions to such term as may hereafter be made

     "REGULATORY CHANGE" means, with respect to Bank, any change on or after the
date of this Agreement in United States federal, state, or foreign laws or
regulations, including Regulation D, or the adoption or making on or after such
date of any interpretations, directives, or requests applying to a class of
lenders including Bank, of or under any United States federal or


                                       29

<PAGE>

state, or any foreign, laws or regulations (whether or not having the force of
law) by any court or governmental or monetary authority charged with the
interpretation or administration thereof.

     "RESPONSIBLE OFFICER" is any of the Chief Executive Officer, President,
Chief Financial Officer and Controller of Borrower.

     "RESERVE REQUIREMENT" means, for any Interest Period, the average maximum
rate at which reserves (including any marginal, supplemental, or emergency
reserves) are required to be maintained during such Interest Period under
Regulation D against "Eurocurrency liabilities" (as such term is used in
Regulation D) by member banks of the Federal Reserve System. Without limiting
the effect of the foregoing, the Reserve Requirement shall reflect any other
reserves required to be maintained by Bank by reason of any Regulatory Change
against (a) any category of liabilities which includes deposits by reference to
which the LIBOR Rate is to be determined as provided in the definition of LIBOR
or (b) any category of extensions of credit or other assets which include Credit
Extensions.

     "SECURITIES ACCOUNT" is any "securities account" as defined in the Code
with such additions to such term as may hereafter be made.

     "SUBORDINATED DEBT" is indebtedness incurred by Borrower subordinated to
all of Borrower's now or hereafter indebtedness to Bank (pursuant to a
subordination, intercreditor, or other similar agreement in form and substance
satisfactory to Bank entered into between Bank and the other creditor), on terms
acceptable to Bank.

     "SUBSIDIARY" means, with respect to any Person, any Person of which more
than 50% of the voting stock or other equity interests is owned or controlled,
directly or indirectly, by such Person or one or more Affiliates of such Person
(other than Credit Suisse, or any Non-Natural Affiliates).

     "TERM LOAN" is a loan made by Bank pursuant to the terms of Section 2.1.1
hereof.

     "TERM LOAN AMOUNT" is an aggregate amount equal to Twenty Million Dollars
($20,000,000) outstanding at any time.

     "TERM LOAN MATURITY DATE" is the day which is twenty-four (24) months after
the Funding Date, but in no event later than March 31, 2008.

     "TERM LOAN PAYMENT" is defined in Section 2.1.1(b).

     "TRANSFER" is defined in Section 7.1.

                            [Signature page follows.]


                                       30

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the Effective Date.

BORROWER:

COMMVAULT SYSTEMS, INC.


By /s/ Louis F. Miceli
   ----------------------------------
Name: Louis F. Miceli
Title: CFO


BANK:

SILICON VALLEY BANK


By /s/ Richard White
   ----------------------------------
Name: Richard White
Title: Relationship Manager

Effective Date: May 2, 2006

                 [Signature page to Loan and Security Agreement]


                                       31

<PAGE>

                                    EXHIBIT A

The Collateral consists of all of Borrower's right, title and interest in and to
the following personal property:

     All goods, Accounts (including health-care receivables), Equipment,
Inventory, contract rights or rights to payment of money, leases, license
agreements, franchise agreements, General Intangibles, commercial tort claims,
documents, instruments (including any promissory notes), chattel paper (whether
tangible or electronic), cash, deposit accounts, fixtures, letters of credit
rights (whether or not the letter of credit is evidenced by a writing),
securities, and all other investment property, supporting obligations, and
financial assets, whether now owned or hereafter acquired, wherever located; and

     All Borrower's Books relating to the foregoing, and any and all claims,
rights and interests in any of the above and all substitutions for, additions,
attachments, accessories, accessions and improvements to and replacements,
products, proceeds and insurance proceeds of any or all of the foregoing.

     All other terms contained in this Exhibit, unless otherwise indicated,
shall have the meanings provided by the Code (as defined herein), to the extent
such terms are defined in the Code. For purposes hereof, the following terms
shall have the following meanings:

     "ACCOUNTS" are all existing and later arising accounts, contract rights,
and other obligations owed Borrower in connection with its sale or lease of
goods (including licensing software and other technology) or provision of
services, all credit insurance, guaranties, other security and all merchandise
returned or reclaimed by Borrower and Borrower's Books relating to any of the
foregoing, as such definition may be amended from time to time according to the
Code.

     "BORROWER'S BOOKS" are all Borrower's books and records including ledgers,
records regarding Borrower's assets or liabilities, the Collateral, business
operations or financial condition and all computer programs or discs or any
equipment containing the information.

     "CODE" is the Uniform Commercial Code as adopted in Pennsylvania as amended
and in effect from time to time.

     "COPYRIGHTS" are all copyright rights, applications or registrations and
like protections in each work or authorship or derivative work, whether
published or not (whether or not it is a trade secret) now or later existing,
created, acquired or held.

     "EQUIPMENT" is all present and future machinery, equipment, tenant
improvements, furniture, fixtures, vehicles, tools, parts and attachments in
which Borrower has any interest.


                                Exhibit A Page 1

<PAGE>

     "INTELLECTUAL PROPERTY" is:

          (a) Copyrights, Trademarks, Mask Works and Patents including
amendments, renewals, extensions, and all licenses or other rights to use and
all license fees and royalties from the use;

          (b) Any trade secrets and any intellectual property rights in computer
software, chip design, chip mask works and computer software products now or
later existing, created, acquired or held;

          (c) All design rights, including chips, masks and associated software
which may be available to Borrower now or later created, acquired or held;

          (d) Any claims for damages (past, present or future) for infringement
of any of the rights above, with the right, but not the obligation, to sue and
collect damages for use or infringement of the intellectual property rights
above;

          (e) All Proceeds and products of the foregoing, including all
insurance, indemnity or warranty payments.

     "INVENTORY" is present and future inventory in which Borrower has any
interest, including merchandise, raw materials, parts, supplies, packing and
shipping materials, work in process and finished products intended for sale or
lease or to be furnished under a contract of service, of every kind and
description now or later owned by or in the custody or possession, actual or
constructive, of Borrower, including inventory temporarily out of its custody or
possession or in transit and including returns on any accounts or other proceeds
(including insurance proceeds) from the sale or disposition of any of the
foregoing and any documents of title.

     "LETTER-OF-CREDIT RIGHT" means a right to payment or performance under a
letter of credit, whether or not the beneficiary has demanded or is at the time
entitled to demand payment or performance.

     "MASK WORKS" are all mask works or similar rights available for the
protection of semiconductor chips, now owned or later acquired.

     "PATENTS" are patents, patent applications and like protections, including
improvements, divisions, continuations, renewals, reissues, extensions and
continuations in part of the same.

     "PROCEEDS" has the meaning described in the Code as in effect from time to
time.

     "SUPPORTING OBLIGATION" means a letter-of-credit right, secondary
obligation or obligation of a secondary obligor or that supports the payment or
performance of an account, chattel paper, a document, a general intangible, an
instrument or investment property.

     "TRADEMARKS" are trademark and service mark rights, registered or not,
applications to register and registrations and like protections, and the entire
goodwill of the business of Borrower connected with the trademarks.


                                Exhibit A Page 2

<PAGE>

                                    EXHIBIT B

                           FORM OF NOTICE OF BORROWING
                             COMMVAULT SYSTEMS, INC.

                                                            Date: ______________

TO: SILICON VALLEY BANK
    3003 Tasman Drive
    Santa Clara, CA 95054
    Attention: Corporate Services Department

RE: Loan and Security Agreement dated as of March __, 2006 (as amended,
    modified, supplemented or restated from time to time, the "Loan
    Agreement"), by and between Commvault Systems, Inc. ("Borrower"), and
    Silicon Valley Bank ("Bank")

Ladies and Gentlemen:

     The undersigned refers to the Loan Agreement, the terms defined therein and
used herein as so defined, and hereby gives you notice irrevocably, pursuant to
Section 3.2 of the Loan Agreement, of the borrowing of an Advance.

     1. The Funding Date, which shall be a Business Day, of the requested
borrowing is _______________.

     The undersigned hereby certifies that the following statements are true on
the date hereof, and will be true on the date of the proposed Advance before and
after giving effect thereto, and to the application of the proceeds therefrom,
as applicable:

          (a) all representations and warranties of Borrower contained in the
     Loan Agreement are true, accurate and complete in all material respects as
     of the date hereof;

          (b) no Default or Event of Default has occurred and is continuing, or
     would result from such proposed Credit Extension; and

          (c) the requested Credit Extension will not exceed the Term Loan
     Amount.

BORROWER                             COMMVAULT SYSTEMS, INC.


                                     By:
                                         ---------------------------------------
                                     Name:
                                           -------------------------------------
                                     Title:
                                            ------------------------------------


                                Exhibit B Page 1

<PAGE>

For internal Bank use only

<TABLE>
<CAPTION>
LIBOR Pricing Date   LIBOR   LIBOR Variance   Maturity Date
------------------   -----   --------------   -------------
<S>                  <C>     <C>              <C>
                                  ____%
</TABLE>


                                Exhibit B Page 2

<PAGE>

                                    EXHIBIT C

                             COMPLIANCE CERTIFICATE


TO: SILICON VALLEY BANK                                     Date: ______________
FROM: COMMVAULT SYSTEMS, INC.

     The undersigned authorized officer of COMMVAULT SYSTEMS, INC. ("Borrower")
certifies that under the terms and conditions of the Loan and Security Agreement
between Borrower and Bank (the "Agreement"), (1) Borrower is in complete
compliance for the period ending _______________ with all required covenants
except as noted below, (2) there are no Events of Default, (3) all
representations and warranties in the Agreement are true and correct in all
material respects on this date except as noted below; provided, however, that
such materiality qualifier shall not be applicable to any representations and
warranties that already are qualified or modified by materiality in the text
thereof; and provided, further that those representations and warranties
expressly referring to a specific date shall be true, accurate and complete in
all material respects as of such date, (4) Borrower, and each of its
Subsidiaries, has timely filed all required tax returns and reports, and
Borrower has timely paid all foreign, federal, state and local taxes,
assessments, deposits and contributions owed by Borrower except as otherwise
permitted pursuant to the terms of Section 5.8of the Agreement, and (5) no Liens
have been levied or claims made against Borrower or any of its Subsidiaries
relating to unpaid employee payroll or benefits of which Borrower has not
previously provided written notification to Bank. Attached are the required
documents supporting the certification. The undersigned certifies that these are
prepared in accordance with GAAP consistently applied from one period to the
next except as explained in an accompanying letter or footnotes. The undersigned
acknowledges that no borrowings may be requested at any time or date of
determination that Borrower is not in compliance with any of the terms of the
Agreement, and that compliance is determined not just at the date this
certificate is delivered. Capitalized terms used but not otherwise defined
herein shall have the meanings given them in the Agreement.

PLEASE INDICATE COMPLIANCE STATUS BY CIRCLING YES/NO UNDER "COMPLIES" COLUMN.

<TABLE>
<CAPTION>
              REPORTING COVENANT                          REQUIRED            COMPLIES
              ------------------                          --------            --------
<S>                                             <C>                           <C>
PRE-IPO
Monthly financial statements with
Compliance Certificate                          Monthly within 30 days         Yes No
Annual financial statement (CPA Audited) + CC   FYE within 120 days            Yes No
Annual Board Projections                        Board Approval plus 30 days    Yes No

POST-IPO
Monthly Cash Balance Report                     Monthly within 7 days          Yes No
Compliance Certificate                          Quarterly within 45 days       Yes No
10-Q and 8-K                                    Quarterly within 45 days       Yes No
10-K                                            FYE plus 120 days              Yes No
Annual Board Projections                        Board Approval plus 30 days    Yes No
</TABLE>


                                Exhibit C Page 1

<PAGE>

The following Intellectual Property was registered after the Effective Date (if
no registrations, state "None")

<TABLE>
<CAPTION>
     FINANCIAL COVENANT         REQUIRED      ACTUAL    COMPLIES
     ------------------        ----------   ---------   --------
<S>                            <C>          <C>         <C>
Maintain on a Monthly Basis:
Minimum Quick Ratio            ___1.5:1.0   _____:1.0    Yes No
</TABLE>

     The financial covenant analysis and information set forth in Schedule 1
attached hereto is true and accurate as of the date of this Certificate.

     The following are the exceptions with respect to the certification above:
(If no exceptions exist, state "No exceptions to note.")

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

COMMVAULT SYSTEMS, INC.                 BANK USE ONLY


By:                                     Received by:
    ---------------------------------                ---------------------------
Name:                                                AUTHORIZED SIGNER
      -------------------------------   Date:
Title:                                        ----------------------------------
       ------------------------------   Verified:
                                                  ------------------------------
                                                  AUTHORIZED SIGNER
                                        Date:
                                              ----------------------------------
                                        Compliance Status: Yes  No


                                Exhibit C Page 2

<PAGE>

                      SCHEDULE 1 TO COMPLIANCE CERTIFICATE

                         FINANCIAL COVENANTS OF BORROWER

Dated: ____________________

I.   ADJUSTED QUICK RATIO (Section 6.6)

Required: 1.5:1.0

Actual:

<TABLE>
<S>                                                           <C>
A.   Value of Line I.D. (Quick Assets)                        $________

B.   Value of Line I.G. (Current Liabilities)                 $________

C.   Aggregate value of all amounts received or invoiced by
     Borrower in advance of performance under contracts and
     not yet recognized as revenue                            $________

D.   Line B minus line C                                      $________

E.   Adjusted Quick Ratio (line A divided by line C)           ________
</TABLE>

Is line E equal to or greater than 1.5:1:0?

_____ No, not in compliance   _____ Yes, in compliance


                   Schedule 1 to Compliance Certificate Page 1

<PAGE>

                                    EXHIBIT D

                              BORROWING RESOLUTIONS


                                Exhibit D Page 1

<PAGE>

                                    EXHIBIT E

                             PERFECTION CERTIFICATE

TO: SILICON VALLEY BANK

     The undersigned, the of COMMVAULT SYSTEMS, INC. (the "Company"), hereby
represents and warrants to you on behalf of the Company as follows:

     1. NAMES OF THE COMPANY

     a. The name of the Company as it appears in its current Articles or
Certificate of Incorporation is:

     b. The federal employer identification number of the Company is:

     c. The Company is formed under the laws of the State Delaware.

     d. The organizational identification number of the Company is:

     e. The Company transacts business in the following jurisdictions (list
jurisdictions other than jurisdiction of formation):

     f. The Company is duly qualified to transact business as a foreign entity
in the following jurisdictions (list jurisdictions other than jurisdiction of
formation):

     g. The following is a list of all other names (including fictitious names,
d/b/a's, trade names or similar names) currently used by the Company or used
within the past five years:

<TABLE>
<CAPTION>
Name   Period of Use
----   -------------
<S>    <C>

</TABLE>


                                Exhibit E Page 1

<PAGE>

     h. The following are the names of all entities which have been merged into
the Company during the past five years:

<TABLE>
<CAPTION>
Name of Merged Entity   Year of Merger
---------------------   --------------
<S>                     <C>

</TABLE>

     i. The following are the names and addresses of all entities from whom the
Company has acquired any personal property in a transaction not in the ordinary
course of business during the past five years, together with the date of such
acquisition and the type of personal property acquired (e.g., equipment,
inventory, etc.):

<TABLE>
<CAPTION>
Name   Address   Date of Acquisition   Type of Property
----   -------   -------------------   ----------------
<S>    <C>       <C>                   <C>

</TABLE>

     2. PARENT/SUBSIDIARIES OF THE COMPANY.

     a. The legal name of each subsidiary and parent of the Company is as
follows. (A "parent" is an entity owning more than 50% of the outstanding
capital stock of the Company. A "subsidiary" is an entity, 50% or more of the
outstanding capital stock of which is owned by the Company.)

<TABLE>
<CAPTION>
Name     Subsidiary/Parent    Fed. Employer ID No.
----     -----------------    --------------------
<S>    <C>                    <C>
       Sub [ ]   Parent [ ]
       Sub [ ]   Parent [ ]
       Sub [ ]   Parent [ ]
</TABLE>

     b. The following is a list of the respective jurisdictions and dates of
formation of the parent and each subsidiary of the Company:

<TABLE>
<CAPTION>
Name   Jurisdiction   Date of Formation
----   ------------   -----------------
<S>    <C>            <C>

</TABLE>

     c. The following is a list of all other names (including fictitious names,
d/b/a's, trade names or similar names) currently used by each subsidiary of the
Company or used during the past five years:

<TABLE>
<CAPTION>
Name   Subsidiary
----   ----------
<S>    <C>

</TABLE>


                                Exhibit E Page 2

<PAGE>


     d. The following are the names of all corporations which have been merged
into a subsidiary of the Company during the five years:

<TABLE>
<CAPTION>
Name   Subsidiary
----   ----------
<S>    <C>

</TABLE>

     e. The following are the names and addresses of all entities from whom each
subsidiary of the Company has acquired any personal property in a transaction
not in the ordinary course of business during the past five years, together with
the date of such acquisition and the type of personal property acquired (e.g.,
equipment, inventory, etc.):

<TABLE>
<CAPTION>
                    Date of     Type of
Name   Address   Acquisition   Property   Subsidiary
----   -------   -----------   --------   ----------
<S>    <C>       <C>           <C>        <C>

</TABLE>

     LOCATIONS OF Company AND ITS SUBSIDIARIES

     a. The chief executive offices of the Company and its subsidiaries are
presently located at the following addresses:

<TABLE>
<CAPTION>
Complete Street and Mailing Address,
   including County and Zip Code       Company/Subsidiary
------------------------------------   ------------------
<S>                                    <C>
                                         Company [ ] OR
                                         Name of Sub

                                         Company [ ] OR
                                         Name of Sub

                                         Company [ ] OR
                                         Name of Sub

                                         Company [ ] OR
                                         Name of Sub
</TABLE>

     b. The Company's books and records and those of its subsidiaries are
located at the following additional addresses (if different from the above):


                                Exhibit E Page 3

<PAGE>

<TABLE>
<CAPTION>
Complete Street and Mailing Address,
   including County and Zip Code       Company/Subsidiary
------------------------------------   ------------------
<S>                                    <C>
                                         Company [ ] OR
                                         Name of Sub

                                         Company [ ] OR
                                         Name of Sub

                                         Company [ ] OR
                                         Name of Sub

                                         Company [ ] OR
                                         Name of Sub
</TABLE>

     c. The following are all the locations where the Company and its
subsidiaries own, lease, or occupy any real property:

<TABLE>
<CAPTION>
Complete Street and Mailing Address,
   including County and Zip Code       Company/Subsidiary
------------------------------------   ------------------
<S>                                    <C>
                                         Company [ ] OR
                                         Name of Sub

                                         Company [ ] OR
                                         Name of Sub

                                         Company [ ] OR
                                         Name of Sub

                                         Company [ ] OR
                                         Name of Sub
</TABLE>

     d. The following are all of the locations where the Company and its
subsidiaries maintain any inventory, equipment, or other property:

<TABLE>
<CAPTION>
Complete Address                       Company/Subsidiary
----------------                       ------------------
<S>                                    <C>
                                         Company [ ] OR
                                         Name of Sub

                                         Company [ ] OR
                                         Name of Sub

                                         Company [ ] OR
                                         Name of Sub

                                         Company [ ] OR
                                         Name of Sub
</TABLE>


                                Exhibit E Page 4

<PAGE>

     e. The following are the names and addresses of all warehousemen, bailees,
or other third parties who have possession of any of the Company's inventory or
equipment or any of the inventory or equipment of its subsidiaries:

<TABLE>
<CAPTION>
       Complete Street and Mailing Address,
Name      including County and Zip Code       Company/Subsidiary
----   ------------------------------------   ------------------
<S>    <C>                                    <C>
                                                Company [ ] OR
                                                Name of Sub

                                                Company [ ] OR
                                                Name of Sub

                                                Company [ ] OR
                                                Name of Sub

                                                Company [ ] OR
                                                Name of Sub
</TABLE>

     4. SPECIAL TYPES OF COLLATERAL

     a. The Company and its subsidiaries own the following kinds of assets. (If
the answer is "Yes" to any of the following questions, please attach a schedule
describing each such asset owned by the Company or its subsidiaries and
identifying which party owns the asset.)

<TABLE>
<S>                                                                              <C>
Copyrights or copyright applications registered with the U.S. Copyright Office   Yes [ ]   No [ ]

Software registered with the U.S. Copyright Office                               Yes [ ]   No [ ]

Software not registered with the U.S. Copyright Office                           Yes [ ]   No [ ]

Patents and patent applications                                                  Yes [ ]   No [ ]
Trademarks or trademark applications (including any service marks,
   collective marks and certification marks)                                     Yes [ ]   No [ ]

Licenses to use trademarks, patents and copyrights of others                     Yes [ ]   No [ ]

Licenses, permits (including environmental), authorizations, or
   certifications issued by federal, state, or local governments issued
   to the Company and/or its subsidiaries or with respect to their assets,
   properties, or businesses                                                     Yes [ ]   No [ ]

Stocks, bonds or other securities                                                Yes [ ]   No [ ]

Promissory notes, or other instruments or evidence of indebtedness               Yes [ ]   No [ ]
Leases of equipment, security agreements naming such person as secured party
   or other chattel paper                                                        Yes [ ]   No [ ]

Aircraft                                                                         Yes [ ]   No [ ]

Vessels, Boats or Ships                                                          Yes [ ]   No [ ]

Railroad Rolling Stock                                                           Yes [ ]   No [ ]

Motor Vehicles                                                                   Yes [ ]   No [ ]
</TABLE>


                                Exhibit E Page 5

<PAGE>

     b. The following is a list of material contracts to which the Company is a
party (include any equipment leases) or in which the Company has an interest
(including whether such contract has a nonassignability provision which would
require the other party's or another person's consent to the granting of a
security interest in such contract):

                             Nonassignability Clause

<TABLE>
<CAPTION>
                                                                Consent
Other Party    Title/Date   Asset Sale   Security              Obtained
to Contract   of Contract      (Y/N)       (Y/N)    Interest     (Y/N)
-----------   -----------   ----------   --------   --------   --------
<S>           <C>           <C>          <C>        <C>        <C>

</TABLE>

     c. The following are all banks or savings institutions at which the Company
and its subsidiaries maintain deposit accounts:

<TABLE>
<CAPTION>
Bank Name   Account Number   Branch Address   Company/Subsidiary
---------   --------------   --------------   ------------------
<S>         <C>              <C>              <C>
                                                Company [ ] OR
                                                Name of Sub

                                                Company [ ] OR
                                                Name of Sub

                                                Company [ ] OR
                                                Name of Sub

                                                Company [ ] OR
                                                Name of Sub
</TABLE>

     d. Does or is it contemplated that the Company will regularly receive
letters of credit from customers or other third parties to secure payments of
sums owed to the Company? The following is a list of letters of credit naming
the Company as "beneficiary" thereunder:

<TABLE>
<CAPTION>
LC Number   Name of LC Issuer   LC Applicant
---------   -----------------   ------------
<S>         <C>                 <C>

</TABLE>


                                Exhibit E Page 6

<PAGE>

     5.   ENCUMBRANCES

     The Company's and its subsidiaries' property are subject to the following
liens or encumbrances:

<TABLE>
<CAPTION>
Name of Holder of
Lien/Encumbrance    Description of Property Encumbered   Company/Subsidiary
-----------------   ----------------------------------   ------------------
<S>                 <C>                                  <C>
                                                           Company [ ] OR
                                                           Name of Sub

                                                           Company [ ] OR
                                                           Name of Sub

                                                           Company [ ] OR
                                                           Name of Sub
</TABLE>

     6.   LITIGATION

     a. The following is a complete list of pending and threatened litigation or
claims involving amounts claimed against the Company in an indefinite amount or
in excess of $50,000 in each case:

     b. The following are the only claims which the Company has against others
(other than claims on accounts receivable), which the Company is asserting or
intends to assert, and in which the potential recovery exceeds $50,000:

     7.   TAXES

     The following tax assessments are currently outstanding and unpaid:

<TABLE>
<CAPTION>
Assessing Authority   Amount and Description
-------------------   ----------------------
<S>                   <C>

</TABLE>

     8.   INSURANCE BROKER

     The following broker handles the Company's property insurance:

<TABLE>
<CAPTION>
BROKER   CONTACT   TELEPHONE   FAX   EMAIL
------   -------   ---------   ---   -----
<S>      <C>       <C>         <C>   <C>

</TABLE>

     9.   OFFICERS OF THE COMPANY AND ITS SUBSIDIARIES

     The following are the names and titles of the officers of the Company and
its subsidiaries.

<TABLE>
<CAPTION>
Office/Title   Name of Officer   Company/Subsidiary
------------   ---------------   ------------------
<S>            <C>               <C>
                                   Company [ ] OR
                                   Name of Sub
</TABLE>


                                Exhibit E Page 7

<PAGE>

<TABLE>
<S>            <C>               <C>
                                   Company [ ] OR
                                   Name of Sub

                                   Company [ ] OR
                                   Name of Sub

                                   Company [ ] OR
                                   Name of Sub
</TABLE>

     10.  IRS FORM W9

     The Company's completed and executed IRS Form W9 is attached hereto as
Exhibit A.

     11.  LEGAL COUNSEL

     The following attorney will represent the Company in connection with the
loan documents:

<TABLE>
<CAPTION>
ATTORNEY   LAW FIRM   TELEPHONE   FAX   EMAIL
--------   --------   ---------   ---   -----
<S>        <C>        <C>         <C>   <C>

</TABLE>

     The Company agrees to advise you of any change or modification to any of
the foregoing information or any supplemental information provided on any
continuation pages attached hereto, and, until such notice is received by you,
you shall be entitled to rely upon such information and presume it is correct.
The Company acknowledges that your acceptance of this Perfection Certificate and
any continuation pages does not imply any commitment on your part to enter into
a loan transaction with the Company, and that any such commitment may only be
made by an express written loan commitment, signed by one of your authorized
officers.

Date:
      -------------------------------

                                        COMMVAULT SYSTEMS, INC.


                                        By:
                                            ------------------------------------
                                        Its:
                                             -----------------------------------
                                        Email:
                                               ---------------------------------
                                        Phone:
                                               ---------------------------------
                                        Fax:
                                             -----------------------------------


                                Exhibit E Page 8

<PAGE>

                                    EXHIBIT F

                            ACCOUNT CONTROL AGREEMENT


                                Exhibit F Page 1
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.14
<SEQUENCE>3
<FILENAME>y17249a2exv10w14.txt
<DESCRIPTION>EX-10.14: PURCHASE AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.14


                               PURCHASE AGREEMENT

                  THIS PURCHASE AGREEMENT (this "AGREEMENT"), dated April 14,
2000, is by and between Microsoft Corporation, a Washington corporation
("MICROSOFT"), and the other persons listed on the signature page hereto
(collectively with Microsoft, the "PURCHASERS"), and Comm Vault Systems, Inc., a
Delaware corporation (the "COMPANY").

                  WHEREAS, the Company and Microsoft are entering into an
arrangement whereby the Company may develop certain software for Microsoft and
Microsoft will invest in the Company;

                  WHEREAS, each of the other Purchasers desire to invest in the
Company; and

                  WHEREAS, the Company desires to issue and sell to the
Purchasers an aggregate of 4,361,555 shares of its Series AA Preferred Stock
(the "SHARES") and the Purchasers desire to purchase the Shares on the terms and
subject to the conditions described herein.

                  NOW, THEREFORE, in consideration of the premises and of the
mutual covenants, agreements and warranties herein contained, the parties hereto
agree as follows:

                  1. DEFINITIONS. Capitalized terms that are not defined in the
text of this Agreement have the meanings set forth below:

         "Affiliate" shall mean, with respect to any specified Person, any other
Person which, directly or indirectly, owns or controls, is under common
ownership or control with, or is owned or controlled by, such specified Person.
For purposes of this definition, a Person shall be deemed to control another
Person if the first Person owns or holds more than 50% of the voting power of
the second Person.

         "Amended Certificate" shall mean the Amended and Restated Certificate
of Incorporation of the Company in the form of Exhibit 2.

         "Board of Directors" shall mean the board of directors of the Company.

         "Engineering and Marketing Agreement" shall mean an Engineering and
Marketing Agreement to be entered into between Microsoft and Company as of the
Closing.

         "Governmental Authority" shall mean the government of the United States
or any foreign country or any state or political subdivision thereof and any
entity, body or authority exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government.

<PAGE>

         "Initial Public Offering" shall mean the initial public offering or
sale of common stock by the Company through underwriters or otherwise, that
requires registration, qualification or the filing of a prospectus under
applicable securities laws.

         "Knowledge" means the actual knowledge of N. Robert Hammer, Louis
Miceli, Larry Cormier or Al Bunte.

         "Law" shall mean any law, statute, regulation, ordinance, rule, order,
decree, judgment, consent decree, settlement agreement or governmental
requirement enacted, promulgated, entered into, agreed or imposed by any
Governmental Authority.

         "Lien" shall mean any mortgage, lien (except for any lien for taxes not
yet due and payable), charge, restriction, pledge, security interest, option,
lease or sublease, claim, right of any third party, easement, encroachment or
encumbrance.

         "Material Adverse Effect" shall mean an effect on the business,
operations, assets, liabilities, results of operations, cash flows or condition
(financial or otherwise) of the Company which is material and adverse.

         "Non-Preemptive Shares" shall mean any voting shares of the capital
stock of the Company issued, sold, granted or conveyed (i) in connection with
any acquisition of all or a portion of any Person or a merger or combination
with any Person duly authorized by the Board of Directors, (ii) to any current
or new director, officer, employee or consultant of the Company pursuant to any
plan or arrangement, now or hereafter existing, duly authorized by the Board of
Directors or (iii) pursuant to any of the items listed on Schedule B.

         "Person" shall mean any individual, corporation, proprietorship, firm,
partnership, limited partnership, trust, association or other entity.

         "Preferred Stock" shall mean the Company's issued and outstanding
Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock,
Series D Preferred Stock and Series E Preferred Stock.

         "Registration Rights Agreement" shall mean a Registration Rights
Agreement to be entered into between Purchasers and the Company as of the
Closing in the form of Exhibit 1.

         "Related Agreements" shall mean, (i) with respect to the Company and
Microsoft, the Engineering and Marketing Agreement, the Registration Rights
Agreements and the Warrant and (ii) with respect to the other Purchasers, only
the Registration Rights Agreement.

         "Securities Act" shall mean the Securities Act of 1933, as amended.

         "Stock Plan" shall mean the Company's stock plan, as described on
SCHEDULE B.

         "Subsidiaries" shall mean the Persons set forth on SCHEDULE A.

<PAGE>

         "Warrant" shall mean a warrant to be issued to Microsoft to purchase
shares of common stock of the Company in connection the conditions specified in
the Engineering and Marketing Agreement.

                  2. PURCHASE AND SALE OF SHARES.

         (a) PURCHASE PRICE. Subject to the terms and conditions set forth in
this Agreement, at the Closing (as hereinafter defined), the Purchasers shall
purchase, and the Company shall issue and sell to the Purchasers the Shares for
an aggregate purchase price (the "Purchase Price") of $25,000,002. The number of
Shares being sold to each Purchaser and the portion of the Purchase Price
attributable thereto is set forth under such Purchaser's name on the signature
page hereto.

         (b) CLOSING. The closing (the "Closing") of the transactions described
herein shall occur on April 14, 2000, or such other date as agreed upon by the
Purchasers and the Company. At the Closing, the Purchasers shall pay the Company
the Purchase Price in cash by wire transfer of immediately available funds to an
account designated by the Company at least three business days before the
Closing and the Company shall deliver to each Purchaser a certificate
representing the Shares purchased by such Purchaser.

                  3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company
hereby represents and warrants to each of the Purchasers:

         (a) DUE INCORPORATION; SUBSIDIARIES. Each of the Company and the
Subsidiaries is duly incorporated, validly existing and in good standing under
the laws of its jurisdiction of incorporation, with all requisite power and
authority to own, lease and operate its properties and to carry on its business
as they are now being owned, leased, operated and conducted. Each of the Company
and the Subsidiaries is licensed or qualified to do business and is in good
standing as a foreign corporation in each jurisdiction where the nature of the
properties owned, leased or operated by it and the businesses transacted by it
require such licensing or qualification, except where the failure to be so
licensed or qualified would not individually or in the aggregate have a Material
Adverse Effect. Except as set forth on SCHEDULE A, the Company has no direct or
indirect subsidiaries, either wholly or partially owned, and the Company does
not hold any direct or indirect economic, voting or management interest in any
Person or directly or indirectly own any security issued by any Person. Each
Subsidiary is wholly owned by the Company.

         (b) DUE AUTHORIZATION. The Company has full power and authority to
enter into this Agreement and its Related Agreements and to consummate the
transactions contemplated hereby and thereby. The execution, delivery and
performance by the Company of this Agreement and its Related Agreements have
been duly and validly approved by the board of directors of the Company and no
other actions or proceedings on the part of the Company are necessary to
authorize this Agreement, the Related Agreements and the transactions
contemplated hereby and thereby. The Company has duly and validly executed and
delivered this Agreement and has duly and validly executed and delivered (or
prior to or at the Closing will duly and validly execute and deliver) its
Related Agreements. This Agreement constitutes legal, valid and binding
obligations of the Company and the Company's Related Agreements upon execution
and delivery by the Company will constitute legal, valid and binding obligations
of the Company, in

<PAGE>

each case, enforceable in accordance with their respective terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, moratorium,
reorganization or similar laws in effect which affect the enforcement of
creditors' rights generally and by equitable limitations on the availability of
specific remedies.

         (c) CONSENTS AND APPROVALS; AUTHORITY RELATIVE TO THIS AGREEMENT.

                  (i) No consent, authorization or approval of, filing or
registration with, or cooperation from, any Governmental Authority or any other
Person not a party to this Agreement that has not been received by the Company
is necessary in connection with the execution, delivery and performance by the
Company of this Agreement and the execution, delivery and performance by the
Company of Related Agreements or the consummation of the transactions
contemplated hereby or thereby.

                  (ii) The execution, delivery and performance by Company of
this Agreement and its Related Agreements do not and will not (1) violate any
Law; (2) violate or conflict with, result in a breach or termination of,
constitute a default or give any third party any additional right (including a
termination right) under, permit cancellation of, result in the creation of any
Lien upon any of the assets or properties of the Company under, or result in or
constitute a circumstance which, with or without notice or lapse of time or
both, would constitute any of the foregoing under, any contract to which the
Company, is a party or by which the Company or any of its assets or properties
are bound; (3) permit the acceleration of the maturity of any indebtedness of
the Company or indebtedness secured by its assets or properties; or (4) violate
or conflict with any provision of any of the Certificate of Incorporation,
charter or by-laws of the Company.

         (d) CAPITALIZATION.

                  (i) The authorized capital stock of the Company is as
described in the Amended Certificate. All of the outstanding capital stock of
the Company and each Subsidiary (i) is validly issued, fully paid and
nonassessable and (ii) is free of preemptive rights (except as provided in the
Amended Certificate or this Agreement). When issued, the Shares, the Conversion
Shares and the Warrant Shares will be validly issued, fully paid and
nonassessable.

                  (ii) Except as set forth above or on SCHEDULE B, there are no
shares of capital stock or other securities (whether or not such securities have
voting rights) of the Company issued or outstanding or any subscriptions,
options, warrants, calls, rights, convertible securities or other agreements or
commitments of any character obligating the Company to issue, transfer or sell,
or cause the issuance, transfer or sale of, any shares of its capital stock or
other securities (whether or not such securities have voting rights). Except as
set forth in SCHEDULE B, there are no outstanding contractual obligations of the
Company which relate to the purchase, sale, issuance, repurchase, redemption,
acquisition, transfer, disposition, holding or voting of any shares of its
capital stock or other securities.

         (e) LITIGATION.

                  (i) There is no claim, action, suit, investigation or
proceeding ("Litigation") pending or, to the Knowledge of the Company,
threatened against the Company or any

<PAGE>

Subsidiary, or involving any of its properties or assets by or before any court,
arbitrator or other Governmental Entity which (1) in any manner challenges or
seeks to prevent, enjoin, alter or materially delay the transactions
contemplated by this Agreement or (2) if resolved adversely to the Company or
any Subsidiary, would reasonably be expected to have a Material Adverse Effect.

                  (ii) Neither the Company nor any Subsidiary is in default
under or in breach of any order, judgment or decree of any court, arbitrator or
other Governmental Authority, except for defaults or breaches, which
individually or in the aggregate would not reasonably be expected to have a
Material Adverse Effect.

         (f) COMPLIANCE WITH LAWS. The Company and each Subsidiary are in
compliance in all material respects with allapplicable Laws.

         (g) OFFERING OF SHARES. Neither the Company nor any Person acting on
its behalf has taken or will take any action (including, without limitation, any
offering of any securities of the Company under circumstances which would
require, under the Securities Act, the integration of such offering with the
offering and sale of the Shares) which might reasonably be expected to subject
the offering, issuance or sale of the Shares to the registration requirements of
the Securities Act.

         (h) BROKERS. No broker, finder or investment banker is entitled to any
brokerage, finder's or other fee or commission from any party in connection with
the transactions contemplated by this Agreement based upon arrangements made by
or on behalf of the Company.

                  4. REPRESENTATIONS AND WARRANTIES OF PURCHASERS. Each of the
Purchasers severally but not jointly hereby represents and warrants to the
Company as follows:

         (a) DUE INCORPORATION. Each Purchaser that is not an individual is duly
organized, validly existing and in good standing under the laws of its
jurisdiction of organization, with all requisite power and authority to own,
lease and operate its properties and to carry on its business as they are now
being owned, leased, operated and conducted.

         (b) DUE AUTHORIZATION. Each Purchaser that is not an individual has
full power and authority to enter into this Agreement and its Related Agreements
and to consummate the transactions contemplated hereby and thereby. The
execution, delivery and performance by such Purchaser of this Agreement and its
Related Agreements have been duly and validly approved by its governing body
empowered to authorize the transactions contemplated by this Agreement and its
Related Agreements and no other actions or proceedings on the part of such
Purchaser are necessary to authorize this Agreement, its Related Agreements and
the transactions contemplated hereby and thereby.

         (c) DUE EXECUTION; BINDING EFFECT. Such Purchaser has validly executed
and delivered this Agreement and has duly and validly executed and delivered (or
prior to or at the Closing will duly and validly execute and deliver) its
Related Agreements. This Agreement constitutes legal, valid and binding
obligations of such Purchaser and such Purchaser's Related Agreements upon
execution and delivery by such Purchaser (as applicable) will constitute legal,

<PAGE>

valid and binding obligations of such Purchaser, in each case, enforceable in
accordance with their respective terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, moratorium, reorganization or
similar laws in effect which affect the enforcement of creditors' rights
generally and by equitable limitations on the availability of specific remedies.

         (d) CONSENTS AND APPROVALS; AUTHORITY RELATIVE TO THIS AGREEMENT.

                  (i) No consent, authorization or approval of, filing or
registration with, or cooperation from, any Governmental Authority or any other
Person not a party to this Agreement is necessary in connection with the
execution, delivery and performance by such Purchaser of this Agreement and its
Related Agreements and the consummation of the transactions contemplated hereby
and thereby.

                  (ii) The execution, delivery and performance by such Purchaser
of this Agreement and its Related Agreements do not and will not (1) violate any
Law; (2) violate or conflict with, result in a breach or termination of,
constitute a default or give any third party any additional right (including a
termination right) under, permit cancellation of, result in the creation of any
Lien upon any of the assets or properties of such Purchaser under, or result in
or constitute a circumstance which, with or without notice or lapse of time or
both, would constitute any of the foregoing under, any contract to which
Purchaser is a party or by which such Purchaser or any of its assets or
properties are bound; (3) permit the acceleration of the maturity of any
indebtedness of such Purchaser or indebtedness secured by its assets or
properties; or (4) for each Purchaser that is not an individual, violate or
conflict with any provision of such Purchaser's organizational documents.

         (e) BROKERS. No broker, lender or investment banker is entitled to any
brokerage, lender's or other fee or commission from any party in connection with
the transactions contemplated by this Agreement based on arrangements made by or
on behalf of such Purchaser.

         (f) PURCHASE FOR INVESTMENT. Such Purchaser is purchasing the Shares
hereunder for investment without any intent of the distribution thereof within
the meaning of the Securities Act.

         (g) ACCREDITED INVESTOR. Such Purchaser is an "accredited investor"
within the meaning of Regulation 501(a) under the Securities Act and is able to
bear the economic risk of acquisition of the Shares, can afford to sustain a
total loss on such investment, and has such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and
risk of the proposed investment. Such Purchaser has been furnished the
opportunity to ask questions of and receive answers from representatives of the
Company concerning the business and financial affairs of the Company.

                  5. COVENANTS.

         (a) CONDUCT OF BUSINESS BY THE COMPANY PENDING THE CLOSING. The Company
shall, and shall cause each of its Subsidiaries to, during the period from the
date of this Agreement and continuing until the earlier of the termination of
this Agreement or the Closing, unless the Purchasers otherwise agree in writing,
(1) conduct its business only in the ordinary course and

<PAGE>

consistent with past practice; (2) maintain its books and records in the usual,
regular and ordinary manner, on a basis consistent with past practice; and (3)
comply in all material respects with applicable Laws. Except as expressly
contemplated by this Agreement between the date of this Agreement and the
Closing, the Company shall not do any of the following without the prior written
consent of the Purchasers, which consent shall not be unreasonably withheld or
delayed:

                  (i) change any of its methods of accounting or accounting
practice, other than such changes required by GAAP;

                  (ii) (1) repurchase, redeem or otherwise acquire or exchange
any share of its common stock or other equity interests; (2) except for
issuances of its common stock pursuant to the exercise of options to purchase
common stock outstanding on the date hereof pursuant to any of the arrangements
listed on SCHEDULE B or an increase determined in good faith by the Company in
the amount of common stock to be issued under the Stock Plan, issue or sell any
additional shares of the capital stock of, or other equity interests in, the
Company, or securities convertible into or exchangeable for such shares or other
equity interests, or issue or grant any subscription rights, options, warrants
or other rights of any character relating to shares of such capital stock, such
other equity interests or such securities; or (3) declare, set aside, make or
pay any dividend, or make any distribution, in respect of any of its shares of
capital stock other than as required with respect to the Preferred Stock;

                  (iii) amend its charter or by-laws or other organizational
documents except with respect to the filing of the Amended Certificate;

                  (iv) take any action that is reasonably likely to result in
any of the representations and warranties set forth in Section 3 becoming false
or inaccurate in any material respect as of the Closing; or

                  (v) agree to take any of the actions restricted by this
Section 5(a).

         (b) BOARD REPRESENTATION; OBSERVERS. Microsoft shall be entitled to
designate for election to the Board of Directors one director (the "MICROSOFT
DIRECTOR") and, in addition, designate one non-voting observer (the "NON-VOTING
OBSERVER") to attend and participate in (but not vote at) all meetings of the
Board of Directors. The Company will take all action necessary for the Microsoft
Director to be elected to the Board of Directors as of the Closing. In
connection with any annual meeting of stockholders of the Company at which the
term of the Microsoft Director is to expire, the Company will take all necessary
action to cause the Microsoft Director to be nominated and use its reasonable
best efforts to cause the Microsoft Director to be elected to the Board of
Directors. In the event a vacancy shall exist in the office of the Microsoft
Director, Microsoft shall be entitled to designate a successor and the Board of
Directors shall elect such successor and, in connection with the meeting of
stockholders of the Company next following such election, nominate such
successor for election as director by the stockholders and use its reasonable
best efforts to cause the successor to be elected. The Non-Voting Observer shall
have the same access to information concerning the business and operations of
the Company and at the same time as the directors of the Company, and shall be
entitled to participate in discussions and consult with the Board of Directors
without voting. The provision of any such information to the Non-Voting Observer
shall be subject to the receipt by

<PAGE>

the Company of a confidentiality agreement covering such information and
reasonably acceptable to the Company and the Non-Voting Observer. Microsoft's
right to nominate the Microsoft Director and the Non-Voting Observer and the
Company's obligation to take any action to cause the Microsoft Director to be
elected to the Board of Director shall terminate as of the Initial Public
Offering. In addition, the term of the Microsoft Director and all rights of the
Microsoft Director and the Non-Voting Observer, including the rights to observe
the books and records of the Company as provided above, shall expire as of such
time. Microsoft agrees that the information provided by the Company, officers,
directors and employees pursuant to this Section 5(b) will be used solely for
the purpose of evaluating Microsoft's investment in the Shares, the Conversion
Shares and the Warrant Shares, and that such information will be kept strictly
confidential by Microsoft; PROVIDED that the foregoing obligation of Microsoft
shall not (a) relate to any information that (i) is or becomes generally
available other than as a result of unauthorized disclosure by Microsoft or by
persons to whom Microsoft has made such information available or (ii) is or
becomes available to Microsoft on a non-confidential basis from a third party
that is not, to Microsoft's knowledge, bound by any other confidentiality
agreement with the Company or its subsidiaries, or (b) prohibit disclosure of
any information if required by Law or the rules of any stock exchange. Microsoft
hereby acknowledges that it is aware that the United States securities laws
prohibit any person who has received from an issuer or any Affiliate thereof any
material, non-public information from purchasing or selling securities of such
issuer or from communicating such information to any other person under
circumstances in which it is reasonably foreseeable that such person is likely
to purchase or sell such securities. Microsoft acknowledges and agrees that
there would be no adequate remedy at Law if Microsoft fails to perform its
obligations under this Section 5(b) and accordingly agrees that the Company, in
addition to any other remedy to which it may be entitled at Law or in equity,
shall be entitled to compel specific performance of the obligations of Microsoft
under this Section 5(b).

         (c) AMENDED CERTIFICATE. The Company shall, prior to or concurrently
with the Closing, cause the Amended Certificate to be filed with the Secretary
of State of the State of Delaware.

         (d) COOPERATION. Each of the Purchasers and the Company agrees to use
its reasonable best efforts to take, or cause to be taken, all such further
actions as shall be necessary to make effective and consummate the transactions
contemplated by this Agreement.

         (e) RESERVE SHARES. The Company will at all times reserve and keep
available, solely for issuance and delivery upon conversion of the Shares, the
number of shares of common stock from time to time issuable upon conversion of
all Shares at the time outstanding (the "CONVERSION SHARES") and any shares to
be issued pursuant to the Warrant (the "WARRANT SHARES"). All Conversion Shares
and Warrant Shares shall be duly authorized and, when issued upon such
conversion or exercise, shall be validly issued, fully paid and nonassessable.

         (f) RESTRICTIONS ON TRANSFER. The Purchasers will not, prior to the
earlier of (a) December 31, 2004 or (b) the time of the closing of the Initial
Public Offering, sell, transfer, assign, convey, gift, mortgage, pledge,
encumber, hypothecate, or otherwise dispose of, directly or indirectly,
("TRANSFER") any of the Shares or any Conversion Shares except for (i) Transfers
between and among the Purchasers and their Affiliates provided such Transfer is
in accordance

<PAGE>

with the transfer restrictions applicable to the Shares or the Conversion Shares
under federal and state securities laws and the Affiliate transferee agrees to
be bound by the restrictions applicable to such Shares or Conversion Shares,
including without limitation the agreements set forth in this Section 5(f), and
(ii) Transfers (x) pursuant to a bona fide tender or exchange offer made
pursuant to a merger or other agreement approved by the Board of Directors to
acquire securities of the Company; provided, that the Purchasers may not tender
or exchange in such offer unless at least 50% of the outstanding voting
securities of the Company have previously been tendered or exchanged by other
holders of the Company's securities in connection therewith, (y) pursuant to any
cash merger, or other business combination transaction to which the Company is a
party or involved in which the common stock of the Company's stockholders is
exchanged for cash upon consummation of such merger or other business
combination or (z) agreed to in writing by the Company. Notwithstanding any
other provision of this Section 5(f), no Purchaser shall avoid the provisions of
this Section 5(f) by making one or more transfers to one or more Affiliates and
then disposing of all or any portion of such Purchaser's interest in any such
Affiliate.

         (g) PREEMPTIVE RIGHT. If at any time the Company desires to issue or
sell any shares (the "ADDITIONAL SHARES") of its capital stock that entitle the
holder thereof to voting rights (other than Non-Preemptive Shares) to any
Person, the Company shall give a written notice (the "ISSUANCE NOTICE") to the
Purchasers setting forth the proposed terms of such Additional Shares and the
quantity of Additional Shares to be issued, the issuance date and the price at
which such Additional Shares shall be issued. Each of the Purchasers shall have
the option to purchase the number of Additional Shares necessary to maintain
such Purchaser's percentage of issued and outstanding voting shares of the
Company at the time of the Issuance Notice, which option may be exercised by
giving written notice to the Company (the "RESPONSE NOTICE") within 14 days of
the Issuance Notice that contains an unconditional agreement to purchase all
(and not less than all) of the Additional Shares to which such Purchaser is
entitled to purchase. Failure by a Purchaser to give the Response Notice to the
Company within such 14-day period shall be deemed to be a rejection of such
option. At the option of the Company, within 14 days of Company's receipt of the
Response Notice or at the time of the closing of the sale of Additional Shares
to any Persons pursuant to the next sentence, the Company shall sell to such
Purchaser and such Purchaser shall purchase the Additional Shares that such
Purchaser agreed to purchase in the Response Notice, at the price and on the
terms set forth in the Issuance Notice. For a period of 270 days after any
Issuance Notice, the Company shall have the right to issue or sell to any Person
up to the number of Additional Shares specified in the Issuance Notice less the
number of Additional Shares pursuant to duly tendered Response Notices at a
price and on terms not materially less favorable to the Company than as
specified in the Issuance Notice. If the Company desires to issue or sell
Additional Shares, (i) after such 270-day period, (ii) on terms materially less
favorable to the Company than as specified in the Issuance Notice or (iii) in a
quantity greater than as specified in the previous sentence, the Company must
again comply with this Section 5(g). The rights and obligations of the parties
pursuant to this Section 5(g) shall terminate upon the closing of an Initial
Public Offering.

         (h) COMPLIANCE WITH SECURITIES LAWS. Such Purchaser understands that
the Shares, the Conversion Shares and the Warrant Shares will not be registered
under the Securities Act or applicable state securities laws and agrees not to
sell, pledge or otherwise transfer any of the Shares, Conversion Shares and the
Warrant Shares in the absence of such registration or an opinion of counsel
reasonably satisfactory to the Company that such registration is not required.

<PAGE>

Except as set forth in the Registration Rights Agreement, such Purchaser
acknowledges that the Company is not required to register the Shares, the
Conversion Shares or the Warrant Shares.

                  6. CONDITIONS.

         (a) CONDITIONS TO OBLIGATIONS OF THE PURCHASERS. The obligations of the
Purchasers to consummate the transactions contemplated hereby shall be subject
to the satisfaction or waiver at or prior to the Closing of each of the
following conditions:

                  (i) No statute, rule or regulation or order of any court or
administrative agency shall be in effect which prohibits the consummation of the
transactions contemplated hereby;

                  (ii) Each of the representations and warranties of the Company
contained in this Agreement shall be true and correct when made and as of the
Closing (except to the extent such representations and warranties are made as of
a particular date, in which case such representations and warranties shall have
been true and correct in all material respects as of such date), except for
failures to be true and correct which individually or in the aggregate would not
reasonably be expected to have a Material Adverse Effect;

                  (iii) The Company shall have performed, satisfied and complied
in all material respects with all of its covenants and agreements set forth in
this Agreement to be performed, satisfied and complied with prior to or at the
Closing;

                  (iv) The Company shall have delivered to the Purchasers an
officer's certificate certifying as to the Company's compliance with the
conditions set forth in clauses (ii) and (iii) of this Section 6(a);

                  (v) The Company shall have executed and delivered to each of
the Purchasers the Registration Rights Agreement;

                  (vi) The Amended Certificate shall have been duly filed with
the Secretary of State of the State of Delaware in accordance with the laws of
the State of Delaware and the Amended Certificate shall be in full force and
effect;

                  (vii) The Company shall have executed and delivered to
Microsoft the Engineering and Marketing Agreement;

                  (viii) The Company shall have executed and delivered to
Microsoft the Warrant;

                  (ix) The Conversion Shares and the Warrant Shares shall have
been duly authorized and reserved for issuance;

                  (x) Mayer, Brown & Platt shall have delivered an opinion in
form and substance reasonably satisfactory to Purchasers; and

<PAGE>

                  (xi) There shall not have occurred any event, circumstances,
condition, fact, effect, or other matter which has had or would reasonably be
expected to have a Material Adverse Effect.

         (b) CONDITIONS TO OBLIGATIONS OF THE COMPANY. The obligations of the
Company to consummate the transactions contemplated hereby shall be subject to
the satisfaction or waiver at or prior to the Closing of each of the following
conditions:

                  (i) No statute, rule or regulation or order of any court or
administrative agency shall be in effect which prohibits the consummation of the
transactions contemplated hereby;

                  (ii) Each of the representations and warranties of the
Purchasers contained in this Agreement shall be true and correct when made and
as of the Closing (except to the extent such representations and warranties are
made as of a particular date, in which case such representations and warranties
shall have been true and correct in all material respects as of such date),
except for failures to be true and correct which individually or in the
aggregate would not reasonably be expected to have a material adverse effect on
the Purchasers' ability to perform its obligations under this Agreement;

                  (iii) Each of the Purchasers shall have executed and delivered
to the Company its Related Agreements;

                  (iv) The Purchasers shall have performed, satisfied and
complied in all material respects with all of their covenants and agreements set
forth in this Agreement to be performed, satisfied and complied with prior to or
at the Closing Date; and

                  (v) Each of Purchasers shall have delivered to the Company a
certificate certifying as to his compliance with the conditions set forth in
clauses (ii) and (iii) of this Section 6(b).

                  7. TERMINATION. This Agreement shall be terminable:

                  (i) by the parties upon mutual written agreement;

                  (ii) by the Company, on one hand, and the Purchasers, on the
other hand, if the other party materially breaches any covenant, representation
or warranty contained herein, upon written notice to such breaching party; and

                  (iii) by the Company, on one hand, and the Purchasers, on the
other hand, if any condition precedent to any party's obligation to proceed with
the Closing is not satisfied by May 31, 2000, upon written notice to the other
party (provided that the right to terminate this Agreement shall not be
available to any party whose failure to fulfill any obligation under this
agreement had been the cause of or resulted in the failure of the Closing to
occur before such date).

Upon termination of this Agreement, all obligations of each party hereunder
shall terminate except those obligations pursuant to Sections 13, 19, 20, 21 and
22. Neither party shall have any

<PAGE>


liability to the other party upon a termination of this Agreement, unless such
termination arises under clause (ii) above.

                  8. SURVIVAL OF REPRESENTATIONS AND WARRANTIES.

         The representations and warranties of the parties contained in this
Agreement shall expire on the 18-month anniversary of the Closing. After the
expiration of such period, any claim by a party based upon any such
representation or warranty shall be of no further force and effect, except to
the extent a party has given notice to the other party of a claim for breach of
any such representation or warranty prior to the expiration of such period, in
which event any representation or warranty to which such claim relates shall
survive with respect to such claim until such claim is resolved as provided in
this Section 8. The covenants and agreements of the parties hereto contained in
this Agreement shall survive the Closing until performed in accordance with
their terms.

                  9. RESTRICTIVE LEGENDS. In addition to the restrictions set
forth in Section 5(f), no Shares, Conversion Shares or Warrant Shares may be
transferred without registration under the Securities Act and applicable state
securities laws unless counsel acceptable to the Company shall advise the
Company that such transfer may be effected without such registration. Each
certificate representing any of the foregoing shall bear legends in
substantially the following form:

         THE SECURITIES EVIDENCED BY THIS CERTIFICATE SHALL BE CONVERTIBLE INTO
         THE COMPANY'S COMMON STOCK IN THE MANNER AND ACCORDING TO THE TERMS SET
         FORTH IN THE CERTIFICATE OF INCORPORATION. THE COMPANY IS AUTHORIZED TO
         ISSUE MORE THAN ONE CLASS OR SERIES OF STOCK. AS REQUIRED UNDER
         DELAWARE LAW, THE COMPANY SHALL FURNISH TO ANY HOLDER UPON REQUEST AND
         WITHOUT CHARGE, A FULL SUMMARY STATEMENT OF THE DESIGNATIONS, VOTING
         RIGHTS, PREFERENCES, LIMITATIONS AND SPECIAL RIGHTS OF THE SHARES OF
         EACH CLASS OR SERIES AUTHORIZED TO BE ISSUED BY THE COMPANY SO FAR AS
         THEY HAVE BEEN FIXED AND DETERMINED AND THE AUTHORITY OF THE BOARD OF
         DIRECTORS TO FIX AND DETERMINE THE DESIGNATIONS, VOTING RIGHTS,
         PREFERENCES, LIMITATIONS AND SPECIAL RIGHTS OF THE CLASSES AND SERIES
         OF SECURITIES OF THE COMPANY.

         THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR UNDER
         ANY APPLICABLE STATE LAWS. THE SHARES REPRESENTED BY THIS CERTIFICATE
         HAVE BEEN ACQUIRED BY THE REGISTERED OWNER HEREOF FOR INVESTMENT AND
         NOT WITH A VIEW TO OR FOR SALE IN CONNECTION WITH ANY DISTRIBUTION
         THEREOF WITHIN THE MEANING OF THE 1933 ACT. THE SHARES MAY NOT BE SOLD,
         PLEDGED, TRANSFERRED OR ASSIGNED EXCEPT IN A TRANSACTION WHICH IS
         EXEMPT UNDER

<PAGE>

         THE PROVISIONS OF THE 1933 ACT OR ANY APPLICABLE STATE SECURITIES LAWS,
         OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR IN A TRANSACTION
         OTHERWISE IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES
         LAWS.

         THE SALE, PLEDGE, TRANSFER, ASSIGNMENT OR OTHER DISPOSITION OF THE
         SHARES REPRESENTED BY THIS CERTIFICATE IS RESTRICTED BY AND SUBJECT TO
         THE PROVISIONS OF A PURCHASE AGREEMENT DATED AS OF APRIL 14, 2000, A
         COPY OF WHICH IS AVAILABLE UPON REQUEST FOR INSPECTION AT THE OFFICE'S
         OF THE COMPANY. ANY SUCH REQUEST SHOULD BE ADDRESSED TO THE SECRETARY
         OF THE COMPANY.

                  10. SUCCESSORS AND ASSIGNS; NO THIRD PARTY BENEFICIARIES. This
Agreement shall bind and inure to the benefit of the Company and the Purchasers
and the respective successors, permitted assigns, heirs and personal
representatives of the Company and the Purchasers; PROVIDED that the Company may
not assign its rights or obligations under this Agreement to any Person without
the prior written consent of the Purchasers, and provided further that the
Purchasers may not assign their rights or obligations under this Agreement to
any Person (other than an Affiliate) without the prior written consent of the
Company. This Agreement is intended for the benefit of the parties hereto and
their respective permitted successors and assigns, and is not for the benefit
of, nor may any provision hereof be enforced by, any other person.

                  11. NOTICES. Each notice, demand, request, request for
approval, consent, approval, disapproval, designation or other communication
(each of the foregoing being referred to herein as a notice) required or desired
to be given or made under this Agreement shall be in writing (except as
otherwise provided in this Agreement), and shall be effective and deemed to have
been received (i) when delivered in person, (ii) when sent by fax with receipt
acknowledged, (iii) five days after having been mailed by certified or
registered United States mail, postage prepaid, return receipt requested, or
(iv) the next business day after having been sent by a nationally recognized
overnight mail or courier service, receipt requested. Notices shall be addressed
as set forth below:

         If to Microsoft:

                  Microsoft Corporation
                  One Microsoft Way
                  Redmond, Washington 98502
                  Attn: Chief Financial Officer
                  Facsimile: (425) 936-7329
                  with a copy to: Law and Corporate Affairs
                  Facsimile: (425) 936-7329

         If to any of the other Purchasers, at the address set forth under his
         name on the signature page.

         With a copy to:

<PAGE>

                  Preston, Gates & Ellis
                  701 5th Avenue, Suite 5000
                  Seattle, Washington 98104
                  Attn: Richard B. Dodd
                  Facsimile: (206) 623-7022

         If to the Company:

                  CommVault Systems, Inc.
                  2 Crescent Place
                  Oceanport, New Jersey 07757
                  Attn: N. Robert Hammer
                  Facsimile: (732) 870-4514

         With a copy to:

                  Mayer, Brown & Platt
                  190 S. LaSalle Street
                  Chicago, Illinois 60603
                  Attention: Philip J. Niehoff
                  Facsimile: (312) 701-7711

                  12. FURTHER ASSURANCES. At any time or from time to time after
the Closing, the Company, on the one hand, and the Purchasers, on the other
hand, agree to cooperate with each other, and at the request of the other party,
to execute and deliver any further instruments or documents and to take all such
further action as the other party may reasonably request in order to evidence or
effectuate the consummation of the transactions contemplated hereby and to
otherwise carry out the intent of the parties hereunder.

                  13. PUBLIC DISCLOSURE. Except as required by Law or the rules
of any stock exchange, no public announcement or other publicity regarding the
transactions referred to herein shall be made by any of the Purchasers or the
Company or any of their respective Affiliates, officers, directors, employees,
representatives or agents, without the prior written agreement of Purchasers and
Company, in any case, as to form, content, timing and manner of distribution or
publication; provided, however, that nothing in this Section shall prevent such
parties from (i) discussing such transactions with those Persons whose approval,
agreement or opinion, as the case may be, is required for consummation of such
particular transaction or transactions or (ii) disclosing such information about
such transactions in a registration statement or prospectus in connection with
the Initial Public Offering. Each of the parties acknowledge and agree that
there would be no adequate remedy at Law if it fails to perform its obligations
under this Section 13 and accordingly agrees that each of the other parties, in
addition to any other remedy to which it may be entitled at Law or in equity,
shall be entitled to compel specific performance of the obligations of the first
party under this Section 13.

                  14. WAIVER. No party may waive any of the terms or conditions
of this Agreement except by a duly signed writing referring to the specific
provision to be waived.

<PAGE>

                  15. ENTIRE AGREEMENT. This Agreement and the Related
Agreements constitute the entire agreement, and supersedes all other prior
agreements and understandings, both written and oral, among the parties hereto
and their affiliates with respect to the matters set forth herein.

                  16. SEVERABILITY. If any provision of this Agreement shall be
held invalid, illegal or unenforceable, the validity, legality or enforceability
of the other provisions hereof shall not be affected thereby, and there shall be
deemed substituted for the provision at issue a valid, legal and enforceable
provision as similar as possible to the provision at issue.

                  17. CAPTIONS. The Section references herein are for
convenience of reference only, do not constitute part of this Agreement and
shall not be deemed to limit or otherwise affect any of the provisions hereof.

                  18. COUNTERPARTS. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original but all of which
shall constitute one and the same instrument.

                  19. GOVERNING LAW. This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Delaware.

                  20. [INTENTIONALLY OMITTED]

                  21. WAIVER OF JURY TRIAL. THE COMPANY AND THE PURCHASERS
HEREBY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
ACTION, PROCEEDING OR LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY.

                  22. FEES AND EXPENSES. All costs and expenses incurred in
connection with this Agreement shall be paid by the party incurring such costs
or expense.

                  23. JOINT PARTICIPATION IN DRAFTING. Each party to this
Agreement has participated in the negotiation and drafting of this Agreement. As
such, the language used herein shall be deemed to be the language chosen by the
parties hereto to express their mutual intent, and no rule of strict
construction will be applied against any party to this Agreement.

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered as of the day and year first written above.

                            MICROSOFT CORPORATION

                            By: /S/ ILLEGIBLE
                               ---------------------------------------
                            Name:
                                 -------------------------------------
                            Title:
                                  ------------------------------------
                            Shares: 2,616,933
                                   -----------------------------------
                            Purchase Price: $15,000,000


                            /S/ GREG REYES
                            ------------------------------------------
                            GREG REYES
                            1901 Guadelupe Parkway
                            San Jose, CA 95131
                            Shares:  87,321
                                   -----------------------------------
                            Purchase Price: 500,000
                                            --------------------------

<PAGE>



                            THE VAN WAGONER FUNDS

                            By: /S/ GARRETT R. VAN WAGONER
                                --------------------------------------
                            Name: GARRETT R. VAN WAGONER
                                  ------------------------------------
                            Title: DIRECTOR
                                   -----------------------------------
                            345 California Street
                            Suite 2450
                            San Francisco, California 94104
                            Shares: 582,703
                            Purchase Price: $3,339,995

                            VAN WAGONER CAPITAL PARTNERS, L.P.

                            By: /S/ GARRETT R. VAN WAGONER
                                --------------------------------------
                            Name: GARRETT R. VAN WAGONER
                                  ------------------------------------
                            Title: GENERAL PARTNER
                                   -----------------------------------
                            345 California Street
                            Suite 2450
                            San Francisco, California 94104
                            Shares: 22,021
                            Purchase Price: $126,222

                            VAN WAGONER CROSSOVER FUND, LP

                            By: /S/ GARRETT R. VAN WAGONER
                                --------------------------------------
                            Name: GARRETT R. VAN WAGONER
                                  ------------------------------------
                            Title: MANAGING MEMBER GENERAL PARTNER
                                   -----------------------------------
                            345 California Street
                            Suite 2450
                            San Francisco, California 94104
                            Shares: 1,000,329
                            Purchase Price: $5,733,785

<PAGE>

                            /S/ BILL RUSHER
                             -----------------------------------------
                            BILL RUSHER
                            142 Sansome Street
                            5th Floor
                            San Francisco, CA 94104
                            Shares: 8,723
                                    ----------------------------------
                            Purchase Price: $50,000
                                            --------------------------


                            /S/ FRANK JUSKA
                            ------------------------------------------
                            FRANK JUSKA
                            142 Sansome Street
                            5th Floor
                            San Francisco, CA 94104
                            Shares: 8,723
                                    ----------------------------------
                            Purchase Price: $50,000
                                            --------------------------


                            /S/ WILL HERMAN
                            ------------------------------------------
                            WILL HERMAN
                            8 Cobblestone Place
                            Sudbury, MA 01776
                            Shares: 34,842
                                    ----------------------------------
                            Purchase Price: $200,000
                                            --------------------------

<PAGE>

                            COMMVAULT SYSTEMS, INC.

                            By: /S/ N. ROBERT HAMMER
                                --------------------------------------
                            Name: N. ROBERT HAMMER
                                  ------------------------------------
                            Title: CEO
                                   -----------------------------------

<PAGE>

                                   SCHEDULE A

                                  SUBSIDIARIES

CommVault Systems (Canada) Inc., a Canadian corporation
CommVault Systems Mexico S de RL de CV, a Mexican company
CommVault Holding Company BV, a Netherlands company
CommVault Systems Netherlands BV, a Netherlands company

<PAGE>

                                   SCHEDULE B

1.    Employment Agreement, dated as of January 20, 1999, between the Company
      and N. Robert Hammer, under which Mr. Hammer has received options to
      purchase common stock.

2.    Corporate Change of Control Agreements, between the Company and (i) Louis
      Miceli, (ii) Brian McAteer, (iii) Harry Cormier and (iv) Al Bunte.

3.    Stock Plan dated as of May 22, 1996, pursuant to which (i) the Company is
      authorized to issue options to purchase 8.7 million shares of its common
      stock and (ii) options to purchase 8.2 million shares of common stock have
      been granted.

4.    Preferred Stock holders have conversion rights, pursuant to the Amended
      Certificate, and preemptive rights pursuant to the Stockholders'
      Agreement, dated as of May 22, 1996 and amended as of July 23, 1998,
      between the Company and DLJ Merchant Banking Partners, L.P., DLJ
      International Partners C.V., DLJ Offshore Partners C.V., DLJ Merchant
      Banking Funding, Inc., DLJ Capital Corporation, Sprout Growth II L.P.,
      Sprout CEO Fund L.P. and certain other investors.

5.    A Warrant to purchase common stock was issued to DLJ Merchant Banking
      Partners, L.P. and certain of its Affiliates in connection with the Loan
      Agreement dated as of January 14, 2000, between the Company and the
      Lenders therein.

6.    Purchase Agreement, dated as of August 4, 1999, between the Company and
      Comm Vault Systems International, B.V. ("CVSI") and the shareholders of
      CVSI, pursuant to which the Company's common stock would be issued in
      consideration for the acquisition of the business of CVSI by the Company.

7.    The Company expects to consummate an acquisition of Northern Concepts
      Incorporated ("NCI"), pursuant to which the Company's common stock may be
      issued in consideration for the acquisition of the business of NCI by the
      Company.

The Company may, from time to time, issue additional shares of common stock or
options or warrants to purchase its common stock in an effort to recruit new
officers and employees.

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.15
<SEQUENCE>4
<FILENAME>y17249a2exv10w15.txt
<DESCRIPTION>EX-10.15: PURCHASE AGREEMENT
<TEXT>
<PAGE>

                                                                   Exhibit 10.15

                               PURCHASE AGREEMENT

                  THIS PURCHASE AGREEMENT (this "AGREEMENT"), dated as of
November 10, 2000, is by and between EMC Investment Corporation, a Delaware
corporation ("EMC"), and the other persons listed on the signature page hereto
(collectively with EMC, the "PURCHASERS"), and CommVault Systems, Inc., a
Delaware corporation (the "COMPANY").

                  WHEREAS, each of the Purchasers desire to invest in the
Company; and

                  WHEREAS, the Company desires to issue and sell to the
Purchasers an aggregate of 2,758,358 shares of its Series BB Preferred Stock
(the "SHARES") and the Purchasers desire to purchase the Shares on the terms and
subject to the conditions described herein.

                  NOW, THEREFORE, in consideration of the premises and of the
mutual covenants, agreements and warranties herein contained, the parties hereto
agree as follows:

                  1. DEFINITIONS. Capitalized terms that are not defined in the
text of this Agreement have the meanings set forth below:

         "Affiliate" shall mean, with respect to any specified Person, any other
Person which, directly or indirectly, owns or controls, is under common
ownership or control with, or is owned or controlled by, such specified Person.
For purposes of this definition, a Person shall be deemed to control another
Person if the first Person owns or holds more than 50% of the voting power of
the second Person.

         "Amended Certificate" shall mean the Amended and Restated Certificate
of Incorporation of the Company in the form of Exhibit 2.

         "Board of Directors" shall mean the board of directors of the Company.

         "Conversion Shares" shall have the meaning set forth in Section 5(e).

         "Governmental Authority" shall mean the government of the United States
or any foreign country or any state or political subdivision thereof and any
entity, body or authority exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government.

         "Initial Public Offering" shall mean the initial public offering or
sale of common stock by the Company through underwriters or otherwise, that
requires registration, qualification or the filing of a prospectus under
applicable securities laws.

         "Knowledge" means the actual knowledge of N. Robert Hammer, Louis
Miceli, Larry Cormier or Al Bunte.

         "Law" shall mean any law, statute, regulation, ordinance, rule, order,
decree, judgment, consent decree, settlement agreement or governmental
requirement enacted, promulgated, entered into, agreed or imposed by any
Governmental Authority.

                                                              PURCHASE AGREEMENT
<PAGE>

         "Lien" shall mean any mortgage, lien (except for any lien for taxes not
yet due and payable), charge, restriction, pledge, security interest, option,
lease or sublease, claim, right of any third party, easement, encroachment or
encumbrance.

         "Material Adverse Effect" shall mean an effect on the business,
operations, assets, liabilities, results of operations, cash flows or condition
(financial or otherwise) of the Company which is material and adverse.

         "Non-Preemptive Shares" shall mean any voting shares of the capital
stock of the Company issued, sold, granted or conveyed (i) in connection with
any acquisition of all or a portion of any Person or a merger or combination
with any Person duly authorized by the Board of Directors, (ii) to any current
or new director, officer, employee or consultant of the Company pursuant to any
plan or arrangement, now or hereafter existing, duly authorized by the Board of
Directors or (iii) pursuant to any of the items listed on SCHEDULE B.

         "Person" shall mean any individual, corporation, proprietorship, firm,
partnership, limited liability company, limited partnership, trust, association
or other entity.

         "Preferred Stock" shall mean, collectively, the Company's issued and
outstanding Series A Preferred Stock, Series B Preferred Stock, Series C
Preferred Stock, Series D Preferred Stock, Series E Preferred Stock and Series
AA Preferred Stock.

         "Registration Rights Agreement" shall mean a Registration Rights
Agreement to be entered into between Purchasers and the Company as of the
Closing in the form of Exhibit 1.

         "Related Agreements" shall mean, (i) with respect to the Company and
EMC, the Registration Rights Agreement and the Warrant and (ii) with respect to
the other Purchasers, only the Registration Rights Agreement.

         "Securities Act" shall mean the Securities Act of 1933, as amended.

         "Stock Plan" shall mean the Company's stock plan, as described on
SCHEDULE B.

         "Subsidiaries" shall mean the Persons set forth on SCHEDULE A.

         "Warrant" shall mean a warrant to be issued to EMC to purchase shares
of common stock of the Company in the form of Exhibit 3.

         "Warrant Shares" shall have the meaning set forth in Section 5(e).

2.       PURCHASE AND SALE OF SHARES.

         (a) PURCHASE PRICE. Subject to the terms and conditions set forth in
this Agreement, at the Closing (as hereinafter defined), the Purchasers shall
purchase, and the Company shall issue and sell to the Purchasers the Shares for
an aggregate purchase price (the "Purchase Price") of $33,376,131.80. The number
of Shares being sold to each Purchaser and the portion of the Purchase Price
attributable thereto is set forth under such Purchaser's name on the signature
page hereto.


                                                              PURCHASE AGREEMENT

                                      -2-

<PAGE>

         (b) CLOSING. The closing (the "Closing") of the transactions described
herein shall occur on November 10, 2000, or such other date as agreed upon by
the Purchasers and the Company. At the Closing, the Purchasers shall pay the
Company the Purchase Price in cash by wire transfer of immediately available
funds to an account designated by the Company at least two business days before
the Closing and the Company shall deliver to each Purchaser a certificate
representing the Shares purchased by such Purchaser.

                  3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company
hereby represents and warrants to each of the Purchasers:

         (a) DUE INCORPORATION; SUBSIDIARIES. Each of the Company and the
Subsidiaries is duly incorporated, validly existing and in good standing under
the laws of its jurisdiction of incorporation, with all requisite power and
authority to own, lease and operate its properties and to carry on its business
as they are now being owned, leased, operated and conducted. Each of the Company
and the Subsidiaries is licensed or qualified to do business and is in good
standing as a foreign corporation in each jurisdiction where the nature of the
properties owned, leased or operated by it and the businesses transacted by it
require such licensing or qualification, except where the failure to be so
licensed or qualified would not individually or in the aggregate have a Material
Adverse Effect. Except as set forth on SCHEDULE A, the Company has no direct or
indirect subsidiaries, either wholly or partially owned, and the Company does
not hold any direct or indirect economic, voting or management interest in any
Person or directly or indirectly own any security issued by any Person. Each
Subsidiary is wholly owned by the Company.

         (b) DUE AUTHORIZATION. The Company has full power and authority to
enter into this Agreement and its Related Agreements and to consummate the
transactions contemplated hereby and thereby. The execution, delivery and
performance by the Company of this Agreement and its Related Agreements have
been duly and validly approved by the board of directors of the Company and no
other actions or proceedings on the part of the Company are necessary to
authorize this Agreement, the Related Agreements and the transactions
contemplated hereby and thereby. The Company has duly and validly executed and
delivered this Agreement and has duly and validly executed and delivered (or
prior to or at the Closing will duly and validly execute and deliver) its
Related Agreements. This Agreement constitutes legal, valid and binding
obligations of the Company and the Company's Related Agreements upon execution
and delivery by the Company will constitute legal, valid and binding obligations
of the Company, in each case, enforceable in accordance with their respective
terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, moratorium, reorganization or similar laws in effect which affect
the enforcement of creditors' rights generally and by equitable limitations on
the availability of specific remedies.

         (c) CONSENTS AND APPROVALS; AUTHORITY RELATIVE TO THIS AGREEMENT.


                  (i) No consent, authorization or approval of, filing or
registration with, or cooperation from, any Governmental Authority or any other
Person not a party to this Agreement that has not been received by the Company
is necessary in connection with the execution, delivery and performance by the
Company of this Agreement and the execution, delivery and performance by the
Company of Related Agreements or the consummation of the transactions


                                                              PURCHASE AGREEMENT

                                      -3-

<PAGE>

contemplated hereby or thereby (including, without limitation, the offer,
issuance, sale and delivery of the Shares, the Conversion Shares and the Warrant
Shares).

                  (ii) The execution, delivery and performance by the Company of
this Agreement and its Related Agreements do not and will not (1) violate any
Law; (2) violate or conflict with, result in a breach or termination of,
constitute a default or give any third party any additional right (including a
termination right) under, permit cancellation of, result in the creation of any
Lien upon any of the assets or properties of the Company under, or result in or
constitute a circumstance which, with or without notice or lapse of time or
both, would constitute any of the foregoing under, any contract to which the
Company, is a party or by which the Company or any of its assets or properties
are bound; (3) permit the acceleration of the maturity of any indebtedness of
the Company or indebtedness secured by its assets or properties; or (4) violate
or conflict with any provision of any of the Amended Certificate or by-laws of
the Company.

         (d) CAPITALIZATION.

                  (i) The authorized capital stock of the Company is as
described in the Amended Certificate. All of the outstanding capital stock of
the Company and each Subsidiary (i) is validly issued, fully paid and
nonassessable and (ii) is free of preemptive rights (except as provided in the
Amended Certificate or this Agreement). When issued, the Shares, the Conversion
Shares and the Warrant Shares will be validly issued, fully paid and
nonassessable and will not have been issued in violation of any preemptive
rights or rights of first refusal. The authorized capital stock as described in
the Amended Certificate contains a sufficient number of shares of common stock
for issuance of the Conversion Shares and Warrant Shares.

                  (ii) Except as set forth above or on SCHEDULE B, there are no
shares of capital stock or other securities (whether or not such securities have
voting rights) of the Company issued or outstanding or any subscriptions,
options, warrants, calls, rights, convertible securities or other agreements or
commitments of any character obligating the Company to issue, transfer or sell,
or cause the issuance, transfer or sale of, any shares of its capital stock or
other securities (whether or not such securities have voting rights). Except as
set forth in SCHEDULE B, there are no outstanding contractual obligations of the
Company which relate to the purchase, sale, issuance, repurchase, redemption,
acquisition, transfer, disposition, holding or voting of any shares of its
capital stock or other securities. The maximum number of shares of common stock
that the Company has issued and would be obligated to issue as of the date
hereof pursuant to the agreements listed in paragraphs 1-8 of SCHEDULE B is
57,868,509 shares on a fully diluted basis, plus any Shares issued hereunder
(including the Warrant Shares) and the shares issuable pursuant to the warrant
listed in paragraph 9 of SCHEDULE B.

         (e) LITIGATION.

                  (i) There is no claim, action, suit, investigation or
proceeding ("LITIGATION") pending or, to the Knowledge of the Company,
threatened against the Company or any Subsidiary, or involving any of its
properties or assets by or before any court, arbitrator or other Governmental
Entity which (1) in any manner challenges or seeks to prevent, enjoin, alter or
materially delay the transactions contemplated by this Agreement or (2) if
resolved adversely to



                                                              PURCHASE AGREEMENT

                                      -4-

<PAGE>

the Company or any Subsidiary, would reasonably be expected to have a Material
Adverse Effect.

                  (ii) Neither the Company nor any Subsidiary is in default
under or in breach of any order, judgment or decree of any court, arbitrator or
other Governmental Authority, except for defaults or breaches, which
individually or in the aggregate would not reasonably be expected to have a
Material Adverse Effect.

         (f) INTELLECTUAL PROPERTY. The Company has title and ownership of, or
has license to, all patents, patent applications, trademarks, service marks,
trade names, copyrights, trade secrets and other confidential and proprietary
information (collectively, the "PROPRIETARY ASSETS") necessary to enable it to
carry on its business as now conducted and as presently proposed to be conducted
without any conflict with or infringement of the rights of others, except where
any failure to have such title, ownership or license would not have a Material
Adverse Effect. To the Knowledge of the Company, no person or entity has any
ownership right, title, interest, claim in or lien on any of the Company's
Proprietary Assets. No current or former employee or consultant of the Company
has any ownership right, title, interest, claim in or lien on any of the
Company's Proprietary Assets, other than such rights, title, interests, claims
or liens that would not have a Material Adverse Effect. The Company has not
granted and, to the Knowledge of the Company, there are not outstanding, any
options, licenses or agreements of any kind relating to any Proprietary Asset of
the Company, nor is the Company bound by or a party to any option, license or
agreement of any kind with respect to any of its Proprietary Assets. To the
Knowledge of the Company, the Company has not violated or infringed, and would
not, by conducting its business as currently proposed, violate or infringe, any
Proprietary Asset of any other person or entity except for such violations or
infringements that would not have a Material Adverse Effect. Each employee of
the Company hired after January 1, 1998 has signed an Employee Inventions and
Confidentiality Agreement in the form attached hereto as Exhibit 4.

         (g) FINANCIAL STATEMENTS. The Company has furnished to each of the
requesting Purchasers a complete and correct copy of the balance sheet of the
Company at September 30, 2000, and the statement of income for the period from
March 31, 2000 through September 30, 2000 (collectively, the "FINANCIAL
STATEMENTS"). The Financial Statements are complete and correct, are in
accordance with the books and records of the Company and present fairly in all
material respects the financial condition and results of operations of the
Company, at the dates and for the periods indicated, and have been prepared in
accordance with generally accepted accounting principles ("GAAP") consistently
applied, except that the unaudited Financial Statements may not be in accordance
with GAAP because of the absence of footnotes normally contained therein and are
subject to normal year-end adjustments which in the aggregate are not expected
to be material.

         (h) ABSENCE OF UNDISCLOSED LIABILITIES. The Company does not have any
liability (whether known or unknown and whether absolute or contingent), except
for (a) liabilities shown on the Financial Statements, (b) liabilities that have
arisen since September 30, 2000 in the ordinary course of business and (c)
contractual and other liabilities incurred in the ordinary course of business
that are not material and not required by GAAP to be reflected on a balance
sheet.


                                                              PURCHASE AGREEMENT

                                      -5-

<PAGE>

         (i) ABSENCE OF CHANGES. Since September 30, 2000, the Company has
conducted its business in the ordinary course, consistent with past practice.

         (j) CONTRACTS. The Company does not have and is not bound by any
contract, agreement, lease or commitment, other than (i) contracts for the
purchase of supplies and services or the licensing of technology that were
entered into in the ordinary course of business that do not involve more than
$250,000 per year and do not extend for more than one year, (ii) sales contracts
entered into in the ordinary course of business, (iii) the leases for the
Company's office or other space, (iv) contracts terminable at will by the
Company on no more than 30 days' notice without cost or liability to the
Company, (v) an agreement with Microsoft Corporation, dated as of April 12,
2000, or (vi) other contacts the loss of which would not have a Material Adverse
Effect. To the Knowledge of the Company, all of the contracts to which it is a
party are valid and binding and are in full force and effect as of the date of
this Agreement.

         (k) REGISTRATION RIGHTS. Other than the Registration Rights Agreement,
the registration rights agreement with the holders of the Series AA Preferred
Stock, dated April 14, 2000, the Stockholders Agreement listed in paragraph 4 of
SCHEDULE B, and the piggyback registration rights granted pursuant to the
Purchase Agreement listed in paragraph 6 of SCHEDULE B, the Company has not
granted any registration rights to any party for any of its securities.

         (l) COMPLIANCE WITH LAWS. The Company and each Subsidiary are in
compliance in all material respects with all applicable Laws. All securities
issued by the Company prior to the date hereof have been issued in transactions
exempt from the registration requirements of Section 5 of the Securities Act.

         (m) OFFERING OF SHARES. Neither the Company nor any Person acting on
its behalf has taken or will take any action (including, without limitation, any
offering of any securities of the Company under circumstances which would
require, under the Securities Act, the integration of such offering with the
offering and sale of the Shares) which might reasonably be expected to subject
the offering, issuance or sale of the Shares to the registration requirements of
the Securities Act. Subject to the continuing accuracy of the Purchasers'
representations in Section 4, the offer, sale and issuance of the Shares, the
Conversion Shares and the Warrant Shares in conformity with the terms of this
Agreement, the Amended Certificate and the Warrant constitute or will constitute
transactions exempt from the registration requirements of Section 5 of the
Securities Act.

         (n) BROKERS. No broker, finder or investment banker is entitled to any
brokerage, finder's or other fee or commission from any party in connection with
the transactions contemplated by this Agreement based upon arrangements made by
or on behalf of the Company.

                  4. REPRESENTATIONS AND WARRANTIES OF PURCHASERS. Each of the
Purchasers severally but not jointly hereby represents and warrants to the
Company as follows:

         (a) DUE INCORPORATION. Each Purchaser that is not an individual is duly
organized, validly existing and in good standing under the laws of its
jurisdiction of organization, with all



                                                              PURCHASE AGREEMENT

                                      -6-

<PAGE>

requisite power and authority to own, lease and operate its properties and to
carry on its business as they are now being owned, leased, operated and
conducted.

         (b) DUE AUTHORIZATION. Each Purchaser that is not an individual has
full power and authority to enter into this Agreement and its Related Agreements
and to consummate the transactions contemplated hereby and thereby. The
execution, delivery and performance by such Purchaser of this Agreement and its
Related Agreements have been duly and validly approved by its governing body
empowered to authorize the transactions contemplated by this Agreement and its
Related Agreements and no other actions or proceedings on the part of such
Purchaser are necessary to authorize this Agreement, its Related Agreements and
the transactions contemplated hereby and thereby.

         (c) DUE EXECUTION; BINDING EFFECT. Such Purchaser has validly executed
and delivered this Agreement and has duly and validly executed and delivered (or
prior to or at the Closing will duly and validly execute and deliver) its
Related Agreements. This Agreement constitutes legal, valid and binding
obligations of such Purchaser and such Purchaser's Related Agreements upon
execution and delivery by such Purchaser (as applicable) will constitute legal,
valid and binding obligations of such Purchaser, in each case, enforceable in
accordance with their respective terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, moratorium, reorganization or
similar laws in effect which affect the enforcement of creditors' rights
generally and by equitable limitations on the availability of specific remedies.

         (d) CONSENTS AND APPROVALS; AUTHORITY RELATIVE TO THIS AGREEMENT.

                  (i) No consent, authorization or approval of, filing or
registration with, or cooperation from, any Governmental Authority or any other
Person not a party to this Agreement is necessary in connection with the
execution, delivery and performance by such Purchaser of this Agreement and its
Related Agreements and the consummation by such Purchaser of the transactions
contemplated hereby and thereby.

                  (ii) The execution, delivery and performance by such Purchaser
of this Agreement and its Related Agreements do not and will not (1) violate any
Law applicable to such Purchaser; (2) violate or conflict with, result in a
breach or termination of, constitute a default or give any third party any
additional right (including a termination right) under, permit cancellation of,
result in the creation of any Lien upon any of the assets or properties of such
Purchaser under, or result in or constitute a circumstance which, with or
without notice or lapse of time or both, would constitute any of the foregoing
under, any contract to which Purchaser is a party or by which such Purchaser or
any of its assets or properties are bound; (3) permit the acceleration of the
maturity of any indebtedness of such Purchaser or indebtedness secured by its
assets or properties; or (4) for each Purchaser that is not an individual,
violate or conflict with any provision of such Purchaser's organizational
documents.

         (e) BROKERS. No broker, lender or investment banker is entitled to any
brokerage, lender's or other fee or commission from any party in connection with
the transactions contemplated by this Agreement based on arrangements made by or
on behalf of such Purchaser.


                                                              PURCHASE AGREEMENT

                                      -7-

<PAGE>

         (f) PURCHASE FOR INVESTMENT. Such Purchaser is purchasing the Shares
hereunder for investment without any intent of the distribution thereof within
the meaning of the Securities Act.

         (g) ACCREDITED INVESTOR. Such Purchaser is an "accredited investor"
within the meaning of Regulation 501(a) under the Securities Act and is able to
bear the economic risk of acquisition of the Shares, can afford to sustain a
total loss on such investment, and has such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and
risk of the proposed investment. Such Purchaser has been furnished the
opportunity to ask questions of and receive answers from representatives of the
Company concerning the business and financial affairs of the Company.

                  5. COVENANTS.

         (a) FINANCIAL INFORMATION. (1) As soon as practicable after the end of
each fiscal year of the Company, and in any event within 120 days thereafter,
the Company shall furnish to each Purchaser that holds (together with its
Affiliates) at least 750,000 Shares, an audited balance sheet and income
statement of the Company (the "FINANCIAL INFORMATION") as at the end of such
fiscal year, prepared in accordance with GAAP consistently applied.

                  (2) As soon as practicable after the end of the first, second
and third quarterly accounting periods in each fiscal year of the Company, and
in any event within 60 days thereafter, the Company shall furnish to each
Purchaser that holds (together with its Affiliates) at least 750,000 Shares,
unaudited Financial Information for such period and for such fiscal year to
date, prepared in accordance with GAAP consistently applied, subject to changes
resulting from normal year-end audit adjustments, and except that such Financial
Information need not contain the notes required by GAAP.

                  (3) Each Purchaser acknowledges that any information obtained
by such Purchaser pursuant to this Section 5(a) that may be proprietary to the
Company or otherwise confidential shall not be disclosed without the prior
written consent of the Company and the provision of such information shall be
subject to the receipt by the Company of a confidentiality agreement covering
such information and reasonably acceptable to the Company and such Purchaser.
Each Purchaser further acknowledges and understands that any information so
obtained that may be considered "inside" non-public information shall not be
utilized by such Purchaser in connection with purchases and/or sales of the
Company's securities except in compliance with applicable state and federal
antifraud statutes. The Company may exclude a Purchaser from the distribution of
the information to be delivered pursuant hereto if the Board of Directors
determines in good faith upon advice of counsel that such exclusion is
reasonably necessary to preserve attorney-client privilege or to protect other
similar confidential information. The rights and obligations of the parties
pursuant to this Section 5(a) shall terminate upon the closing of an Initial
Public Offering.

         (b) BOARD OBSERVER. EMC shall be entitled to designate one non-voting
observer (the "NON-VOTING OBSERVER") to attend (but not vote at) all meetings of
the Board of Directors. The Non-Voting Observer shall have the same access to
information concerning the business and operations of the Company and at the
same time as the directors of the Company, except for such



                                                              PURCHASE AGREEMENT

                                      -8-

<PAGE>

information that the Company reasonably determines it cannot distribute for
confidentiality reasons, and shall be entitled to ask questions of the Board of
Directors, but shall not be entitled to vote or otherwise seek to influence the
business decisions of the Board of Directors. Any other Purchaser that owns
(together with its Affiliates) at least 750,000 Shares shall also have the same
access to financial information of the Company at the same time as the directors
of the Company, except for such information that the Company reasonably
determines it cannot distribute for confidentiality reasons. The provision of
any such information to the Non-Voting Observer and any such Purchasers shall be
subject to the receipt by the Company of a confidentiality agreement covering
such information and reasonably acceptable to the Company and such Purchaser. If
(1) the Company receives or solicits an expression of interest to purchase or
sell (i) more than 50% of the voting stock of the Company or (ii) all or
substantially all of the assets of the Company, or (2) there occurs a Material
Adverse Effect, then the Company shall promptly notify EMC of such expression of
interest or Material Adverse Effect, as the case may be, and EMC shall be
entitled to designate for election to the Board of Directors one director (the
"EMC DIRECTOR"). The Company will, to the extent requested by EMC, take all
action necessary for the EMC Director to be elected to the Board of Directors as
soon as possible after such request by EMC. In connection with any annual
meeting of stockholders of the Company at which the term of the EMC Director is
to expire, the Company will take all necessary action to cause the EMC Director
to be nominated and use its reasonable best efforts to cause the EMC Director to
be elected to the Board of Directors. In the event a vacancy shall exist in the
office of the EMC Director, EMC shall be entitled to designate a successor and
the Board of Directors shall elect such successor and, in connection with the
meeting of stockholders of the Company next following such election, nominate
such successor for election as director by the stockholders and use its
reasonable best efforts to cause the successor to be elected. EMC's right to
nominate the EMC Director (if such right comes into existence after the date
hereof) and the Non-Voting Observer and the Company's obligation (if such
obligation comes into existence after the date hereof) to take any action to
cause the EMC Director to be elected to the Board of Directors shall terminate
as of the Initial Public Offering. In addition, the term of the EMC Director and
all rights of the EMC Director and the Non-Voting Observer and any other
Purchasers, including the rights to observe and have access to the books and
records of the Company and other information as provided above, shall expire as
of such time. Subject to any other agreement between the parties, EMC and any
other Purchaser that receives information agrees that the information provided
by the Company, officers, directors and employees pursuant to this Section 5(b)
will be used solely for the purpose of evaluating such Purchaser's investment in
the Shares, the Conversion Shares and the Warrant Shares, as applicable, and
that such information will be kept strictly confidential by such Purchaser;
PROVIDED that the foregoing obligation of such Purchaser shall not (a) relate to
any information that (i) is or becomes generally available other than as a
result of unauthorized disclosure by such Purchaser or by persons to whom such
Purchaser has made such information available, (ii) is already in such
Purchaser's possession, provided that such information is not subject to another
confidentiality agreement with or other obligation of secrecy to the Company or
(iii) is or becomes available to such Purchaser on a non-confidential basis from
a third party that is not, to such Purchaser's knowledge, bound by any other
confidentiality agreement with the Company or its subsidiaries, or (b) prohibit
disclosure of any information if required by Law or the rules of any stock
exchange. EMC and each other Purchaser hereby acknowledges that it is aware that
the United States securities laws prohibit any person who has received from an
issuer or any


                                                              PURCHASE AGREEMENT

                                      -9-

<PAGE>

Affiliate thereof any material, non-public information from
purchasing or selling securities of such issuer or from communicating such
information to any other person under circumstances in which it is reasonably
foreseeable that such person is likely to purchase or sell such securities.

         (c) AMENDED CERTIFICATE. The Company shall, prior to or concurrently
with the Closing, cause the Amended Certificate to be filed with the Secretary
of State of the State of Delaware.

         (d) COOPERATION. Each of the Purchasers and the Company agrees to use
its reasonable best efforts to take, or cause to be taken, all such further
actions as shall be necessary to make effective and consummate the transactions
contemplated by this Agreement.

         (e) RESERVE SHARES. The Company will at all times reserve and keep
available, solely for issuance and delivery upon conversion of the Shares, the
number of shares of common stock from time to time issuable upon conversion of
all Shares at the time outstanding (the "CONVERSION SHARES") and any shares of
common stock to be issued pursuant to the Warrant (the "WARRANT SHARES"). All
Conversion Shares and Warrant Shares shall be duly authorized and, when issued
upon such conversion or exercise in accordance with the Amended Certificate or
the Warrant, as the case may be, shall be validly issued, fully paid and
nonassessable.

         (f) RESTRICTIONS ON TRANSFER. The Purchasers will not, prior to the
earlier of (a) December 31, 2004 or (b) the time of the closing of the Initial
Public Offering, sell, transfer, assign, convey, gift, mortgage, pledge,
encumber, hypothecate, or otherwise dispose of, directly or indirectly,
("TRANSFER") any of the Shares or any Conversion Shares except for (i) Transfers
between and among the Purchasers and their Affiliates provided such Transfer is
in accordance with the transfer restrictions applicable to the Shares or the
Conversion Shares under federal and state securities laws and the Affiliate
transferee agrees to be bound by the restrictions applicable to such Shares or
Conversion Shares, including without limitation the agreements set forth in this
Section 5(f), and (ii) Transfers (x) pursuant to a bona fide tender or exchange
offer made pursuant to a merger or other agreement approved by the Board of
Directors to acquire securities of the Company; PROVIDED, that the Purchasers
may not tender or exchange in such offer unless at least 50% of the outstanding
voting securities of the Company have previously been tendered or exchanged by
other holders of the Company's securities in connection therewith, (y) pursuant
to any cash merger, or other business combination transaction to which the
Company is a party or involved in which the common stock of the Company's
stockholders is exchanged for cash upon consummation of such merger or other
business combination or (z) agreed to in writing by the Company. Notwithstanding
any other provision of this Section 5(f), no Purchaser shall avoid the
provisions of this Section 5(f) by making one or more transfers to one or more
Affiliates and then disposing of all or any portion of such Purchaser's interest
in any such Affiliate.

         (g) PREEMPTIVE RIGHT. If at any time the Company desires to issue or
sell any shares (the "ADDITIONAL Shares") of its capital stock that entitle the
holder thereof to voting rights (other than Non-Preemptive Shares) to any
Person, the Company shall give a written notice (the "ISSUANCE NOTICE") to the
Purchasers setting forth the proposed terms of such Additional Shares and the
quantity of Additional Shares to be issued, the issuance date and the price at
which such Additional Shares shall be issued. Each of the Purchasers shall have
the option to purchase the number of Additional Shares necessary to maintain
such Purchaser's percentage of issued and



                                                              PURCHASE AGREEMENT

                                      -10-

<PAGE>

outstanding voting shares of the Company at the time of the Issuance Notice,
which option may be exercised by giving written notice to the Company (the
"RESPONSE NOTICE") within 14 days of the Issuance Notice that contains an
unconditional agreement to purchase all (and not less than all) of the
Additional Shares to which such Purchaser is entitled to purchase. Failure by a
Purchaser to give the Response Notice to the Company within such 14-day period
shall be deemed to be a rejection of such option. At the option of the Company,
within 14 days of Company's receipt of the Response Notice or at the time of the
closing of the sale of Additional Shares to any Persons pursuant to the next
sentence, the Company shall sell to such Purchaser and such Purchaser shall
purchase the Additional Shares that such Purchaser agreed to purchase in the
Response Notice, at the price and on the terms set forth in the Issuance Notice.
For a period of 270 days after any Issuance Notice, the Company shall have the
right to issue or sell to any Person up to the number of Additional Shares
specified in the Issuance Notice less the number of Additional Shares pursuant
to duly tendered Response Notices at a price and on terms not materially less
favorable to the Company than as specified in the Issuance Notice. If the
Company desires to issue or sell Additional Shares, (i) after such 270-day
period, (ii) on terms materially less favorable to the Company than as specified
in the Issuance Notice or (iii) in a quantity greater than as specified in the
previous sentence, the Company must again comply with this Section 5(g). The
rights and obligations of the parties pursuant to this Section 5(g) shall
terminate upon the closing of an Initial Public Offering.

         (h) COMPLIANCE WITH SECURITIES LAWS. Such Purchaser understands that
the Shares, the Conversion Shares and the Warrant Shares will not be registered
under the Securities Act or applicable state securities laws and agrees not to
sell, pledge or otherwise transfer any of the Shares, Conversion Shares and the
Warrant Shares in the absence of such registration or an opinion of counsel
reasonably satisfactory to the Company that such registration is not required.
Except as set forth in the Registration Rights Agreement, such Purchaser
acknowledges that the Company is not required to register the Shares, the
Conversion Shares or the Warrant Shares.

                  6. CONDITIONS.

         (a) CONDITIONS TO OBLIGATIONS OF THE PURCHASERS. The obligations of the
Purchasers to consummate the transactions contemplated hereby shall be subject
to the satisfaction or waiver at or prior to the Closing of each of the
following conditions:

                  (i) No statute, rule or regulation or order of any court or
administrative agency shall be in effect which prohibits the consummation of the
transactions contemplated hereby;

                  (ii) The Company shall have performed, satisfied and complied
in all material respects with all of its covenants and agreements set forth in
this Agreement to be performed, satisfied and complied with prior to or at the
Closing;

                  (iii) The Company shall have executed and delivered to each of
the Purchasers the Registration Rights Agreement;



                                                              PURCHASE AGREEMENT

                                      -11-

<PAGE>

                  (iv) The Amended Certificate shall have been duly filed with
the Secretary of State of the State of Delaware in accordance with the laws of
the State of Delaware and the Amended Certificate shall be in full force and
effect;

                  (v) The Company shall have executed and delivered to EMC the
Warrant;

                  (vi) The Conversion Shares and the Warrant Shares shall have
been duly authorized and reserved for issuance;

                  (vii) Mayer, Brown & Platt shall have delivered an opinion in
form and substance reasonably satisfactory to Purchasers;

                  (viii) The Company shall have delivered a good standing
certificate for the Company; and

                  (ix) There shall not have occurred any event, circumstances,
condition, fact, effect, or other matter which has had or would reasonably be
expected to have a Material Adverse Effect.

         (b) CONDITIONS TO OBLIGATIONS OF THE COMPANY. The obligations of the
Company to consummate the transactions contemplated hereby shall be subject to
the satisfaction or waiver at or prior to the Closing of each of the following
conditions:

                  (i) No statute, rule or regulation or order of any court or
administrative agency shall be in effect which prohibits the consummation of the
transactions contemplated hereby;

                  (ii) Each of the Purchasers shall have executed and delivered
to the Company its Related Agreements; and

                  (iii) The Purchasers shall have performed, satisfied and
complied in all material respects with all of their covenants and agreements set
forth in this Agreement to be performed, satisfied and complied with prior to or
at the Closing Date.

                  7. [INTENTIONALLY OMITTED]

                  8. SURVIVAL OF REPRESENTATIONS AND WARRANTIES.

         The representations and warranties of the parties contained in this
Agreement shall expire on the 18-month anniversary of the Closing, except for
those representations and warranties contained in Sections 3(b) and 3(d) which
shall expire on the later of (i) the 18-month anniversary of the Closing or (ii)
the closing of an Initial Public Offering. After the expiration of such period,
any claim by a party based upon any such representation or warranty shall be of
no further force and effect, except to the extent a party has given notice to
the other party of a claim for breach of any such representation or warranty
prior to the expiration of such period, in which event any representation or
warranty to which such claim relates shall survive with respect to such claim
until such claim is resolved as provided in this Section 8. The covenants and


                                                              PURCHASE AGREEMENT
                                      -12-

<PAGE>

agreements of the parties hereto contained in this Agreement shall survive the
Closing until performed in accordance with their terms.

                  9. RESTRICTIVE LEGENDS. In addition to the restrictions set
forth in Section 5(f), no Shares, Conversion Shares or Warrant Shares may be
transferred without registration under the Securities Act and applicable state
securities laws unless counsel reasonably acceptable to the Company shall advise
the Company that such transfer may be effected without such registration. Each
certificate representing any of the foregoing shall bear legends in
substantially the following form:

         THE SECURITIES EVIDENCED BY THIS CERTIFICATE SHALL BE CONVERTIBLE INTO
         THE COMPANY'S COMMON STOCK IN THE MANNER AND ACCORDING TO THE TERMS SET
         FORTH IN THE CERTIFICATE OF INCORPORATION. THE COMPANY IS AUTHORIZED TO
         ISSUE MORE THAN ONE CLASS OR SERIES OF STOCK. AS REQUIRED UNDER
         DELAWARE LAW, THE COMPANY SHALL FURNISH TO ANY HOLDER UPON REQUEST AND
         WITHOUT CHARGE, A FULL SUMMARY STATEMENT OF THE DESIGNATIONS, VOTING
         RIGHTS, PREFERENCES, LIMITATIONS AND SPECIAL RIGHTS OF THE SHARES OF
         EACH CLASS OR SERIES AUTHORIZED TO BE ISSUED BY THE COMPANY SO FAR AS
         THEY HAVE BEEN FIXED AND DETERMINED AND THE AUTHORITY OF THE BOARD OF
         DIRECTORS TO FIX AND DETERMINE THE DESIGNATIONS, VOTING RIGHTS,
         PREFERENCES, LIMITATIONS AND SPECIAL RIGHTS OF THE CLASSES AND SERIES
         OF SECURITIES OF THE COMPANY.

         THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR UNDER
         ANY APPLICABLE STATE LAWS. THE SHARES REPRESENTED BY THIS CERTIFICATE
         HAVE BEEN ACQUIRED BY THE REGISTERED OWNER HEREOF FOR INVESTMENT AND
         NOT WITH A VIEW TO OR FOR SALE IN CONNECTION WITH ANY DISTRIBUTION
         THEREOF WITHIN THE MEANING OF THE 1933 ACT. THE SHARES MAY NOT BE SOLD,
         PLEDGED, TRANSFERRED OR ASSIGNED EXCEPT IN A TRANSACTION WHICH IS
         EXEMPT UNDER THE PROVISIONS OF THE 1933 ACT OR ANY APPLICABLE STATE
         SECURITIES LAWS, OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR
         IN A TRANSACTION OTHERWISE IN COMPLIANCE WITH APPLICABLE FEDERAL AND
         STATE SECURITIES LAWS.

         THE SALE, PLEDGE, TRANSFER, ASSIGNMENT OR OTHER DISPOSITION OF THE
         SHARES REPRESENTED BY THIS CERTIFICATE IS RESTRICTED BY AND SUBJECT TO
         THE PROVISIONS OF A PURCHASE AGREEMENT DATED AS OF NOVEMBER 10, 2000, A
         COPY OF WHICH IS AVAILABLE UPON REQUEST FOR INSPECTION AT THE OFFICE'S
         OF THE COMPANY. ANY SUCH REQUEST SHOULD BE ADDRESSED TO THE SECRETARY
         OF THE COMPANY.


                                                              PURCHASE AGREEMENT
                                      -13-

<PAGE>

                  10. SUCCESSORS AND ASSIGNS; NO THIRD PARTY BENEFICIARIES. This
Agreement shall bind and inure to the benefit of the Company and the Purchasers
and the respective successors, permitted assigns, heirs and personal
representatives of the Company and the Purchasers; PROVIDED that the Company may
not assign its rights or obligations under this Agreement to any Person without
the prior written consent of the Purchasers, and PROVIDED FURTHER that the
Purchasers may not assign their rights or obligations under this Agreement to
any Person (other than an Affiliate) without the prior written consent of the
Company. This Agreement is intended for the benefit of the parties hereto and
their respective permitted successors and assigns, and is not for the benefit
of, nor may any provision hereof be enforced by, any other person.

                  11. NOTICES. Each notice, demand, request, request for
approval, consent, approval, disapproval, designation or other communication
(each of the foregoing being referred to herein as a notice) required or desired
to be given or made under this Agreement shall be in writing (except as
otherwise provided in this Agreement), and shall be effective and deemed to have
been received (i) when delivered in person, (ii) when sent by fax with receipt
acknowledged, (iii) five days after having been mailed by certified or
registered United States mail, postage prepaid, return receipt requested, or
(iv) the next business day after having been sent by a nationally recognized
overnight mail or courier service, receipt requested. Notices shall be addressed
as set forth below:

         If to EMC:

                  EMC Corporation
                  35 Parkwood Drive
                  Hopkinton, MA 01748
                  Attn: Office of the General Counsel
                  Facsimile: (508) 497-6915

         with a copy to the Vice President, Corporate Development

                  Facsimile: (508) 435-8900

         If to any of the other Purchasers, at the address set forth under his
         name on the signature page.

         With a copy to:

         -----------------------------------------------------

         -----------------------------------------------------

         -----------------------------------------------------
                  Attn:
                       ---------------------------------------
                  Facsimile:
                            ----------------------------------


                                                              PURCHASE AGREEMENT
                                      -14-

<PAGE>

         If to the Company:

                  CommVault Systems, Inc.
                  2 Crescent Place
                  Oceanport, New Jersey 07757
                  Attn:  N. Robert Hammer
                  Facsimile:  (732) 870-4514

         With a copy to:

                  Mayer, Brown & Platt
                  190 S. LaSalle Street
                  Chicago, Illinois 60603
                  Attention: Philip J. Niehoff
                  Facsimile: (312) 701-7711

                  12. FURTHER ASSURANCES. At any time or from time to time after
the Closing, the Company, on the one hand, and the Purchasers, on the other
hand, agree to cooperate with each other, and at the request of the other party,
to execute and deliver any further instruments or documents and to take all such
further action as the other party may reasonably request in order to evidence or
effectuate the consummation of the transactions contemplated hereby and to
otherwise carry out the intent of the parties hereunder.

                  13. PUBLIC DISCLOSURE. Except as required by Law or the rules
of any stock exchange (in which case the Company shall give EMC notice at least
24 hours prior to any public announcement containing its name), no public
announcement or other publicity regarding the transactions referred to herein
shall be made by any of the Purchasers or the Company or any of their respective
Affiliates, officers, directors, employees, representatives or agents, without
the prior written agreement of Purchasers and Company, in any case, as to form,
content, timing and manner of distribution or publication; PROVIDED, HOWEVER,
that nothing in this Section shall prevent such parties from (i) discussing such
transactions with those Persons whose approval, agreement or opinion, as the
case may be, is required for consummation of such particular transaction or
transactions or (ii) disclosing such information about such transactions in a
registration statement or prospectus in connection with the Initial Public
Offering or (iii) if the disclosing party is a Purchaser, disclosing such
Purchaser's investment herein provided that such disclosure does not mention any
other Purchaser by name and is approved by the Company in writing. Each of the
parties acknowledge and agree that there would be no adequate remedy at Law if
it fails to perform its obligations under this Section 13 and accordingly agrees
that each of the other parties, in addition to any other remedy to which it may
be entitled at Law or in equity, shall be entitled to compel specific
performance of the obligations of the first party under this Section 13.

                  14. WAIVER. No party may waive any of the terms or conditions
of this Agreement except by a duly signed writing referring to the specific
provision to be waived.


                                                              PURCHASE AGREEMENT
                                      -15-

<PAGE>

                  15. ENTIRE AGREEMENT. This Agreement and the Related
Agreements constitute the entire agreement, and supersedes all other prior
agreements and understandings, both written and oral, among the parties hereto
and their affiliates with respect to the matters set forth herein.

                  16. SEVERABILITY. If any provision of this Agreement shall be
held invalid, illegal or unenforceable, the validity, legality or enforceability
of the other provisions hereof shall not be affected thereby, and there shall be
deemed substituted for the provision at issue a valid, legal and enforceable
provision as similar as possible to the provision at issue.

                  17. CAPTIONS. The Section references herein are for
convenience of reference only, do not constitute part of this Agreement and
shall not be deemed to limit or otherwise affect any of the provisions hereof.

                  18. COUNTERPARTS. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original but all of which
shall constitute one and the same instrument.

                  19. GOVERNING LAW. This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Delaware.

                  20. WAIVER OF JURY TRIAL. THE COMPANY AND THE PURCHASERS
HEREBY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
ACTION, PROCEEDING OR LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY.

                  21. FEES AND EXPENSES. All costs and expenses incurred in
connection with this Agreement shall be paid by the party incurring such costs
or expense.

                  22. JOINT PARTICIPATION IN DRAFTING. Each party to this
Agreement has participated in the negotiation and drafting of this Agreement. As
such, the language used herein shall be deemed to be the language chosen by the
parties hereto to express their mutual intent, and no rule of strict
construction will be applied against any party to this Agreement.


                                                              PURCHASE AGREEMENT

                                     * * * *

                                      -16-

<PAGE>


         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered as of the day and year first written above.

                             EMC INVESTMENT CORPORATION

                             By: /S/ MICHAEL J. CODY
                                 -----------------------------------------------
                             Name: MICHAEL J. CODY
                                   ---------------------------------------------
                             Title: VICE PRESIDENT, CORPORATE DEVELOPMENT
                                    --------------------------------------------
                             Shares:  1,652,893
                             Purchase Price: $20,000,005



                                                              PURCHASE AGREEMENT
<PAGE>

                             THE VAN WAGONER FUNDS

                             By: /S/ GARRETT R. VAN WAGONER
                                 -----------------------------------------------
                             Name: GARRETT R. VAN WAGONER
                                   ---------------------------------------------
                             Title: PRESIDENT
                                    --------------------------------------------
                             345 California Street
                             Suite 2450
                             San Francisco, CA 94104
                             Facsimile:
                                       -----------------------------------------
                             Shares:  826,447
                             Purchase Price: $[10,000,008]


                             VAN WAGONER CAPITAL
                             PARTNERS, L.P.

                             By: /S/ GARRETT R. VAN WAGONER
                                 -----------------------------------------------
                             Name:
                                  ----------------------------------------------
                             Title:
                                   ---------------------------------------------
                             345 California Street
                             Suite 2450
                             San Francisco, CA 94104
                             Facsimile:
                                       -----------------------------------------
                             Shares: None
                             Purchase Price: $
                                              ----------------------------------


                             VAN WAGONER CROSSOVER FUND, L.P.

                             By:/S/ GARRETT R. VAN WAGONER
                                ------------------------------------------------
                             Name:
                                  ----------------------------------------------
                             Title:
                                   ---------------------------------------------
                             345 California Street
                             Suite 2450
                             San Francisco, CA 94104
                             Facsimile:
                                       -----------------------------------------
                             Shares: None
                             Purchase Price: $
                                             -----------------------------------



                                                              PURCHASE AGREEMENT
<PAGE>

                             DRW VENTURE PARTNERS LP

                             By:  Dain Rauscher Corporation, its General Partner

                             By: /S/ MARY ZIMMER
                                 -----------------------------------------------
                             Name: MARY ZIMMER
                                   ---------------------------------------------
                             Title: DIRECTOR, DRW FINANCE ADMINISTRATION
                                    --------------------------------------------
                             60 South 6th Street
                             Minneapolis, MN 55402
                             Attn: Mary Zimmer MS 54N2
                             Facsimile:  (612) 373-1610
                                               ---------------------------------
                             Shares:  61,984
                             Purchase Price: $750,006.40



                                                              PURCHASE AGREEMENT
<PAGE>

                             MORGAN KEEGAN OPPORTUNITY FUND, L.P.

                             By:  Merchant Bankers, Inc., its
                             General Partner

                             By: /S/ MINOR PERKINS
                                 -----------------------------------------------
                             Name: MINOR PERKINS
                                   ---------------------------------------------
                             Title: VICE PRESIDENT
                                    --------------------------------------------
                             50 North Front Street, 19th Floor
                             Memphis, TN 38103
                             Facsimile:  (901) 579-4891
                             Shares:  132,000
                             Purchase Price:  $1,597,200


                             MORGAN KEEGAN EMPLOYEE
                             INVESTMENT FUND, L.P.

                             By:  Merchant Bankers, Inc., its
                             General Partner

                             By: /S/ MINOR PERKINS
                                 -----------------------------------------------
                             Name: MINOR PERKINS
                                   ---------------------------------------------
                             Title: VICE PRESIDENT
                                    --------------------------------------------
                             50 North Front Street, 19th Floor
                             Memphis, TN 38103
                             Facsimile:  (901) 579-4891
                             Shares:  33,290
                             Purchase Price:  $402,809



                                                              PURCHASE AGREEMENT
<PAGE>

                             /S/ BARBARA M. BYRNE
                             ---------------------------------------------------
                             Barbara M. Byrne
                             101 Hun Road
                             Princeton, NJ 08540
                             Shares:  8,265
                             Purchase Price:  $100,006.50


                             /S/ GREG REYE
                             ---------------------------------------------------
                             Greg Reyes
                             c/o Brocade Communication Systems
                             1745 Technology Drive
                             San Jose, CA 95110
                             Shares:  41,323
                             Purchase Price:  $500,008.30


                             /S/ WILL HERMAN
                             ---------------------------------------------------
                             Will Herman
                             8 Cobblestone Place
                             Sudbury, MA 01776
                             Shares:  2,156
                             Purchase Price:  $26,087.60



                                                              PURCHASE AGREEMENT
<PAGE>

                              COMMVAULT SYSTEMS, INC.

                              By: /S/ N. ROBERT HAMMER
                                  ----------------------------------------------
                              Name: N. ROBERT HAMMER
                                    --------------------------------------------
                              Title: CEO
                                     -------------------------------------------



                                                              PURCHASE AGREEMENT
<PAGE>

                                   SCHEDULE A

                                  SUBSIDIARIES

CommVault Systems (Canada) Inc., a Canadian corporation
CommVault Systems Mexico S de RL de CV, a Mexican company
CommVault Holding Company BV, a Netherlands company
CommVault Systems Netherlands BV, a Netherlands company


                                                              PURCHASE AGREEMENT

                                      A-1

<PAGE>

                                   SCHEDULE B

1.       Employment Agreement, dated as of January 20, 1999, between the Company
         and N. Robert Hammer, under which Mr. Hammer has received options to
         purchase common stock.

2.       Corporate Change of Control Agreements, between the Company and (i)
         Louis Miceli, (ii) Brian McAteer, (iii) Larry Cormier, (iv) Al Bunte
         and (v) David West.

3.       Stock Plan dated as of May 22, 1996, pursuant to which (i) the Company
         is authorized to issue options to purchase 9.7 million shares of its
         common stock and (ii) options to purchase 9.2 million shares of common
         stock have been granted.

4.       Preferred Stock holders have conversion rights, pursuant to the Amended
         Certificate, and preemptive rights pursuant to the Stockholders'
         Agreement, dated as of May 22, 1996 and amended as of July 23, 1998,
         between the Company and DLJ Merchant Banking Partners, L.P., DLJ
         International Partners C.V., DLJ Offshore Partners C.V., DLJ Merchant
         Banking Funding, Inc., DLJ Capital Corporation, Sprout Growth II L.P.,
         Sprout CEO Fund L.P. and certain other investors.

5.       A Warrant to purchase 39,840 shares of common stock was issued to DLJ
         Merchant Banking Partners, L.P. and certain of its Affiliates in
         connection with the Loan Agreement dated as of January 14, 2000,
         between the Company and the Lenders therein, which Warrant has been
         exercised and such shares have been issued.

6.       Purchase Agreement, dated as of August 4, 1999, between the Company and
         Comm Vault Systems International, B.V. ("CVSI") and the shareholders of
         CVSI, pursuant to which the 957,000 shares of the Company's common
         stock were in consideration for the acquisition of the business of CVSI
         by the Company.

7.       The Company entered into an agreement with Northern Concepts
         Incorporated ("NCI"), dated as of May 2000 pursuant to which 285,000
         shares of the Company's common stock was issued in consideration for
         the acquisition of the business of NCI by the Company.

8.       Preferred Stock holders have conversion rights, pursuant to the Amended
         Certificate, and preemptive rights pursuant to the Purchase Agreement,
         dated as of April 14, 2000, among the Company and Microsoft Corporation
         and certain other investors signatories thereto.

9.       A Warrant to purchase up to 2,616,933 shares of common stock was issued
         to Microsoft Corporation in connection with the Purchase Agreement
         referred to in item 8 above.

The Company may, from time to time, issue additional shares of common stock or
options or warrants to purchase its common stock in an effort to recruit new
officers and employees. Non-Preemptive Shares shall include all such options or
warrants that may be issued in the future.


                                                              PURCHASE AGREEMENT
                                      B-1
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.16
<SEQUENCE>5
<FILENAME>y17249a2exv10w16.txt
<DESCRIPTION>EX-10.16: SERIES CC PURCHASE AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.16

                          SERIES CC PURCHASE AGREEMENT

                  THIS SERIES CC PURCHASE AGREEMENT (this "AGREEMENT"), dated as
of February 14, 2002, is by and between funds and accounts managed by affiliates
of Putnam Investments, LLC, a Delaware limited liability company ("PUTNAM"), the
other parties listed on SCHEDULE A hereto (collectively with Putnam, the
"PURCHASERS") and CommVault Systems, Inc., a Delaware corporation (the
"COMPANY").

                  WHEREAS, each of the Purchasers desire to invest in the
Company; and

                  WHEREAS, the Company desires to issue and sell to the
Purchasers an aggregate of 7,345,896 shares of its Series CC Preferred Stock
(the "SHARES") and the Purchasers desire to purchase the Shares on the terms and
subject to the conditions described herein.

                  NOW, THEREFORE, in consideration of the premises and of the
mutual covenants, agreements and warranties herein contained, the parties hereto
agree as follows:

                  1. DEFINITIONS. Capitalized terms that are not defined in the
text of this Agreement have the meanings set forth below:

         "Affiliate" shall mean, with respect to any specified Person, any other
Person which, directly or indirectly, owns, manages or controls, is under common
ownership, management or control with, or is owned, managed or controlled by,
such specified Person and, with respect to Putnam, any funds or accounts where
Putnam Investment Management, LLC or its affiliates, acts as Investment Adviser
(as defined in the Investment Advisers Act of 1940, as amended). For purposes of
this definition, a Person shall be deemed to control another Person if the first
Person owns, manages or holds more than 50% of the voting power of the second
Person.

         "Amended Certificate" shall mean the Amended and Restated Certificate
of Incorporation of the Company in the form of EXHIBIT 2.

         "Board of Directors" shall mean the board of directors of the Company.

         "Code" means the Internal Revenue Code of 1986 or any successor
statute, and the rules and regulations thereunder, collectively and as from time
to time amended and in effect.

         "Commission" shall mean the Securities and Exchange Commission.

         "Conversion Shares" shall have the meaning set forth in Section 5(e).

         "ERISA" means the Employee Retirement Income Security Act of 1974 or
any successor statute and the rules and regulations thereunder, collectively and
as from time to time amended and in effect.

         "Governmental Authority" shall mean the government of the United States
or any foreign country or any state or political subdivision thereof and any
entity, body or authority exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government.

                                      -1-

<PAGE>

         "Initial Public Offering" shall mean the initial public offering or
sale of common stock by the Company through underwriters or otherwise, that
requires registration, qualification or the filing of a prospectus under the
Securities Act.

         "Knowledge" means the actual knowledge (assuming reasonable
investigation) of N. Robert Hammer, Louis Miceli, Larry Cormier, Al Bunte, Lee
Parker and the other senior executives of the Company.

         "Law" shall mean any law, statute, regulation, ordinance, rule, order,
decree, judgment, consent decree, settlement agreement or governmental
requirement enacted, promulgated, entered into, agreed or imposed by any
Governmental Authority.

         "Lien" shall mean any mortgage, lien (except for any lien for taxes not
yet due and payable), charge, restriction, pledge, security interest, option,
lease or sublease, claim, right of any third party, easement, encroachment or
encumbrance.

         "Material Adverse Effect" shall mean an effect on the business,
operations, assets, liabilities, results of operations, cash flows or condition
(financial or otherwise) of the Company which is material and adverse.

         "Non-Preemptive Shares" shall mean any voting shares of the capital
stock of the Company issued, sold, granted or conveyed (i) as consideration in
any acquisition of all or a portion of any Person or a merger or combination
with any Person duly authorized by the Board of Directors, (ii) to any current
or new director, officer, employee or consultant of the Company pursuant to any
plan or arrangement, now or hereafter existing, duly authorized by the Board of
Directors or (iii) pursuant to any of the items listed on SCHEDULE C.

         "Person" shall mean any individual, corporation, proprietorship, firm,
partnership, limited liability company, limited partnership, trust, association,
Massachusetts business trust or other entity.

         "Preferred Stock" shall mean, collectively, the Company's issued and
outstanding Series A Preferred Stock, Series B Preferred Stock, Series C
Preferred Stock, Series D Preferred Stock, Series E Preferred Stock, Series AA
Preferred Stock and Series BB Preferred Stock.

         "Registration Rights Agreement" shall mean a Registration Rights
Agreement to be entered into between Purchasers and the Company as of the
Closing in the form of EXHIBIT 1.

         "Securities Act" shall mean the Securities Act of 1933, as amended.

         "Series AA Purchase Agreement" shall mean the Purchase Agreement, dated
as of April 14, 2000 between the Company and the other Persons party thereto.

         "Series AA Registration Rights Agreement" shall mean the Registration
rights Agreement, dated as of April 14, 2000, between the Company and the
holders of the Company's Series AA Preferred Stock.

                                      -2-

<PAGE>

         "Series BB Purchase Agreement" shall mean the Purchase Agreement, dated
as of November 10, 2000, by and between the Company and the other Persons party
thereto.

         "Series BB Registration Rights Agreement" shall mean the Registration
Rights Agreement, dated as of November 10, 2000, between the Company and the
holders of the Series BB Preferred Stock.

         "Stock Plan" shall mean the Company's stock plan, as described on
SCHEDULE C.

         "Stockholders' Agreement" shall mean the stockholders' agreement, dated
as of May 22, 1996, and as further amended, between the Company and certain of
its stockholders.

         "Subsidiaries" shall mean the Persons set forth on SCHEDULE B.

                  2. PURCHASE AND SALE OF SHARES.

         (a) PURCHASE PRICE. Subject to the terms and conditions set forth in
this Agreement, at the Closing (as hereinafter defined), the Purchasers shall
purchase, and the Company shall issue and sell to the Purchasers the Shares for
an aggregate purchase price (the "Purchase Price") of $23,000,000. The number of
Shares being sold to each Purchaser and the portion of the Purchase Price
attributable thereto is set forth on SCHEDULE A hereto.

         (b) CLOSING. The closing (the "Closing") of the transactions described
herein shall occur at 10:00 a.m. on February 14, 2002, at the offices of Ropes &
Gray, One International Place, Boston, Massachusetts, or such other place and
time as agreed upon by the Purchasers and the Company. At the Closing, the
Purchasers shall pay the Company the Purchase Price in cash by wire transfer of
immediately available funds to an account designated by the Company, which
designation shall occur at least two business days before the Closing, and the
Company shall deliver to each Purchaser a certificate representing the Shares
purchased by such Purchaser; provided, that, if so requested by a Purchaser that
is an Affiliate of Putnam, the Company will deliver such certificate to such
Purchaser's custodian at least one business day prior to the Closing pursuant to
an escrow arrangement reasonably acceptable to such custodian, the Company and
Putnam.

                  3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company
hereby represents and warrants to each of the Purchasers:

         (a) DUE INCORPORATION; SUBSIDIARIES. Each of the Company and the
Subsidiaries is duly incorporated, validly existing and in good standing under
the laws of its jurisdiction of incorporation, with all requisite power and
authority to own, lease and operate its properties and to carry on its business
as they are now being owned, leased, operated and conducted. Each of the Company
and the Subsidiaries is licensed or qualified to do business and is in good
standing as a foreign corporation in each jurisdiction where the nature of the
properties owned, leased or operated by it and the businesses transacted by it
require such licensing or qualification, except where the failure to be so
licensed or qualified would not individually or in the aggregate have a Material
Adverse Effect. Except as set forth on SCHEDULE B, the Company has no direct or
indirect subsidiaries, either wholly or partially owned, and the Company does
not hold any direct

                                      -3-

<PAGE>

or indirect economic, voting or management interest in any Person or directly or
indirectly own any security issued by any Person. Each Subsidiary is wholly
owned by the Company.

         (b) DUE AUTHORIZATION. The Company has full power and authority to
enter into this Agreement and the Registration Rights Agreement and to
consummate the transactions contemplated hereby and thereby. The execution,
delivery and performance by the Company of this Agreement and the Registration
Rights Agreement have been duly and validly approved by the board of directors
of the Company and no other actions or proceedings on the part of the Company
are necessary to authorize this Agreement, the Registration Rights Agreement and
the transactions contemplated hereby and thereby. The Company has duly and
validly executed and delivered this Agreement and has duly and validly executed
and delivered the Registration Rights Agreement. This Agreement constitutes
legal, valid and binding obligations of the Company and the Registration Rights
Agreement upon execution and delivery by the Company will constitute legal,
valid and binding obligations of the Company, in each case, enforceable in
accordance with their respective terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, moratorium, reorganization or
similar laws in effect which affect the enforcement of creditors' rights
generally and by equitable limitations on the availability of specific remedies.

         (c) CONSENTS AND APPROVALS; AUTHORITY RELATIVE TO THIS AGREEMENT.

                  (i) Except for (x) the approval of the Amended Certificate by
the Company's stockholders and the filing of such certificate with the Delaware
Secretary of State, (y) approval of amendments to the Series AA Registration
Rights Agreement, the Series BB Registration Rights Agreement and the
Stockholders' Agreement and (z) waivers by the holders of the Company's
Preferred Stock of preemptive rights to purchase the Shares (the consents,
amendments and waivers described in clauses (x), (y) and (z) being the "REQUIRED
CONSENTS"), no consent, authorization or approval of, filing or registration
with, or cooperation from, any Governmental Authority or any other Person not a
party to this Agreement that has not been received by the Company is necessary
in connection with the execution, delivery and performance by the Company of
this Agreement and the execution, delivery and performance by the Company of the
Registration Rights Agreement or the consummation of the transactions
contemplated hereby or thereby (including, without limitation, the offer,
issuance, sale and delivery of the Shares and the Conversion Shares).

                  (ii) Assuming receipt of the Required Consents, the execution,
delivery and performance by the Company of this Agreement and the Registration
Rights Agreement or the consummation of the transactions contemplated hereby or
thereby do not and will not (1) violate any Law; (2) violate or conflict with,
result in a breach or termination of, constitute a default or give any third
party any additional right (including a termination right) under, permit
cancellation of, result in the creation of any Lien upon any of the assets or
properties of the Company under, or result in or constitute a circumstance
which, with or without notice or lapse of time or both, would constitute any of
the foregoing under, any contract to which the Company, is a party or by which
the Company or any of its assets or properties are bound; (3) permit the
acceleration of the maturity of any indebtedness of the Company or indebtedness
secured by its assets or properties; or (4) violate or conflict with any
provision of any of the Amended Certificate or by-laws of the Company.


                                      -4-
<PAGE>

         (d) CAPITALIZATION.

                  (i) The authorized capital stock of the Company is as
described in the Amended Certificate. All of the outstanding capital stock of
the Company and each Subsidiary (i) is validly issued, fully paid and
nonassessable and (ii) is free of preemptive rights (except as provided in the
Stockholders' Agreement, Series AA Purchase Agreement, the Series BB Purchase
Agreement or this Agreement). When issued, the Shares and the Conversion Shares
will be validly issued, fully paid and nonassessable and will not have been
issued in violation of any preemptive rights or rights of first refusal. The
authorized capital stock as described in the Amended Certificate contains a
sufficient number of shares of common stock for issuance of the Conversion
Shares.

                  (ii) Except as set forth above or on SCHEDULE C, there are no
shares of capital stock or other securities (whether or not such securities have
voting rights) of the Company issued or outstanding or any subscriptions,
options, warrants, calls, rights, convertible securities or other agreements or
commitments of any character obligating the Company to issue, transfer or sell,
or cause the issuance, transfer or sale of, any shares of its capital stock or
other securities (whether or not such securities have voting rights). Except as
set forth in SCHEDULE C, there are no outstanding contractual obligations of the
Company which relate to the purchase, sale, issuance, repurchase, redemption,
acquisition, transfer, disposition, holding or voting of any shares of its
capital stock or other securities. The maximum number of shares of common stock
that the Company has issued and would be obligated to issue as of the date
hereof is 63,877,195 shares on a fully diluted basis, plus any Shares issued
hereunder and the shares issuable pursuant to the warrants listed in paragraphs
6 and 7 of SCHEDULE C. The outstanding capital stock of the Company immediately
prior to the Closing and before the issuance of the Shares is as follows: (i)
2,039,717 shares of Series A Preferred Stock, (ii) 346,000 shares of Series B
Preferred Stock, (iii) 333,333 shares of Series C Preferred Stock, (iv) 247,204
shares of Series D Preferred Stock, (v) 200,000 shares of Series E Preferred
Stock, (vi) 4,361,555 shares of Series AA Preferred Stock, (vii) 2,758,358
shares of Series BB Preferred Stock and (viii) 36,072,643 shares of Common
Stock.

         (c) LITIGATION.

                  (i) There is no claim, action, suit, investigation or
proceeding ("LITIGATION") pending or, to the Knowledge of the Company,
threatened against the Company or any Subsidiary, or involving any of its
properties or assets by or before any court, arbitrator or other Governmental
Entity which (1) in any manner challenges or seeks to prevent, enjoin, alter or
materially delay the transactions contemplated by this Agreement or (2) if
resolved adversely to the Company or any Subsidiary, would reasonably be
expected to have a Material Adverse Effect.

                  (ii) Neither the Company nor any Subsidiary is in default
under or in breach of any order, judgment or decree of any court, arbitrator or
other Governmental Authority.

         (f) INTELLECTUAL PROPERTY.

                                      -5-

<PAGE>

                  (i) The Company owns all right, title and interest in, or, to
the Knowledge of the Company has the right to use: all patents and the
inventions claimed therein; trademarks, service marks and trade names, together
with associated goodwill; copyrights and copyrightable work; Internet domain
names; registrations and applications relating to any of the foregoing;
know-how, processes, formulae, algorithms, models, methodologies and trade
secrets; computer programs, including any and all software implementations of
algorithms, models and methodologies whether in source code or object code form;
databases and compilations, including any and all data, all documentation,
including user manuals and training materials, related to any of the foregoing;
and the content and information contained on any Company Web site; and other
confidential and proprietary information (collectively, the "PROPRIETARY
ASSETS") used in its business as now conducted and as presently proposed to be
conducted. To the Knowledge of the Company, no person or entity has any
ownership right, title, interest, claim in or lien on any of the Company's
Proprietary Assets. No current or former employee, officer, director or
consultant of the Company has any ownership right, right to use, title,
interest, claim in or lien on any of the Company's Proprietary Assets. The
Company has not granted and, to the Knowledge of the Company, there are not
outstanding, any options, licenses or agreements of any kind relating to any
Proprietary Asset of the Company, nor is the Company bound by or a party to any
option, license or agreement of any kind with respect to any of its Proprietary
Assets. No settlement agreements, consents, judgments, orders, forbearance to
sue or similar obligations limit or restrict the Company's rights in and to any
Proprietary Assets.

                  (ii) To the Knowledge of the Company, the Company has not
violated, misappropriated, diluted or infringed, and would not, by conducting
its business as currently proposed, violate, misappropriate, dilute or infringe,
any intellectual property right in any Proprietary Asset of any other person or
entity. There is no claim, action, suit, investigation or proceeding pending or,
to the Knowledge of the Company, threatened against the Company which would
affect in any way any of its Proprietary Assets by or before any court,
arbitrator or other Governmental Entity. To the Knowledge of the Company, no
third party has violated, misappropriated, diluted or infringed any intellectual
property right in any Proprietary Asset of the Company.

                  (iii) The Company takes all reasonable measures to protect the
confidentiality of their trade secrets including requiring third parties having
access thereto to execute written nondisclosure agreements. Each employee of the
Company hired after January 1, 1998 has signed an Employee Inventions and
Confidentiality Agreement substantially in the form attached hereto as SCHEDULE
D.

                  (iv) All material Proprietary Assets owned or used by the
Company have been duly maintained, are valid and subsisting, in full force and
effect and have not been cancelled, expired or abandoned. The execution,
delivery and performance by the Company of this Agreement or the Registration
Rights Agreement, or the consummation of the transactions contemplated hereby or
thereby will not result in the loss or impairment of the Company's rights to own
or use any of the Proprietary Assets, nor will such consummation require the
consent of any third party in respect of any Proprietary Assets.

                  (v) Except for Microsoft Corporation's SQL product, which
Microsoft Corporation has licensed to the Company (with rights to further
sublicense such software), the

                                      -6-

<PAGE>

Company's software products (the "PROPRIETARY SOFTWARE") were either developed
(a) by employees of the Company within the scope of their employment; (b) by
independent contractors as "works-made-for-hire," as that term is defined under
Section 101 of the United States Copyright Act, 17 U.S.C. ss. 101, pursuant to
written agreement; or (c) by third parties who have assigned all of their rights
therein to the Company pursuant to a written agreement. No former or present
employees, officers or directors of the Company, or any other third parties
retain any rights of ownership or use of the Proprietary Software, and no
employees or third parties who have developed or participated in the development
of the Proprietary Software have any claims to any moral rights therein.

                  (g) FINANCIAL STATEMENTS. The Company has furnished to each of
the requesting Purchasers a complete and correct copy of the balance sheet of
the Company at September 30, 2001, and statements of income for the period from
January 1, 2001 through September 30, 2001 (collectively, the "FINANCIAL
STATEMENTS"). The Financial Statements are complete and correct, are in
accordance with the books and records of the Company and present fairly in all
material respects the financial condition and results of operations of the
Company, at the dates and for the periods indicated, and have been prepared in
accordance with generally accepted accounting principles ("GAAP") consistently
applied, except that the unaudited Financial Statements may not be in accordance
with GAAP because of the absence of footnotes normally contained therein and are
subject to normal year-end adjustments which in the aggregate are not expected
to be material.

                  (h) ABSENCE OF UNDISCLOSED LIABILITIES. The Company does not
have any liability (whether known or unknown and whether absolute or
contingent), except for (a) liabilities shown on the face of the Financial
Statements and (b) liabilities that have arisen since September 30, 2001 in the
ordinary course of business that are not material.

                  (i) ABSENCE OF CHANGES. Since September 30, 2001, the Company
has conducted its business in the ordinary course, consistent with past practice
and there has not been any event or condition which has had or would be
reasonably expected to have, individually or in the aggregate, a Material
Adverse Effect.

                  (j) CONTRACTS. The Company does not have and is not bound by
any contract, agreement, lease or commitment, other than (i) contracts for the
purchase of supplies and services or the licensing of technology that were
entered into in the ordinary course of business that do not involve more than
$250,000 per year and do not extend for more than one year, (ii) sales contracts
entered into in the ordinary course of business, (iii) the leases for the
Company's office or other space, (iv) contracts terminable at will by the
Company on no more than 30 days' notice without cost or liability to the
Company, (v) an agreement with Microsoft Corporation, dated as of April 12,
2000, or (vi) other contacts the loss of which would not have a Material Adverse
Effect. Except for (i) an engineering and marketing agreement, dated as of April
12, 2000, between the Company and Microsoft Corporation, (ii) a warrant, dated
as of April 14, 2000, granting Microsoft Corporation the right to purchase
common stock of the Company under certain conditions and (iii) an agreement with
Microsoft Corporation, pursuant to which the Company licenses and has the
further right to sublicense Microsoft's SQL product, the Company has provided
the Purchasers with a copy of all its material contracts. To the

                                      -7-

<PAGE>

Knowledge of the Company, all of the contracts to which it is a party are valid
and binding and are in full force and effect as of the date of this Agreement.

                  (k) REGISTRATION RIGHTS. Other than the Registration Rights
Agreement, the Series AA Registration Rights Agreement, the Series BB
Registration Rights Agreement, the Stockholders Agreement and the piggyback
registration rights granted pursuant to the Purchase Agreement listed in
paragraph 4 of SCHEDULE C, the Company has not granted any registration rights
to any party for any of its securities.

                  (l) COMPLIANCE WITH LAWS. The Company and each Subsidiary are
in compliance in all material respects with all applicable Laws. All securities
issued by the Company prior to the date hereof have been issued in transactions
exempt from the registration requirements of Section 5 of the Securities Act.

                  (m) OFFERING OF SHARES. Neither the Company nor any Person
acting on its behalf has taken or will take any action (including, without
limitation, any offering of any securities of the Company under circumstances
which would require, under the Securities Act, the integration of such offering
with the offering and sale of the Shares) which might reasonably be expected to
subject the offering, issuance or sale of the Shares to the registration
requirements of the Securities Act. Subject to the continuing accuracy of the
Purchasers' representations in Section 4, the offer, sale and issuance of the
Shares and the Conversion Shares in conformity with the terms of this Agreement
and the Amended Certificate constitute or will constitute transactions exempt
from the registration requirements of Section 5 of the Securities Act.

                  (n) BROKERS. Except for fees and commissions payable to Credit
Suisse First Boston Corporation by the Company, no broker, finder or investment
banker is entitled to any brokerage, finder's or other fee or commission from
any party in connection with the transactions contemplated by this Agreement
based upon arrangements made by or on behalf of the Company.

                  (o) INSURANCE COVERAGE. The Company maintains in full force
and effect insurance coverage that the Company reasonably believes to be
adequate against all liabilities, claims and risks against which it is customary
for comparably situated companies to insure.

                  (p) EMPLOYEES. To the Company's Knowledge, no executive, key
employee, or group of employees has any plans to terminate employment with the
Company. The Company is in compliance in all material respects with all
applicable laws respecting employment and employment practices and terms and
conditions of employment.

                  (q) ERISA. The Company does not have or otherwise contribute
to or participate in any employee benefit plan subject to Title IV of ERISA.

                  (r) ENVIRONMENTAL MATTERS. The Company is not in violation of
any statute, rule, regulation, decision or order of any governmental agency or
body or any court, domestic or foreign, relating to the use, disposal or release
of hazardous or toxic substances or relating to the protection or restoration of
the environment or human exposure to hazardous or toxic substances
(collectively, "ENVIRONMENTAL LAWS"), does not own or operate any real property
contaminated with any substance that is subject to any Environmental Laws, is
not liable for any off-site

                                      -8-

<PAGE>

disposal or contamination pursuant to any Environmental Laws, and is not subject
to any claim relating to any Environmental Laws, which violation, contamination,
liability or claim would individually or in the aggregate have a Material
Adverse Effect; and the Company is not aware of any pending investigation that
might lead to such a claim.

                  (s) AFFILIATED TRANSACTIONS. Other than the Stockholders'
Agreement and the side letters with holders of the Company's Series A through E
Preferred Stock dated the date hereof, the Company is not, nor has it been, a
party to or bound by any contract, agreement, lease or commitment with any of
the Affiliates of the Company, other than on arms-length terms which are no less
favorable to the Company than those which could be obtained with a third party
which is not an Affiliate of the Company and no Affiliate of the Company owns or
otherwise has any rights to or interests in any asset, tangible or intangible,
which is used in the conduct of the Company's business.

                  (t) NO ILLEGAL PAYMENTS. In connection with the conduct of the
Company's business, none of the Company nor any of their directors or officers
nor, to the Company's Knowledge, any of their employees or agents, has (x)
directly or indirectly given or agreed to give any illegal gift, contribution,
payment or similar benefit to any supplier, customer, governmental official or
employee or other person who was, is or may be in a position to help or hinder
the Company (or assist in connection with any actual or proposed transaction) or
made or agreed to make any illegal contribution, or reimbursed any illegal
political gift or contribution made by any other person, to any candidate for
federal, state, local or foreign public office (i) which might subject the
Company to any damage or penalty in any civil, criminal or governmental
litigation or proceeding or (ii) the non-continuation of which has had or might
have a Material Adverse Effect or (y) established or maintained any unrecorded
fund or asset or made any false entries on any books or records for any purpose.

                  (u) DISCLOSURE. The representations and warranties contained
in this Section 3 (including any schedules and exhibits required to be delivered
by the Company to the Purchasers pursuant to this Agreement) and any certificate
furnished or to be furnished by the Company to the Purchasers do not contain and
on the date of the Closing will not contain any untrue statement of a material
fact or omit to state any material fact necessary in order to make the
statements and information contained in this Section 3 not misleading.

                  4. REPRESENTATIONS AND WARRANTIES OF PURCHASERS. Each of the
Purchasers severally but not jointly hereby represents and warrants to the
Company as follows:

         (a) DUE INCORPORATION. Each Purchaser that is not an individual is duly
organized or duly formed, validly existing and in good standing under the laws
of its jurisdiction of organization, with all requisite power and authority to
own, lease and operate its properties and to carry on its business as they are
now being owned, leased, operated and conducted.

         (b) DUE AUTHORIZATION. Each Purchaser that is not an individual has
full power and authority to enter into this Agreement and the Registration
Rights Agreement and to consummate the transactions contemplated hereby and
thereby. The execution, delivery and performance by such Purchaser of this
Agreement and the Registration Rights Agreement have been duly and validly
approved by its governing body empowered to authorize the transactions
contemplated

                                      -9-

<PAGE>

by this Agreement and the Registration Rights Agreement and no other actions or
proceedings on the part of such Purchaser are necessary to authorize this
Agreement, the Registration Rights Agreement and the transactions contemplated
hereby and thereby.

         (c) DUE EXECUTION; BINDING EFFECT. Such Purchaser has validly executed
and delivered this Agreement and has duly and validly executed and delivered (or
prior to or at the Closing will duly and validly execute and deliver) the
Registration Rights Agreement. This Agreement constitutes legal, valid and
binding obligations of such Purchaser and such Purchaser's Related Agreements
upon execution and delivery by such Purchaser (as applicable) will constitute
legal, valid and binding obligations of such Purchaser, in each case,
enforceable in accordance with their respective terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, moratorium,
reorganization or similar laws in effect which affect the enforcement of
creditors' rights generally and by equitable limitations on the availability of
specific remedies.

         (d) CONSENTS AND APPROVALS; AUTHORITY RELATIVE TO THIS AGREEMENT.

                  (i) No consent, authorization or approval of, filing or
registration with, or cooperation from, any Governmental Authority or any other
Person not a party to this Agreement is necessary in connection with the
execution, delivery and performance by such Purchaser of this Agreement and the
Registration Rights Agreement and the consummation by such Purchaser of the
transactions contemplated hereby and thereby.

                  (ii) The execution, delivery and performance by such Purchaser
of this Agreement and the Registration Rights Agreement do not and will not (1)
violate any Law applicable to such Purchaser; (2) violate or conflict with,
result in a breach or termination of, constitute a default or give any third
party any additional right (including a termination right) under, permit
cancellation of, result in the creation of any Lien upon any of the assets or
properties of such Purchaser under, or result in or constitute a circumstance
which, with or without notice or lapse of time or both, would constitute any of
the foregoing under, any contract to which Purchaser is a party or by which such
Purchaser or any of its assets or properties are bound; (3) permit the
acceleration of the maturity of any indebtedness of such Purchaser or
indebtedness secured by its assets or properties; or (4) for each Purchaser that
is not an individual, violate or conflict with any provision of such Purchaser's
organizational documents.

         (e) BROKERS. No broker, lender or investment banker is entitled to any
brokerage, lender's or other fee or commission from any party in connection with
the transactions contemplated by this Agreement based on arrangements made by or
on behalf of such Purchaser.

         (f) PURCHASE FOR INVESTMENT. Such Purchaser is purchasing the Shares
hereunder for investment without any intent of the distribution thereof within
the meaning of the Securities Act.

         (g) ACCREDITED INVESTOR. Such Purchaser is an "accredited investor"
within the meaning of Regulation 501(a) under the Securities Act and is able to
bear the economic risk of acquisition of the Shares, can afford to sustain a
total loss on such investment, and has such knowledge and experience in
financial and business matters that it is capable of evaluating the

                                      -10-

<PAGE>

merits and risk of the proposed investment. Such Purchaser has been furnished
the opportunity to ask questions of and receive answers from representatives of
the Company concerning the business and financial affairs of the Company.

                  5. COVENANTS.

         (a) FINANCIAL INFORMATION. 1. As soon as practicable after the end of
each fiscal year of the Company, and in any event within 120 days thereafter,
upon the request of such Purchaser, the Company shall furnish to each Purchaser
that holds (together with its Affiliates) at least 500,000 Shares, an audited
balance sheet and income statement of the Company (the "FINANCIAL INFORMATION")
as at the end of such fiscal year, prepared in accordance with GAAP consistently
applied.

                  (2) As soon as practicable after the end of the first, second
and third quarterly accounting periods in each fiscal year of the Company, and
in any event within 60 days thereafter, upon the request of such Purchaser, the
Company shall furnish to each Purchaser that holds (together with its
Affiliates) at least 500,000 Shares, unaudited Financial Information for such
period and for such fiscal year to date, prepared in accordance with GAAP
consistently applied, subject to changes resulting from normal year-end audit
adjustments, and except that such Financial Information need not contain the
notes required by GAAP.

                  (3) Each Purchaser acknowledges that any information obtained
by such Purchaser pursuant to this Section 5(a) that may be proprietary to the
Company or otherwise confidential shall not be disclosed (other than as required
by law or by Section 5(b)) without the prior written consent of the Company.
Each Purchaser further acknowledges and understands that any information so
obtained that may be considered "inside" non-public information shall not be
utilized by such Purchaser in connection with purchases and/or sales of the
Company's securities except in compliance with applicable state and federal
antifraud statutes. The Company may exclude a Purchaser from the distribution of
the information to be delivered pursuant hereto if the Board of Directors
determines in good faith upon advice of counsel that such exclusion is
reasonably necessary to preserve attorney-client privilege or to protect other
similar confidential information. The rights and obligations of the parties
pursuant to this Section 5(a) shall terminate upon the closing of an Initial
Public Offering.

         (b) BOARD OBSERVER. So long as Putnam holds at least 2,000,000 Shares,
Putnam shall be entitled to designate one non-voting observer (the "NON-VOTING
OBSERVER") to attend (but not vote at) all meetings of the Board of Directors
and all committees thereof. The Non-Voting Observer shall have the same access
to information concerning the business and operations of the Company and at the
same time as the directors of the Company, except for such information that the
Company reasonably determines it cannot distribute for confidentiality reasons,
and shall be entitled to ask questions of the Board of Directors, but shall not
be entitled to vote. Putnam's right to nominate the Non-Voting Observer and all
rights of the Putnam Non-Voting Observer shall terminate upon the earlier of (a)
written notice of termination by Putnam to the Company or (b) the date the
Company requests the Commission to accelerate the effectiveness of the Company's
registration statement relating to the Initial Public Offering. The rights of
any other Purchasers, including the rights to have access to the books and
records of the Company and other information as provided above, shall terminate
as of the date of the Company's final

                                      -11-

<PAGE>

prospectus relating to the Initial Public Offering. Subject to any other
agreement between the parties, Putnam and any other Purchaser that receives
information agrees that the information provided by the Company, officers,
directors and employees pursuant to Section 5(a) and Section 5(b) will be used
solely for the purpose of evaluating such Purchaser's investment in the Shares
and the Conversion Shares, as applicable, and that such information will be kept
strictly confidential by such Purchaser; PROVIDED that the foregoing obligation
of such Purchaser shall not (a) relate to any information that (i) is or becomes
generally available other than as a result of unauthorized disclosure by such
Purchaser or by persons to whom such Purchaser has made such information
available, (ii) is already in such Purchaser's possession, provided that such
information is not subject to another confidentiality agreement with or other
obligation of secrecy to the Company or (iii) is or becomes available to such
Purchaser on a non-confidential basis from a third party that is not, to such
Purchaser's knowledge, bound by any other confidentiality agreement with the
Company or its subsidiaries, or (b) prohibit disclosure of any information if
required by Law or the rules of any stock exchange. Putnam and each other
Purchaser hereby acknowledges that it is aware that the United States securities
laws prohibit any person who has received from an issuer or any Affiliate
thereof any material, non-public information from purchasing or selling
securities of such issuer or from communicating such information to any other
person under circumstances in which it is reasonably foreseeable that such
person is likely to purchase or sell such securities.

         (c) AMENDED CERTIFICATE. The Company shall, prior to the Closing, cause
the Amended Certificate to be filed with the Secretary of State of the State of
Delaware.

         (d) COOPERATION. Each of the Purchasers and the Company agrees to use
its reasonable best efforts to take, or cause to be taken, all such further
actions as shall be necessary to make effective and consummate the transactions
contemplated by this Agreement.

         (e) RESERVE SHARES. The Company will at all times reserve and keep
available, solely for issuance and delivery upon conversion of the Shares, the
number of shares of common stock from time to time issuable upon conversion of
all Shares at the time outstanding (the "CONVERSION SHARES"). All Conversion
Shares shall be duly authorized and, when issued upon such conversion in
accordance with the Amended Certificate, shall be validly issued, fully paid and
nonassessable.

         (f) RESTRICTIONS ON TRANSFER. The Purchasers will not, prior to the
earlier of (a) December 31, 2004 or (b) the time of the closing of the Initial
Public Offering, sell, transfer, assign, convey, gift, mortgage, pledge,
encumber, hypothecate, or otherwise dispose of, directly or indirectly,
("TRANSFER") any of the Shares or any Conversion Shares except for (i) Transfers
between and among the Purchasers and their Affiliates provided such Transfer is
in accordance with the transfer restrictions applicable to the Shares or the
Conversion Shares under federal and state securities laws and the Affiliate
transferee agrees to be bound by the restrictions applicable to such Shares or
Conversion Shares, including without limitation the agreements set forth in this
Section 5(f), and (ii) Transfers (x) pursuant to a bona fide tender or exchange
offer made pursuant to a merger or other agreement approved by the Board of
Directors to acquire securities of the Company, (y) pursuant to any cash merger,
or other business combination transaction to which the Company is a party or
involved in which the common stock of the Company's stockholders is exchanged
for cash upon consummation of such merger or other business

                                      -12-

<PAGE>

combination or (z) agreed to in writing by the Company. Notwithstanding any
other provision of this Section 5(f), no Purchaser shall avoid the provisions of
this Section 5(f) by making one or more transfers to one or more Affiliates and
then disposing of all or any portion of such Purchaser's interest in any such
Affiliate.

         (g) PREEMPTIVE RIGHT. If at any time the Company desires to issue or
sell any shares of its capital stock or securities convertible, exercisable or
exchangeable for the Company's capital stock (other than Non-Preemptive Shares)
(the "ADDITIONAL SHARES") to any Person, the Company shall give a written notice
(the "ISSUANCE NOTICE") to the Purchasers setting forth the proposed terms of
the sale of such Additional Shares and the quantity of Additional Shares to be
issued, the proposed issuance date and the price at which such Additional Shares
shall be issued. Each of the Purchasers shall have the option to purchase the
number of Additional Shares necessary to maintain such Purchaser's percentage of
issued and outstanding shares of the Company at the time of the Issuance Notice,
which option may be exercised by giving written notice to the Company (the
"RESPONSE NOTICE") within 14 days of the Issuance Notice that contains an
agreement to purchase all or any portion of the Additional Shares to which such
Purchaser is entitled to purchase. Failure by a Purchaser to give the Response
Notice to the Company within such 14-day period shall be deemed to be a
rejection of such option. For a period of 180 days after any Issuance Notice,
the Company shall have the right to issue or sell to any Person (a "THIRD PARTY
BUYER") up to the number of Additional Shares specified in the Issuance Notice
less the number of Additional Shares subscribed for pursuant to duly tendered
Response Notices at the same price and on other terms not materially less
favorable to the Company than as specified in the Issuance Notice. At the time
of the closing of the sale of the Additional Shares to one or more Third Party
Buyers, the Company shall sell to such Purchaser and such Purchaser shall
purchase the Additional Shares that such Purchaser agreed to purchase in the
Response Notice, at the price and on the terms set forth in the Issuance Notice.
If at the end of the 180th day following any Issuance Notice, the Company has
not completed the issuance described in the Issuance Notice, each Purchaser that
has provided a Response Notice shall be released from its obligations
thereunder. If the Company desires to issue or sell Additional Shares, (i) after
such 180-day period, (ii) except in connection with an Initial Public Offering,
on terms materially less favorable to the Company than as specified in the
Issuance Notice, (iii) except in connection with an Initial Public Offering, at
a price less than the price specified in the Issuance Notice or (iv) except in
connection with an Initial Public Offering, in a quantity greater than as
specified in the Issuance Notice, the Company must again comply with this
Section 5(g). If the Company desires to take any of the actions set forth in
clauses (ii), (iii) or (iv) of the prior sentence in connection with an Initial
Public Offering, each Purchaser, at its option, shall be released from its
obligations under its Response Notice. The rights and obligations of the parties
pursuant to this Section 5(g) shall terminate upon the closing of an Initial
Public Offering.

         (h) COMPLIANCE WITH SECURITIES LAWS. Such Purchaser understands that
the Shares and the Conversion Shares will not be registered under the Securities
Act or applicable state securities laws and agrees not to sell, pledge or
otherwise transfer any of the Shares and Conversion Shares in the absence of
such registration or an opinion of counsel reasonably satisfactory to the
Company that such registration is not required, except that the requirement of a
legal opinion will not apply to transfers by Putnam to any of its Affiliates.
Except as set forth

                                      -13-

<PAGE>

in the Registration Rights Agreement, such Purchaser acknowledges that the
Company is not required to register the Shares or the Conversion Shares.

                  6. CONDITIONS.

         (a) CONDITIONS TO OBLIGATIONS OF THE PURCHASERS. The obligations of the
Purchasers to consummate the transactions contemplated hereby shall be subject
to the satisfaction or waiver at or prior to the Closing of each of the
following conditions:

                  (i) No statute, rule or regulation or order of any court or
administrative agency shall be in effect which prohibits the consummation of the
transactions contemplated hereby;

                  (ii) The Company shall have performed, satisfied and complied
in all material respects with all of its covenants and agreements set forth in
this Agreement to be performed, satisfied and complied with prior to or at the
Closing;

                  (iii) The representations and warranties of the Company in
Section 3 shall be true and correct in all material respects as of the date of
Closing;

                  (iv) The Company shall have executed and delivered to each of
the Purchasers the Registration Rights Agreement;

                  (v) The Company shall have obtained sufficient waivers of
pre-emptive rights from all holders of capital stock who possess such rights so
as to allow the consummation of the transactions contemplated by this Agreement.

                  (vi) The Amended Certificate shall have been duly filed with
the Secretary of State of the State of Delaware in accordance with the laws of
the State of Delaware and the Amended Certificate shall be in full force and
effect;

                  (vii) Mayer, Brown, Rowe & Maw shall have delivered an opinion
in form and substance reasonably satisfactory to Purchasers;

                  (viii) The Company shall have delivered a good standing
certificate for the Company (or a copy thereof) to each of the Purchasers;

                  (ix) The Company shall have received all consents,
authorizations, and approvals necessary to complete the transactions
contemplated hereby, including, without limitation, the Required Consents.

                  (x) The Company shall have delivered to each Purchaser a
certificate of the Company, dated the date of the Closing and executed by the
Chief Executive Officer of the Company, certifying as to the fulfillment of the
conditions specified in Sections 6(a)(ii), (iii), (vi), (xii) and (xiii) of this
Agreement;

                  (xi) The Company shall have delivered to each Purchaser a
certificate of the Company, dated the date of the Closing and executed by the
Secretary of the Company,

                                      -14-

<PAGE>

certifying: (a) the corporate proceedings taken by the Company's Board of
Directors and, if required, stockholders approving this Agreement and the
Registration Rights Agreement and the transactions contemplated hereby and
thereby; (b) the Amended Certificate; and (c) the By-laws of the Company;

                  (xii) No claim, action, cause of action, suit, litigation,
arbitration, investigation, hearing, charge, complaint, demand, notice or
proceeding to, from, by or before any Governmental Authority shall be pending or
threatened wherein an unfavorable injunction, judgment, order, decree, ruling,
or charge would (i) prevent consummation of any of the transactions contemplated
by the Agreement or (ii) cause any of the transactions contemplated by the
Agreement to be rescinded following consummation (and no such injunction,
judgment, order, decree, ruling, or charge shall be in effect); and

                  (xiii) There shall not have occurred any event, circumstances,
condition, fact, effect, or other matter which has had or would reasonably be
expected to have a Material Adverse Effect.

         (b) CONDITIONS TO OBLIGATIONS OF THE COMPANY.  The obligations of the
Company to consummate the transactions contemplated hereby shall be subject to
the satisfaction or waiver at or prior to the Closing of each of the following
conditions:

                  (i) No statute, rule or regulation or order of any court or
administrative agency shall be in effect which prohibits the consummation of the
transactions contemplated hereby;

                  (ii) Each of the Purchasers shall have executed and delivered
to the Company the Registration Rights Agreement;

                  (iii) The representations and warranties of the Purchasers in
Section 4 shall be true and correct in all material respects as of the date of
Closing;

                  (iv) The Company shall have received the Required Consents;
and

                  (v) The Purchasers shall have performed, satisfied and
complied in all material respects with all of their covenants and agreements set
forth in this Agreement to be performed, satisfied and complied with prior to or
at the Closing Date.

                  7. SURVIVAL OF REPRESENTATIONS AND WARRANTIES.

         The representations and warranties of the parties contained in this
Agreement shall expire on the 18-month anniversary of the Closing, except for
those representations and warranties contained in Sections 3(a) through 3(d)
which shall expire on the later of (i) the 18-month anniversary of the Closing
or (ii) the closing of an Initial Public Offering. After the expiration of such
period, any claim by a party based upon any such representation or warranty
shall be of no further force and effect, except to the extent a party has given
notice to the other party of a claim for breach of any such representation or
warranty prior to the expiration of such period, in which event any
representation or warranty to which such claim relates shall survive with
respect to such claim until such claim is resolved. The covenants and agreements
of the parties hereto

                                      -15-

<PAGE>

contained in this Agreement shall survive the Closing until performed in
accordance with their terms.

                  8. RESTRICTIVE LEGENDS. Each certificate representing any
Shares or Conversion Shares shall bear legends in substantially the following
form:

         THE SECURITIES EVIDENCED BY THIS CERTIFICATE SHALL BE CONVERTIBLE INTO
         THE COMPANY'S COMMON STOCK IN THE MANNER AND ACCORDING TO THE TERMS SET
         FORTH IN THE CERTIFICATE OF INCORPORATION. THE COMPANY IS AUTHORIZED TO
         ISSUE MORE THAN ONE CLASS OR SERIES OF STOCK. AS REQUIRED UNDER
         DELAWARE LAW, THE COMPANY SHALL FURNISH TO ANY HOLDER UPON REQUEST AND
         WITHOUT CHARGE, A FULL SUMMARY STATEMENT OF THE DESIGNATIONS, VOTING
         RIGHTS, PREFERENCES, LIMITATIONS AND SPECIAL RIGHTS OF THE SHARES OF
         EACH CLASS OR SERIES AUTHORIZED TO BE ISSUED BY THE COMPANY SO FAR AS
         THEY HAVE BEEN FIXED AND DETERMINED AND THE AUTHORITY OF THE BOARD OF
         DIRECTORS TO FIX AND DETERMINE THE DESIGNATIONS, VOTING RIGHTS,
         PREFERENCES, LIMITATIONS AND SPECIAL RIGHTS OF THE CLASSES AND SERIES
         OF SECURITIES OF THE COMPANY.

         THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR UNDER
         ANY APPLICABLE STATE LAWS. THE SHARES REPRESENTED BY THIS CERTIFICATE
         HAVE BEEN ACQUIRED BY THE REGISTERED OWNER HEREOF FOR INVESTMENT AND
         NOT WITH A VIEW TO OR FOR SALE IN CONNECTION WITH ANY DISTRIBUTION
         THEREOF WITHIN THE MEANING OF THE 1933 ACT. THE SHARES MAY NOT BE SOLD,
         PLEDGED, TRANSFERRED OR ASSIGNED EXCEPT IN A TRANSACTION WHICH IS
         EXEMPT UNDER THE PROVISIONS OF THE 1933 ACT OR ANY APPLICABLE STATE
         SECURITIES LAWS, OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR
         IN A TRANSACTION OTHERWISE IN COMPLIANCE WITH APPLICABLE FEDERAL AND
         STATE SECURITIES LAWS.

         THE SALE, PLEDGE, TRANSFER, ASSIGNMENT OR OTHER DISPOSITION OF THE
         SHARES REPRESENTED BY THIS CERTIFICATE IS RESTRICTED BY AND SUBJECT TO
         THE PROVISIONS OF A PURCHASE AGREEMENT DATED AS OF FEBRUARY 14, 2002, A
         COPY OF WHICH IS AVAILABLE UPON REQUEST FOR INSPECTION AT THE OFFICE'S
         OF THE COMPANY. ANY SUCH REQUEST SHOULD BE ADDRESSED TO THE SECRETARY
         OF THE COMPANY.

                  9. SUCCESSORS AND ASSIGNS; NO THIRD PARTY BENEFICIARIES. This
Agreement shall bind and inure to the benefit of the Company and the Purchasers
and the respective successors, permitted assigns, heirs and personal
representatives of the Company and the Purchasers;

                                      -16-

<PAGE>

PROVIDED that the Company may not assign its rights or obligations under this
Agreement to any Person without the prior written consent of the Purchasers, and
PROVIDED FURTHER that the Purchasers may not assign their rights or obligations
under this Agreement to any Person (other than an Affiliate) without the prior
written consent of the Company. This Agreement is intended for the benefit of
the parties hereto and their respective permitted successors and assigns, and is
not for the benefit of, nor may any provision hereof be enforced by, any other
person.

                  10. NOTICES. Each notice, demand, request, request for
approval, consent, approval, disapproval, designation or other communication
(each of the foregoing being referred to herein as a notice) required or desired
to be given or made under this Agreement shall be in writing (except as
otherwise provided in this Agreement), and shall be effective and deemed to have
been received (i) when delivered in person, (ii) when sent by fax with receipt
acknowledged, (iii) five days after having been mailed by certified or
registered United States mail, postage prepaid, return receipt requested, or
(iv) the next business day after having been sent by a nationally recognized
overnight mail or courier service, receipt requested. Notices shall be addressed
as set forth below:

         If to Putnam:

                  Putnam Investment Management, LLC
                  Two Liberty Square
                  Boston, MA  02109
                  Attn:  John Verani
                  Facsimile:  (617) 292-1625

         with a copy to:

                  Ropes & Gray
                  One International Place
                  Boston, MA  02110
                  Attn:  Robert L. Nutt, Esq.
                  Facsimile:  (617) 951-7050

         If to any of the other Purchasers, at the address set forth under his
         name on SCHEDULE A.

         If to the Company:

                  CommVault Systems, Inc.
                  2 Crescent Place
                  Oceanport, New Jersey 07757
                  Attn:  N. Robert Hammer
                  Facsimile:  (732) 870-4514

         With a copy to:

                  Mayer, Brown, Rowe & Maw
                  190 S. LaSalle Street
                  Chicago, Illinois 60603

                                      -17-

<PAGE>

                  Attention: Philip J. Niehoff
                  Facsimile: (312) 701-7711

                  11. FURTHER ASSURANCES. At any time or from time to time after
the Closing, the Company, on the one hand, and the Purchasers, on the other
hand, agree to cooperate with each other, and at the request of the other party,
to execute and deliver any further instruments or documents and to take all such
further action as the other party may reasonably request in order to evidence or
effectuate the consummation of the transactions contemplated hereby and to
otherwise carry out the intent of the parties hereunder.

                  12. PUBLIC DISCLOSURE. Except as required by Law or the rules
of any stock exchange (in which case the Company shall give Putnam notice at
least 24 hours prior to any public announcement containing its name), no public
announcement or other publicity regarding the transactions referred to herein
shall be made by any of the Purchasers or the Company or any of their respective
Affiliates, officers, directors, employees, representatives or agents, without
the prior written agreement of the Purchasers and Company, in any case, as to
form, content, timing and manner of distribution or publication; PROVIDED,
HOWEVER, that nothing in this Section shall prevent such parties from (i)
discussing such transactions with those Persons whose approval, agreement or
opinion, as the case may be, is required for consummation or subsequent review
of such particular transaction or transactions or (ii) disclosing such
information about such transactions in a registration statement or prospectus in
connection with the Initial Public Offering or (iii) if the disclosing party is
a Purchaser, disclosing such Purchaser's investment herein provided that such
disclosure does not mention any other Purchaser by name and is approved by the
Company in writing. Each of the parties acknowledge and agree that there would
be no adequate remedy at Law if it fails to perform its obligations under this
Section 12 and accordingly agrees that each of the other parties, in addition to
any other remedy to which it may be entitled at Law or in equity, shall be
entitled to compel specific performance of the obligations of the first party
under this Section 12.

                  13. WAIVER AND AMENDMENT. With the written consent of the
Company and the record holders of 66 2/3% of the Conversion Shares, (i) the
obligations of the Company under this Agreement and the rights of the holders of
the Conversion Shares under this Agreement may be waived (either generally or in
a particular instance, either retroactively or prospectively, and either for a
specified period of time or indefinitely) or (ii) this Agreement may be amended,
changed, discharged or terminated. Notwithstanding the foregoing, (i) if any
waiver of any right or rights granted to a Purchaser under this Agreement would
uniquely affect such Purchaser, then such waiver may be approved or granted by
such Purchaser without the consent or approval of any other Purchaser and (ii)
if any waiver or amendment of any right or rights granted to a Purchaser under
this Agreement would adversely affect only a given Purchaser, then such
amendment or waiver may not be effected without the consent or approval of such
affected Purchaser. Neither this Agreement nor any provisions hereof may be
amended, changed, waived, discharged or terminated orally, but only by a signed
statement in writing.

                  14. ENTIRE AGREEMENT. This Agreement and the Registration
Rights Agreement constitute the entire agreement, and supersede all other prior
agreements and understandings, both written and oral, among the parties hereto
and their affiliates with respect to the matters set forth herein.

                                      -18-

<PAGE>

                  15. SEVERABILITY. If any provision of this Agreement shall be
held invalid, illegal or unenforceable, the validity, legality or enforceability
of the other provisions hereof shall not be affected thereby, and there shall be
deemed substituted for the provision at issue a valid, legal and enforceable
provision as similar as possible to the provision at issue.

                  16. CAPTIONS. The Section references herein are for
convenience of reference only, do not constitute part of this Agreement and
shall not be deemed to limit or otherwise affect any of the provisions hereof.

                  17. COUNTERPARTS. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original but all of which
shall constitute one and the same instrument.

                  18. GOVERNING LAW. This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Delaware.

                  19. WAIVER OF JURY TRIAL. THE COMPANY AND THE PURCHASERS
HEREBY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
ACTION, PROCEEDING OR LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY.

                  20. FEES AND EXPENSES. All legal fees and expenses incurred by
Ropes & Gray on behalf of Putnam in connection with the negotiation and drafting
of this Agreement and the transactions contemplated thereby shall be paid by the
Company, up to a total of $40,000. All other costs shall be borne by the party
incurring such cost or expense.

                  21. JOINT PARTICIPATION IN DRAFTING. Each party to this
Agreement has participated in the negotiation and drafting of this Agreement. As
such, the language used herein shall be deemed to be the language chosen by the
parties hereto to express their mutual intent, and no rule of strict
construction will be applied against any party to this Agreement.

                  22. MASSACHUSETTS BUSINESS TRUSTS. A copy of the Agreement and
Declaration of Trust of each Putnam fund or series investment company (each a
"FUND") that is a Massachusetts business trust is on file with the Secretary of
State of the Commonwealth of Massachusetts and notice is hereby given that this
Agreement is executed on behalf of the Trustees of the relevant Fund as Trustees
and not individually and that the obligations of this Agreement are not binding
upon any of the Trustees, officers or shareholders of the Fund individually but
are binding only upon the assets and property of such Fund.

                                     * * * *

                                      -19-

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered as of the day and year first written above.

                            COMMVAULT SYSTEMS, INC.

                            By: /S/ N. ROBERT HAMMER
                                ------------------------------------------------
                            Name: N. ROBERT HAMMER
                                  ----------------------------------------------
                            Title: PRESIDENT & CHIEF EXECUTIVE OFFICER
                                   ---------------------------------------------



                                                              PURCHASE AGREEMENT
<PAGE>

                            PUTNAM OTC AND EMERGING GROWTH FUND
                            PUTNAM FUNDS TRUST-PUTNAM TECHNOLOGY FUND
                            By Putnam Investment Management, LLC

                            By: /S/ JOHN R. VERANI
                                ------------------------------------------------
                            Name: JOHN R. VERANI
                                  ----------------------------------------------
                            Title: SENIOR VICE PRESIDENT
                                   ---------------------------------------------

                            TH LEE, PUTNAM INVESTMENT TRUST -
                            TH LEE, PUTNAM EMERGING OPPORTUNITIES PORTFOLIO
                            By TH Lee, Putnam Capital Management, LLC

                            By: /S/ JOHN R. VERANI
                                ------------------------------------------------
                            Name: JOHN R. VERANI
                                  ----------------------------------------------
                            Title: SENIOR VICE PRESIDENT
                                   ---------------------------------------------



                                                              PURCHASE AGREEMENT
<PAGE>

                            EMC INVESTMENT CORPORATION

                            By:/S/ ILLEGIBLE
                                ------------------------------------------------
                            Name:
                                ------------------------------------------------
                            Title:
                                 -----------------------------------------------
                            35 Parkwood Drive
                            Hopkinton, MA  01748
                            Attn: Office of the General Counsel
                            Fax: (508) 497-6915



                                                              PURCHASE AGREEMENT
<PAGE>

                            VAN WAGONER CROSSOVER FUNDS, L.P.

                            By:/S/ WILLIAM X. MINOR
                               -------------------------------------------------
                            Name: WILLIAM X. MINOR
                                  ----------------------------------------------
                            Title: VAN WAGONER CAPITAL MANAGEMENT LLC GENERAL
                                   PARTNER
                                   ---------------------------------------------
                            345 California Street
                            Suite 2450
                            San Francisco, CA 94104
                            Facsimile: (415) 835-5050

                            VAN WAGONER PRIVATE OPPORTUNITIES FUND, L.P.

                            By:/S/ WILLIAM X. MINOR
                               -------------------------------------------------
                            Name: WILLIAM X. MINOR
                                  ----------------------------------------------
                            Title: VAN WAGONER CAPITAL MANAGEMENT LLC GENERAL
                                   PARTNER
                                   ---------------------------------------------
                            345 California Street
                            Suite 2450
                            San Francisco, CA 94104
                            Facsimile: (415) 835-5050



                                                              PURCHASE AGREEMENT
<PAGE>

                            DRW VENTURE PARTNERS LP

                            By:  RBC Dain Rauscher Corporation, its
                            General Partner

                            By:/S/ MARY ZIMMER
                               -------------------------------------------------
                            Name: MARY ZIMMER
                                  ----------------------------------------------
                            Title: DIRECTOR OF FINANCE AND ADMINISTRATION,
                                   RBC CMS
                                   ---------------------------------------------
                            60 South 6th Street
                            Minneapolis, MN 55402
                            Attn: Mary Zimmer MS 54N2
                            Facsimile: (612) 373-1610



                                                              PURCHASE AGREEMENT
<PAGE>

                            WHEATLEY PARTNERS III, L.P.

                            By:  Wheatley Partners III LLC, its
                            General Partner

                            By:/S/ IRWIN LIEBER
                               -------------------------------------------------
                            Name: IRWIN LIEBER
                                ------------------------------------------------
                            Title: PRESIDEN
                                  ----------------------------------------------
                            80 Cuttermill Road, Suite 311
                            Great Neck, NY 11021
                            copy to:
                            825 Third Avenue, 32nd Floor
                            New York, NY 10022
                            Attn:  Lawrence Wagenberg
                            Facsimile:  (   )


                            WHEATLEY ASSOCIATES III, L.P.

                            By:  Wheatley Partners III LLC, its
                            General Partner

                            By:/S/ IRWIN LIEBER
                               -------------------------------------------------
                            Name: IRWIN LIEBER
                                 -----------------------------------------------
                            Title: PRESIDENT
                                  ----------------------------------------------
                            Same address as above


                            WHEATLEY FOREIGN PARTNERS III, L.P.

                            By:  Wheatley Partners III LLC, its
                            General Partner

                            By:/S/ IRWIN LIEBER
                               -------------------------------------------------
                            Name: IRWIN LIEBER
                                 -----------------------------------------------
                            Title: PRESIDENT
                                   ---------------------------------------------
                            Same address as above



                                                              PURCHASE AGREEMENT
<PAGE>

                            UBS CAPITAL AMERICAS II, LLC

                            By:  UBS Capital Americas, LLC, as advisor

                            By:/S/ ILLEGIBLE
                               -------------------------------------------------
                            Name:
                                 -----------------------------------------------
                            Title:
                                  ----------------------------------------------

                            By:/S/ MARC UNGER
                               -------------------------------------------------
                            Name: MARC UNGER
                                 -----------------------------------------------
                            Title: CHIEF FINANCIAL OFFICER
                                   ---------------------------------------------
                            299 Park Avenue, 34th Floor
                            New York, NY 10171
                            Fax:  (212) 821-6333



                                                              PURCHASE AGREEMENT
<PAGE>

                            AMAN VENTURES

                            By:/S/ WILLIAM J. BELL
                               -------------------------------------------------
                            Name: WILLIAM J. BELL
                                  ----------------------------------------------
                            Title: MANAGING PARTNER
                                  ----------------------------------------------
                            1500 Owl Creek Ranch Road
                            Aspen, CO  81611
                            Fax:  (970) 923-8855



                                                              PURCHASE AGREEMENT
<PAGE>

                            /S/ BILL RUSHER
                            ----------------------------------------------------
                            Bill Rusher
                            142 Sansome Street, 5th Floor
                            San Francisco, CA 94104
                            Fax:415-397-2842


                            /S/ FRANK JUSKA
                            ----------------------------------------------------
                            Frank Juska
                            142 Sansome Street, 5th Floor
                            San Francisco, CA 94104
                            Fax

                            /S/ MARC FRANCIS
                            ----------------------------------------------------
                            Mark Francis
                            765 Park Avenue
                            New York, NY  10021
                            Fax:  212-816-2176



                                                              PURCHASE AGREEMENT
<PAGE>

                            HFI PRIVATE EQUITY LTD.

                            By: /S/ T. BOGGESS
                                ------------------------------------------------
                            Name: T. BOGGESS
                                  ----------------------------------------------
                            Title: ALTERNATE DIRECTOR
                                   ---------------------------------------------


                            By: /S/ DAVID W.J. ATWOOD
                                ------------------------------------------------
                            Name: DAVID W.J. ATWOOD
                                  ----------------------------------------------
                            Title: ALTERNATE DIRECTOR
                                   ---------------------------------------------
                            Clarenden House
                            2 Church Street
                            Hamilton HM CX
                            Bermuda



                                                              PURCHASE AGREEMENT
<PAGE>

                                   SCHEDULE A

                                   PURCHASERS
<TABLE>
<CAPTION>
NAME AND ADDRESS OF PURCHASER                      NUMBER OF SHARES         PRICE
-----------------------------                      ----------------         -----
<S>                                                     <C>              <C>
Putnam OTC and Emerging Growth Fund                     1,277,547        $ 3,999,999.66
c/o Putnam Investment Management, LLC
Two Liberty Square
Boston, MA  02109

TH Lee, Putnam Investment Trust                         1,916,321        $ 6,000,001.05
TH Lee, Putnam Emerging Opportunities Portfolio
c/o Putnam Investment Management, LLC
Two Liberty Square
Boston, MA  02109

Putnam Funds Trust - Putnam Technology Fund               319,387        $ 1,000,000.70
c/o Putnam Investment Management, LLC
Two Liberty Square
Boston, MA  02109

Van Wagoner Private Opportunities Fund, L.P.              638,774        $ 2,000,001.39
345 California Street
Suite 2450
San Francisco, CA 94104

Van Wagoner Crossover Fund, L.P.                          638,774        $ 2,000,001.39
345 California Street
Suite 2450
San Francisco, CA 94104

Wheatley Partners III                                     446,162        $ 1,396,933.22
80 Cuttermill Road, Suite 311
Great Neck, NY 11021
copy to:
825 Third Avenue, 32nd Floor
New York, NY 10022
Attn:  Lawrence Wagenberg

Wheatley Associates III                                    95,860        $   300,137.66
address same as above
</TABLE>



                                                              PURCHASE AGREEMENT
                                      A-1

<PAGE>

<TABLE>
<CAPTION>
NAME AND ADDRESS OF PURCHASER                      NUMBER OF SHARES         PRICE
-----------------------------                      ----------------         -----
<S>                                                     <C>              <C>
Wheatley Foreign Partners III                              96,752        $   302,930.51
address same as above

UBS Capital Americas II, LLC                              638,774        $ 2,000,001.39
299 Park Avenue, 34th Floor
New York, NY 10171

HFI Private Equity Ltd                                    373,106        $ 1,168,194.89
Clarenden House, 2 Church Street
Hamilton HM CX
Bermuda

Aman Ventures                                             245,352        $   768,197.11
1500 Owl Creek Ranch Road
Aspen, CO  81611

Mark Francis                                                6,388        $    20,000.83
765 Park Avenue
New York, NY  10021

EMC Investment Corporation                                638,774        $ 2,000,001.39
35 Parkwood Drive
Hopkinton, MA  01748

DRW Ventures                                                7,128        $    22,317.77
60 South 6th Street
Minneapolis, MN 55402

Bill Rusher                                                 1,003        $     3,140.39
142 Sansome Street, 5th Floor
San Francisco, CA 94104

Frank Juska                                                 1,003        $     3,140.39
142 Sansome Street, 5th Floor
San Francisco, CA 94104

TOTAL SERIES CC                                         7,341,105        $22,984,999.76
</TABLE>




                                                              PURCHASE AGREEMENT
                                      A-2

<PAGE>

                                   SCHEDULE B

                                  SUBSIDIARIES

CommVault Systems (Canada) Inc., a Canadian corporation
CommVault Systems Mexico S de RL de CV, a Mexican company
CommVault Holding Company BV, a Netherlands company
CommVault Systems Netherlands BV, a Netherlands company


                                                              PURCHASE AGREEMENT
                                      B-1

<PAGE>
                                   SCHEDULE C

         1. Employment Agreement, dated as of January 20, 1999 and amended as of
May 3, 2001, between the Company and N. Robert Hammer, under which Mr. Hammer
has received options to purchase 5,622,400 shares of common stock.

         2. Corporate Change of Control Agreements, between the Company and (i)
Louis Miceli, (ii) Brian McAteer, (iii) Larry Cormier, (iv) Al Bunte; (v) David
West; (vi) Bernardus Veldhoen and (vii) William Beattie.

         3. Stock Plan dated as of May 22, 1996, pursuant to which the Company
is authorized to issue options to purchase 12,950,000 shares of its common stock
of which 12,157,406 shares have been granted.

         4. The Company entered into an agreement with Northern Concepts
Incorporated ("NCI"), dated as of May 2000 pursuant to which 285,000 shares of
the Company's common stock was issued in consideration for the acquisition of
the business of NCI by the Company.

         5.Preferred Stockholders have (i) conversion rights, pursuant to the
Amended Certificate, and (ii) preemptive rights pursuant to (a) the
Stockholders' Agreement; (b) the Series AA Purchase Agreement and (c) the Series
BB Purchase Agreement.

         6. A Warrant to purchase up to 2,616,933 shares of common stock was
issued to Microsoft Corporation in connection with the Series AA Purchase
Agreement.

         7. A Warrant to purchase up to 4,464,536 shares of common stock was
issued to EMC Investment Corporation in connection with the Series BB Purchase
Agreement.


                                                              PURCHASE AGREEMENT
                                      C-1

<PAGE>

                                   SCHEDULE D

                         CORPORATE COMPLIANCE AGREEMENT
              EMPLOYEE INVENTION, CONFIDENTIALITY, NON-COMPETITION,
                      NON-SOLICITATION AND ETHICS AGREEMENT

         THIS AGREEMENT is made between me, the undersigned, and CommVault
Systems, Inc. and on behalf of CommVault Systems, Inc. and its affiliated
companies as they exist from time to time (hereafter referred to collectively as
"CommVault"), and in consideration of my employment by CommVault and in
consideration for the compensation to be paid to me in connection with this
employment:

         1. DUTIES. I shall render faithful and efficient services to CommVault
and perform exclusively for CommVault such duties as may be designated by
CommVault from time to time, which may include the functions of inventing,
discovering and developing new and novel devices, methods, and principles
relating to the business, research, and development of CommVault.

         2. DISCLOSURE OF INVENTIONS. I shall promptly disclose to CommVault in
writing all inventions (including, but not limited to, new contributions,
concepts, ideas, developments, discoveries, processes, formulas, methods,
compositions, techniques, articles, machines, and improvements), all original
works of authorship and all related know-how ("Inventions"), whether or not
patentable, copyrightable or protectable as trade secrets, conceived or made by
me, alone or with others, during the period of my employment with CommVault and,
in the case of clauses (b) and (c) below, during the period of my employment by
CommVault and at any time after I cease to be employed by CommVault for whatever
reason, which (a) relate in any manner to the actual or anticipated business,
research, or development of CommVault, (b) are developed using equipment,
supplies, facilities, trade secret or confidential information of CommVault, or
(c) result from work performed by me or work supervised by me for CommVault.

         3. ASSIGNMENT OF INVENTIONS. I shall assign and do hereby assign to
CommVault my entire rights to each Invention described in SECTION 2 hereof. As
requested by CommVault, I will take all steps reasonably necessary to assist
CommVault in obtaining and enforcing any patent, copyright, or other protection
which CommVault elects to obtain or enforce, in any country, for the Inventions
which I assign to CommVault. I will take no action to jeopardize CommVault's
ability to obtain or enforce its rights in such Inventions. My obligation to
assist CommVault in obtaining and enforcing patents, copyrights, and other
protections shall continue beyond the termination of my employment by CommVault
for whatever reason, but CommVault shall compensate me at a reasonable rate
after the termination of my employment for time actually spent at CommVault's
request providing such assistance. If CommVault is unable, after reasonable
effort, to secure my signature on any document needed to apply for, prosecute,
or enforce any patent, copyright, or other protection in relation to an
Invention, whether because of my physical or mental incapacity or for any other
reason


                                                              PURCHASE AGREEMENT
                                      C-2

<PAGE>

whatsoever, I hereby irrevocably designate and appoint CommVault and its duly
authorized officers and agents as my agent and attorney-in-fact, to act for and
in my behalf and stead to execute and file any such document and to do all other
lawfully permitted acts to further the prosecution and enforcement of patents,
copyrights, or similar protections with the same legal force and effect as if
executed by me.

         4. COMMVAULT CONFIDENTIAL INFORMATION. Because of my employment by
CommVault, I will have access to and will learn techniques, know-how, or other
information of a confidential nature concerning CommVault's experimental and
development work, trade secrets, procedures, business matters or affairs,
including, but not limited to, information relating to inventions, disclosures,
processes, systems, methods, formulas, patents, patent applications, machinery,
materials, research activities and plans, grant proposals, costs of production,
contract forms, prices, business plans, strategies, competitive strengths and
weaknesses, volume of sales, promotional methods, and lists of names or classes
of customers, as well as information of a confidential nature received from
CommVault's customers, joint ventures, collaborators, etc., and information
developed solely or jointly by me, included in connection with Inventions
("CommVault Confidential Information"). Information shall, for purposes of this
Agreement, be considered to be confidential if not known by the trade generally,
even though such information has been disclosed to one or more third parties
pursuant to distribution agreements, joint research agreements, other agreements
or collaborations entered into by CommVault.

         5. PROTECTION OF COMMVAULT CONFIDENTIAL INFORMATION. I shall at all
times use my best efforts and exercise utmost diligence to protect and guard
CommVault Confidential Information. I will not use CommVault Confidential
Information for personal gain or for any purpose outside of my employment by
CommVault or disclose any such information to any person or entity either during
or subsequent to my employment, without CommVault's prior written consent,
except to such an extent as may be necessary in the ordinary course of
performing my duties as an employee of CommVault.

         6. USE OF COMMVAULT CONFIDENTIAL INFORMATION. I shall not, for my own
account or as an officer, member, employee, consultant, representative, or
advisor of another, during my employment with CommVault or at any time
thereafter for any reason whatsoever, engage in or contribute my knowledge to
engineering, development, manufacture, research, business analysis or sales
relating to any product, equipment, process, or material that relates in any way
to the actual or anticipated business or research and development of CommVault,
without the written permission of CommVault. However, the foregoing provision
shall not prohibit me from engaging in any work at any time after leaving the
employ of CommVault, PROVIDED, that CommVault Confidential Information is not
involved in such work AND I am not in violation of any other term of this
Agreement or any other agreement entered into between me and CommVault. The
provisions of this SECTION 6 shall not be construed as limiting to any extent my
continuing obligations pursuant to the provisions in SECTION 5.


                                                              PURCHASE AGREEMENT
                                      C-3

<PAGE>

         7. IMPROPER USE OR DISCLOSURE OF CONFIDENTIAL INFORMATION. I shall not,
during my employment with CommVault, or at any time thereafter, improperly use
or disclose any proprietary information or trade secrets of any former or
current employer or other person or entity and I will not possess or bring onto
the premises of CommVault any such proprietary information without the prior
written consent of such employer, person or entity.

         8. OTHER RESTRICTIONS ON EMPLOYEE. I represent that there are no other
agreements or requirements to assign any invention or discovery conceived or
made by me, alone or with others, unless I have so indicated at the end of this
Agreement.

         9. DISCLOSURE IF INVENTIONS. I represent that I have listed and
described in detail at the end of this Agreement all inventions, if any,
patented and unpatented, which I conceived or made PRIOR to my employment by
CommVault. Any invention not so listed and described shall be presumed to have
been made during my employment by CommVault.

         10. RETURN OF COMMVAULT COMPANY INFORMATION. Upon termination of my
employment with CommVault for any reason, I shall disclose and provide to
CommVault all originals and all copies which are in my possession or under my
control, of all notes, memoranda, records, reports, drawings, blueprints, codes,
programs. Software, manuals, materials and data of any nature which are the
property of CommVault, which shall include, but not be limited to, every item in
my possession or under my control which contains any CommVault Confidential
Information.

         11. NON-COMPETITION AND NON-SOLICITATION. I acknowledge that because my
knowledge of the CommVault Confidential Information and the personal contacts
with the customers and employees of CommVault acquired by me during my
employment, CommVault would be irreparably damaged should I, in any manner or
form, enter into any form of competition with CommVault. I, therefore agree that
at all times during my employment and for a period of TWELVE (12) MONTHS
thereafter, I will not directly or indirectly, in any individual or
representative capacity, carry on, engage or participate in any business that is
in competition in any manner whatsoever with the business of CommVault, except
as expressly provided for in this Agreement, or as may hereafter be expressly
agreed to in writing by CommVault. Further, I agree to not directly or
indirectly hire, seek to hire, or refer for other employment any current
employee of CommVault nor will I, in any manner or capacity, directly or
indirectly: divert or attempt to divert from CommVault, through any means
whatsoever, any business or customers of CommVault, during the TWELVE (12) MONTH
period following my termination of employment. The phrase "carry on, engage or
participate in any business that is in competition in any manner whatsoever with
the business of CommVault" shall include, but not be limited to, the doing by
you or by any person, firm, corporation, association or other entity that
directly or indirectly, through one or more intermediaries, is controlled by, or
is under common control with, or controls you, of any of the following acts
other than as related to your services to CommVault pursuant to your employment
with CommVault: carrying on, engaging in or participating in any such business
as a principal, for your own account or solely, or jointly with others as a


                                                              PURCHASE AGREEMENT
                                      C-4

<PAGE>

partner (general or limited), joint venturer, shareholder or holder of any
equity security of any other corporation or entity, or as a consultant,
contractor, or subcontractor or agent of or for any person, firm, corporation,
association, or other entity or through any agency or by any other means
whatsoever; or utilizing for your own benefit, or making available to any
person, firm, corporation, association or other entity, any confidential or
proprietary proposals, financial statements, governmental filings, cost data,
business plans or correspondence relating to such information, or other
CommVault Confidential Information. I acknowledge and agree that, in light of
the nature of the business of CommVault, the foregoing activity and time period
restrictions are reasonable and properly required for the adequate protection of
CommVault, and that, in the event any such activity or time period restriction
is deemed to be unreasonable or unenforceable by a court of competent
jurisdiction, then I agree to submit to the reduction of such activity or time
period restriction to the extent necessary to enable the court to enforce such
restrictions to the fullest extent permitted under applicable law. It is the
desire and intent of the parties that the provisions of this Agreement shall be
enforced to the fullest extent permissible under the laws and public policies
applied by any jurisdiction where enforcement is sought.

         12. ETHICS. I understand and agree at all times to: (a) follow the
policies and guidelines of CommVault, as set forth by CommVault from time to
time; (b) represent CommVault in a professional manner exhibiting appropriate
behavior consistent with the highest ethical standards; (c) not make any
disparaging comment or statement (written or oral) about CommVault; (d) comply
with all applicable federal, state, and local laws, ordinances, regulations and
codes, including all Security and Exchange Commission laws and regulations; and,
(e) to apply for national security or other governmental clearance, if requested
by CommVault.

         13. GENERAL

         (a) I understand and agree that the restrictions of this Agreement are
limited only to those restrictions necessary for the adequate and legitimate
protection of CommVault. Each paragraph and subparagraph of this document is
separate from each other and constitutes a separate and distinctive covenant. In
the event any limitation hereunder is deemed to be unreasonable by a court of
competent jurisdiction, then I agree to submit to the reduction of such
limitation as the court shall deem reasonable. In the event that I am in
violation of any limitation herein, then the time limitation shall be extended
for a period of time equal to the period of time during which such breach should
occur.

         (b) I understand that nothing in this Agreement shall confer upon me
any right to continue in the employ of CommVault. I understand that the
restrictions contained in this Agreement shall survive the termination of my
employment with CommVault for any reason.

         (c) I certify that I have not entered into, and I agree to not enter
into any agreement, either written or oral, in conflict with this Agreement.


                                                              PURCHASE AGREEMENT
                                      C-5
<PAGE>

         (d) I hereby authorize CommVault to notify others, including, without
limitation, customers of CommVault and my future employers, of the terms of this
Agreement and my responsibilities hereunder.

         (e) This Agreement shall be governed by the laws of the State of New
Jersey, without regard to New Jersey choice of law principles, and adjudicated
in the courts located in the State of New Jersey. Each paragraph and
subparagraph shall be independent and separable from all other paragraphs and
subparagraphs, and the invalidity of a paragraph and subparagraph shall not
affect the enforceability of any of the other paragraphs and subparagraphs. For
purposes of this Agreement, the business of CommVault shall include the business
of any corporation, firm, or partnership, directly or indirectly, controlled by,
controlling, or under common control with CommVault or any partner or joint
venturer of CommVault. For any violation of this Agreement, a restraining order
and/or an injunction may be issued against me in addition to any other rights
CommVault may have under applicable law. In the event any party to this
Agreement is successful in any suit or proceeding brought or instituted with
respect to this Agreement or to enforce the Agreement, the prevailing party will
be paid by the losing party, in addition to other costs and damages, reasonable
attorney's fees and costs.

         (f) This Agreement shall be effective during the period of my
employment by CommVault and for any periods thereafter as set forth herein,
inure to the benefit of any successor or assignee of CommVault, and be binding
upon my heirs, administrators, and representatives.

I acknowledge that I am entering into this Agreement knowingly and voluntarily,
and that I have had an opportunity to review it with counsel of my choosing.


------------------------------------
Employee Signature

Dated:
      ------------------------------

USE THE SPACE BELOW AND THE BACK OF THIS AGREEMENT (IF NECESSARY) TO LIST ANY
AND ALL INVENTIONS CONCEIVED OR MADE BY ME PRIOR TO MY EMPLOYMENT WITH
COMMVAULT, AND A DETAILED DESCRIPTION THEREOF, AND OTHER AGREEMENTS OR
REQUIREMENTS TO ASSIGN INVENTIONS OR DISCOVERIES, AS DESCRIBED IN SECTIONS 8 AND
9 ABOVE.


                                                              PURCHASE AGREEMENT
                                      C-6
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.17
<SEQUENCE>6
<FILENAME>y17249a2exv10w17.txt
<DESCRIPTION>EX-10.17: SERIES CC PURCHASE AGREEMENT
<TEXT>
<PAGE>

                                                                   Exhibit 10.17

                          SERIES CC PURCHASE AGREEMENT

                  THIS SERIES CC PURCHASE AGREEMENT (this "AGREEMENT"), dated as
of September 2, 2003, is by and between the parties listed on SCHEDULE A hereto
(collectively , the "PURCHASERS") and CommVault Systems, Inc., a Delaware
corporation (the "COMPANY").

                  WHEREAS, each of the Purchasers desire to invest in the
Company; and

                  WHEREAS, the Company desires to issue and sell to the
Purchasers an aggregate of 4,790,802 shares of its Series CC Preferred Stock
(the "SHARES") and the Purchasers desire to purchase the Shares on the terms and
subject to the conditions described herein.

                  NOW, THEREFORE, in consideration of the premises and of the
mutual covenants, agreements and warranties herein contained, the parties hereto
agree as follows:

                  1. DEFINITIONS. Capitalized terms that are not defined in the
text of this Agreement have the meanings set forth below:

         "Additional Shares" has the meaning set forth in SECTION 5(E).

         "Affiliate" shall mean, with respect to any specified Person, any other
Person which, directly or indirectly, owns, manages or controls, is under common
ownership, management or control with, or is owned, managed or controlled by,
such specified Person and, with respect to Putnam, any funds or accounts where
Putnam Investment Management, LLC or its affiliates, acts as Investment Adviser
(as defined in the Investment Advisers Act of 1940, as amended). For purposes of
this definition, a Person shall be deemed to control another Person if the first
Person owns, manages or holds more than 50% of the voting power of the second
Person.

         "Amended Certificate" shall mean the Amended and Restated Certificate
of Incorporation of the Company in the form of EXHIBIT 2.

         "Board of Directors" shall mean the board of directors of the Company.

         "Closing" has the meaning set forth in SECTION 2(B).

         "Code" shall mean the Internal Revenue Code of 1986 or any successor
statute, and the rules and regulations thereunder, collectively and as from time
to time amended and in effect.

         "Commission" shall mean the Securities and Exchange Commission.

         "Conversion Shares" has the meaning set forth in SECTION 5(C).

         "Environmental Laws" has the meaning set forth in SECTION 3(R).

         "ERISA" shall mean the Employee Retirement Income Security Act of 1974
or any successor statute and the rules and regulations thereunder, collectively
and as from time to time amended and in effect.

                                      -1-

<PAGE>

         "Existing Series CC Purchase Agreement" means the Series CC Purchase
Agreement, dated as of February 14, 2002, between the Company and the other
Persons party thereto.

         "Existing Series CC Registration Rights Agreement" means the
Registration Rights Agreement, dated as of February 14, 2002, between the
Company and the holders of the Series CC Preferred Stock party thereto.

         "Financial Statements" has the meaning set forth in SECTION 3(G).

         "Governmental Authority" shall mean the government of the United States
or any foreign country or any state or political subdivision thereof and any
entity, body or authority exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government.

         "Initial Public Offering" shall mean the initial public offering or
sale of common stock by the Company through underwriters or otherwise, that
requires registration, qualification or the filing of a prospectus under the
Securities Act.

         "Issuance Notice" has the meaning set forth in SECTION 5(E).

         "Knowledge" shall mean the actual knowledge (assuming reasonable
investigation) of N. Robert Hammer, Louis Miceli, Larry Cormier, Al Bunte and
Brian McAteer and the other senior executives of the Company.

         "Law" shall mean any law, statute, regulation, ordinance, rule, order,
decree, judgment, consent decree, settlement agreement or governmental
requirement enacted, promulgated, entered into, agreed or imposed by any
Governmental Authority.

         "Lien" shall mean any mortgage, lien (except for any lien for taxes not
yet due and payable), charge, restriction, pledge, security interest, option,
lease or sublease, claim, right of any third party, easement, encroachment or
encumbrance.

         "Litigation" has the meaning set forth in SECTION 3(E).

         "Material Adverse Effect" shall mean an effect on the business,
operations, assets, liabilities, results of operations, cash flows or condition
(financial or otherwise) of the Company which is material and adverse.

         "Non-Preemptive Shares" shall mean any voting shares of the capital
stock of the Company issued, sold, granted or conveyed (i) as consideration in
any acquisition of all or a portion of any Person or a merger or combination
with any Person duly authorized by the Board of Directors, (ii) to any current
or new director, officer, employee or consultant of the Company pursuant to any
plan or arrangement, now or hereafter existing, duly authorized by the Board of
Directors, (iii) any shares of capital stock issued in connection with the
antidilution rights of any Person or (iv) pursuant to any of the items listed on
SCHEDULE C.

                                      -2-

<PAGE>

         "Person" shall mean any individual, corporation, proprietorship, firm,
partnership, limited liability company, limited partnership, trust, association,
Massachusetts business trust or other entity.

         "Preferred Stock" shall mean, collectively, the Company's issued and
outstanding Series A Preferred Stock, Series B Preferred Stock, Series C
Preferred Stock, Series D Preferred Stock, Series E Preferred Stock, Series AA
Preferred Stock, Series BB Preferred Stock and Series CC Preferred Stock.

         "Proprietary Assets" has the meaning set forth in SECTION 3(F).

         "Proprietary Software" has the meaning set forth in SECTION 3(F).

         "Purchase Price" has the meaning set forth in SECTION 2(A).

         "Putnam" means funds and accounts managed by Affiliates of Putnam
Investments, LLC.

         "Registration Rights Agreement" shall mean the Amended and Restated
Series CC Registration Rights Agreement (amending and restating the Existing
Series CC Registration Rights Agreement) to which Purchasers shall become a
party as of the Closing in the form of EXHIBIT 1.

         "Required Consents" means (i) the approval of the Amended Certificate
by the Company's stockholders and the filing of such certificate with the
Delaware Secretary of State, (ii) approval of amendments to the Series AA
Registration Rights Agreement, the Series BB Registration Rights Agreement, the
Existing Series CC Registration Rights Agreement and the Stockholders' Agreement
and (iii) waivers by the holders of the Company's Preferred Stock of preemptive
rights to purchase the Shares.

         "Response Notice" has the meaning set forth in SECTION 5(E).

         "Securities Act" shall mean the Securities Act of 1933, as amended.

         "Series AA Purchase Agreement" shall mean the Purchase Agreement, dated
as of April 14, 2000 between the Company and the other Persons party thereto.

         "Series AA Registration Rights Agreement" shall mean the Amended and
Restated Registration Rights Agreement, dated as of February 14, 2002, between
the Company and the holders of the Company's Series AA Preferred Stock.

         "Series BB Purchase Agreement" shall mean the Purchase Agreement, dated
as of November 10, 2000, by and between the Company and the other Persons party
thereto.

         "Series BB Registration Rights Agreement" shall mean the Amended and
Restated Registration Rights Agreement, dated as of February 14, 2002, between
the Company and the holders of the Series BB Preferred Stock.

         "Share" has the meaning set forth in the preamble.

                                      -3-

<PAGE>

         "Stock Plan" shall mean the Company's stock plan, as described on
SCHEDULE C.

         "Stockholders' Agreement" shall mean the stockholders' agreement, dated
as of May 22, 1996, and as further amended, between the Company and certain of
its stockholders.

         "Subsidiaries" shall mean the Persons set forth on SCHEDULE B.

         "Third Party Buyer" has the meaning set forth in SECTION 5(E).

         "Transfer" has the meaning set forth in SECTION 5(D).

                  2. PURCHASE AND SALE OF SHARES.

         (a) PURCHASE PRICE. Subject to the terms and conditions set forth in
this Agreement, at the Closing (as hereinafter defined), the Purchasers shall
purchase, and the Company shall issue and sell to the Purchasers the Shares for
an aggregate purchase price (the "Purchase Price") of $15,000,001.06. The number
of Shares being sold to each Purchaser and the portion of the Purchase Price
attributable thereto is set forth on SCHEDULE A hereto.

         (b) CLOSING. The closing (the "Closing") of the transactions described
herein shall occur at 10:00 a.m. on the date hereof, at the offices of Mayer,
Brown, Rowe & Maw LLP, 190 S. LaSalle Street, Chicago, IL 60603, or such other
place and time as agreed upon by the Purchasers and the Company. At the Closing,
the Purchasers shall pay the Company the Purchase Price in cash by wire transfer
of immediately available funds to an account designated by the Company, which
designation shall occur at least two business days before the Closing, and the
Company shall deliver to each Purchaser a certificate representing the Shares
purchased by such Purchaser; PROVIDED, that, if so requested by a Purchaser that
is an Affiliate of Putnam, the Company will deliver such certificate to such
Purchaser's custodian at least one business day prior to the Closing pursuant to
an escrow arrangement reasonably acceptable to such custodian, the Company and
Putnam.

                  3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company
hereby represents and warrants to each of the Purchasers:

         (a) DUE INCORPORATION; SUBSIDIARIES. Each of the Company and the
Subsidiaries is duly incorporated, validly existing and in good standing under
the laws of its jurisdiction of incorporation, with all requisite power and
authority to own, lease and operate its properties and to carry on its business
as they are now being owned, leased, operated and conducted. Each of the Company
and the Subsidiaries is licensed or qualified to do business and is in good
standing as a foreign corporation in each jurisdiction where the nature of the
properties owned, leased or operated by it and the businesses transacted by it
require such licensing or qualification, except where the failure to be so
licensed or qualified would not individually or in the aggregate have a Material
Adverse Effect. Except as set forth on SCHEDULE B, the Company has no direct or
indirect subsidiaries, either wholly or partially owned, and the Company does
not hold any direct or indirect economic, voting or management interest in any
Person or directly or indirectly own any security issued by any Person. Each
Subsidiary is wholly owned by the Company.

                                      -4-

<PAGE>

                  (b) DUE AUTHORIZATION. The Company has full power and
authority to enter into this Agreement and the Registration Rights Agreement and
to consummate the transactions contemplated hereby and thereby. The execution,
delivery and performance by the Company of this Agreement and the Registration
Rights Agreement have been duly and validly approved by the board of directors
of the Company and no other actions or proceedings on the part of the Company
are necessary to authorize this Agreement, the Registration Rights Agreement and
the transactions contemplated hereby and thereby. The Company has duly and
validly executed and delivered this Agreement and has duly and validly executed
and delivered the Registration Rights Agreement. This Agreement constitutes
legal, valid and binding obligations of the Company and the Registration Rights
Agreement upon execution and delivery by the Company will constitute legal,
valid and binding obligations of the Company, in each case, enforceable in
accordance with their respective terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, moratorium, reorganization or
similar laws in effect which affect the enforcement of creditors' rights
generally and by equitable limitations on the availability of specific remedies.

         (c) CONSENTS AND APPROVALS; AUTHORITY RELATIVE TO THIS AGREEMENT.

                  (i) No consent, authorization or approval of, filing or
registration with, or cooperation from, any Governmental Authority or any other
Person not a party to this Agreement that has not been received by the Company
is necessary in connection with the execution, delivery and performance by the
Company of this Agreement and the execution, delivery and performance by the
Company of the Registration Rights Agreement or the consummation of the
transactions contemplated hereby or thereby (including, without limitation, the
offer, issuance, sale and delivery of the Shares and the Conversion Shares).

                  (ii) The execution, delivery and performance by the Company of
this Agreement and the Registration Rights Agreement or the consummation of the
transactions contemplated hereby and thereby do not and will not (1) violate any
Law; (2) violate or conflict with, result in a breach or termination of,
constitute a default or give any third party any additional right (including a
termination right) under, permit cancellation of, result in the creation of any
Lien upon any of the assets or properties of the Company under, or result in or
constitute a circumstance which, with or without notice or lapse of time or
both, would constitute any of the foregoing under, any contract to which the
Company, is a party or by which the Company or any of its assets or properties
are bound; (3) permit the acceleration of the maturity of any indebtedness of
the Company or indebtedness secured by its assets or properties; or (4) violate
or conflict with any provision of any of the Amended Certificate or by-laws of
the Company.

         (d) CAPITALIZATION.

                  (i) The authorized capital stock of the Company is as
described in the Amended Certificate. The outstanding capital stock of the
Company immediately prior to the Closing and before the issuance of the Shares
is as follows: (i) 2,039,717 shares of Series A Preferred Stock, (ii) 346,000
shares of Series B Preferred Stock, (iii) 333,333 shares of Series C Preferred
Stock, (iv) 247,204 shares of Series D Preferred Stock, (v) 200,000 shares of
Series E Preferred Stock, (vi) 4,361,555 shares of Series AA Preferred Stock,
(vii) 2,758,358 shares of

                                      -5-
<PAGE>

Series BB Preferred Stock, (viii) 7, 341,105 shares of Series CC Preferred Stock
and (ix) 39,786,975 shares of Common Stock. All of the outstanding capital stock
of the Company and each Subsidiary (i) is validly issued, fully paid and
nonassessable and (ii) is free of preemptive rights (except as provided in the
Stockholders' Agreement, Series AA Purchase Agreement, the Series BB Purchase
Agreement, the Existing Series CC Purchase Agreement and this Agreement). When
issued, the Shares and the Conversion Shares will be validly issued, fully paid
and nonassessable and will not have been issued in violation of any preemptive
rights or rights of first refusal. The authorized capital stock as described in
the Amended Certificate contains a sufficient number of shares of common stock
for issuance of the Conversion Shares.

                  (ii) Except as set forth above or on SCHEDULE C, there are no
shares of capital stock or other securities (whether or not such securities have
voting rights) of the Company issued or outstanding or any subscriptions,
options, warrants, calls, rights, convertible securities or other agreements or
commitments of any character obligating the Company to issue, transfer or sell,
or cause the issuance, transfer or sale of, any shares of its capital stock or
other securities (whether or not such securities have voting rights). Except as
set forth in SCHEDULE C, there are no outstanding contractual obligations of the
Company which relate to the purchase, sale, issuance, repurchase, redemption,
acquisition, transfer, disposition, holding or voting of any shares of its
capital stock or other securities. After giving effect to the issuance of the
Shares (and antidilution adjustments resulting therefrom), the maximum number of
shares of common stock that the Company has issued and would be obligated to
issue as of the date hereof is 82,877,864 shares on a fully diluted basis.

         (e) LITIGATION.

                  (i) There is no claim, action, suit, investigation or
proceeding ("LITIGATION") pending or, to the Knowledge of the Company,
threatened against the Company or any Subsidiary, or involving any of its
properties or assets by or before any court, arbitrator or other Governmental
Entity which (1) in any manner challenges or seeks to prevent, enjoin, alter or
materially delay the transactions contemplated by this Agreement or (2) if
resolved adversely to the Company or any Subsidiary, would reasonably be
expected to have a Material Adverse Effect.

                  (ii) Neither the Company nor any Subsidiary is in default
under or in breach of any order, judgment or decree of any court, arbitrator or
other Governmental Authority.

         (f) INTELLECTUAL PROPERTY.

                  (i) The Company owns all right, title and interest in, or, to
the Knowledge of the Company, has the right to use: all patents and the
inventions claimed therein; trademarks, service marks and trade names, together
with associated goodwill; copyrights and copyrightable work; Internet domain
names; registrations and applications relating to any of the foregoing;
know-how, processes, formulae, algorithms, models, methodologies and trade
secrets; computer programs, including any and all software implementations of
algorithms, models and methodologies whether in source code or object code form;
databases and compilations, including any and all data, all documentation,
including user manuals and training materials, related to any of the foregoing;
and the content and information contained on any Company Web


                                      -6-

<PAGE>

site; and other confidential and proprietary information (collectively, the
"Proprietary Assets") used in its business as now conducted and as presently
proposed to be conducted. To the Knowledge of the Company, no person or entity
has any ownership right, title, interest, claim in or Lien on any of the
Company's Proprietary Assets. No current or former employee, officer, director
or consultant of the Company has any ownership right, right to use, title,
interest, claim in or Lien on any of the Company's Proprietary Assets. Except
for licenses granted in the ordinary course of business in connection with the
sale of the Company's products, the Company has not granted and, to the
Knowledge of the Company, there are not outstanding, any options, licenses or
agreements of any kind relating to any Proprietary Asset of the Company, nor has
the Company granted and, to the Knowledge of the Company, is the Company bound
by or a party to, any option, license or agreement of any kind with respect to
any of its Proprietary Assets. No settlement agreements, consents, judgments,
orders, forbearance to sue or similar obligations limit or restrict the
Company's rights in and to any Proprietary Assets.

                  (ii) To the Knowledge of the Company, the Company has not
violated, misappropriated, diluted or infringed, and would not, by conducting
its business as currently proposed, violate, misappropriate, dilute or infringe,
any intellectual property right in any Proprietary Asset of any other Person.
There is no claim, action, suit, investigation or proceeding pending or, to the
Knowledge of the Company, threatened against the Company which would affect in
any way any of its Proprietary Assets by or before any court, arbitrator or
other Governmental Entity. To the Knowledge of the Company, no third party has
violated, misappropriated, diluted or infringed any intellectual property right
in any Proprietary Asset of the Company.

                  (iii) The Company takes all reasonable measures to protect the
confidentiality of its trade secrets including requiring third parties having
access thereto to execute written nondisclosure agreements. Each employee of the
Company hired after January 1, 1998 has signed an Employee Inventions and
Confidentiality Agreement substantially in the form attached hereto as SCHEDULE
D.

                  (iv) All material Proprietary Assets owned or used by the
Company have been duly maintained, are valid and subsisting, in full force and
effect and have not been cancelled, expired or abandoned. The execution,
delivery and performance by the Company of this Agreement and the Registration
Rights Agreement, and the consummation of the transactions contemplated hereby
and thereby will not result in the loss or impairment of the Company's rights to
own or use any of the Proprietary Assets, nor will such consummation require the
consent of any third party in respect of any Proprietary Assets.

                  (v) Except for Microsoft Corporation's SQL product, which
Microsoft Corporation has licensed to the Company (with rights to further
sublicense such software), the Company's software products (the "PROPRIETARY
SOFTWARE") were either developed (a) by employees of the Company within the
scope of their employment; (b) by independent contractors as
"works-made-for-hire," as that term is defined under Section 101 of the United
States Copyright Act, 17 U.S.C. ss. 101, pursuant to written agreement; or (c)
by third parties who have assigned all of their rights therein to the Company
pursuant to a written agreement. No former or present employees, officers or
directors of the Company, or any other third parties retain any rights of
ownership or use of the Proprietary Software, and no employees or third parties
who

                                      -7-

<PAGE>

have developed or participated in the development of the Proprietary Software
have any claims to any moral rights therein.

                  (g) FINANCIAL STATEMENTS. The Company has furnished to each of
the requesting Purchasers audited financial statements as of, and for, the year
ended March 31, 2003, including a balance sheet and statement of income
(collectively, the "FINANCIAL STATEMENTS"). The Financial Statements are
complete and correct, are in accordance with the books and records of the
Company and present fairly in all material respects the financial condition and
results of operations of the Company, at the dates and for the periods
indicated, and have been prepared in accordance with generally accepted
accounting principles consistently applied.

                  (h) ABSENCE OF UNDISCLOSED LIABILITIES. The Company does not
have any liability (whether known or unknown and whether absolute or
contingent), except for (a) liabilities shown on the face of the Financial
Statements and (b) liabilities that have arisen since March 31, 2003 in the
ordinary course of business that are not material.

                  (i) ABSENCE OF CHANGES. Since March 31, 2003, the Company has
conducted its business in the ordinary course, consistent with past practice and
there has not been any event or condition which has had or would be reasonably
expected to have, individually or in the aggregate, a Material Adverse Effect.

                  (j) CONTRACTS. The Company does not have and is not bound by
any contract, agreement, lease or commitment, other than (i) contracts for the
purchase of supplies and services or the licensing of technology that were
entered into in the ordinary course of business that do not involve more than
$250,000 per year and do not extend for more than one year, (ii) sales contracts
entered into in the ordinary course of business, (iii) the leases for the
Company's office or other space, (iv) contracts terminable at will by the
Company on no more than 30 days' notice without cost or liability to the
Company, (v) an agreement with Microsoft Corporation, dated as of April 12,
2000, or (vi) other contracts the loss of which would not have a Material
Adverse Effect. The Company has provided the Purchasers with a copy of all its
material contracts. To the Knowledge of the Company, all of the contracts to
which it is a party are valid and binding and are in full force and effect as of
the date of this Agreement.

                  (k) REGISTRATION RIGHTS. Other than the Registration Rights
Agreement, the Series AA Registration Rights Agreement, the Series BB
Registration Rights Agreement, the Existing Series CC Registration Rights
Agreement, the Stockholders Agreement and the piggyback registration rights
granted pursuant to the purchase agreement listed in paragraph 4 of SCHEDULE C,
the Company has not granted any registration rights to any party for any of its
securities.

                  (l) COMPLIANCE WITH LAWS. The Company and each Subsidiary are
in compliance in all material respects with all applicable Laws. All securities
issued by the Company prior to the date hereof have been issued in transactions
exempt from the registration requirements of Section 5 of the Securities Act.

                  (m) OFFERING OF SHARES. Neither the Company nor any Person
acting on its behalf has taken or will take any action (including, without
limitation, any offering of any securities of the Company under circumstances
which would require, under the Securities Act, the integration of

                                      -8-

<PAGE>

such offering with the offering and sale of the Shares) which might reasonably
be expected to subject the offering, issuance or sale of the Shares to the
registration requirements of the Securities Act. Subject to the continuing
accuracy of the Purchasers' representations in Section 4, the offer, sale and
issuance of the Shares and the Conversion Shares in accordance with the terms of
this Agreement and the Amended Certificate constitute or will constitute
transactions exempt from the registration requirements of Section 5 of the
Securities Act.

                  (n) BROKERS. Except for fees and commissions payable to C.E.
Unterberg, Towbin by the Company, no broker, finder or investment banker is
entitled to any brokerage, finder's or other fee or commission from any party in
connection with the transactions contemplated by this Agreement based upon
arrangements made by or on behalf of the Company.

                  (o) INSURANCE COVERAGE. The Company maintains in full force
and effect insurance coverage that the Company reasonably believes to be
adequate against all liabilities, claims and risks against which it is customary
for comparably situated companies to insure.

                  (p) EMPLOYEES. To the Company's Knowledge, no executive, key
employee, or group of employees has any plans to terminate employment with the
Company. The Company is in compliance in all material respects with all
applicable Laws regarding employment and employment practices and terms and
conditions of employment.

                  (q) ERISA. The Company does not have or otherwise contribute
to or participate in any employee benefit plan subject to Title IV of ERISA.

                  (r) ENVIRONMENTAL MATTERS. The Company is not in violation of
any statute, rule, regulation, decision or order of any Governmental Authority
relating to the use, disposal or release of hazardous or toxic substances or
relating to the protection or restoration of the environment or human exposure
to hazardous or toxic substances (collectively, "ENVIRONMENTAL LAWS"), does not
own or operate any real property contaminated with any substance that is subject
to any Environmental Laws, is not liable for any off-site disposal or
contamination pursuant to any Environmental Laws, and is not subject to any
claim relating to any Environmental Laws, which violation, contamination,
liability or claim would individually or in the aggregate have a Material
Adverse Effect; and the Company has no Knowledge of any pending investigation
that might lead to such a claim.

                  (s) AFFILIATED TRANSACTIONS. Other than the Stockholders'
Agreement, the Series AA Purchase Agreement, the Series AA Registration Rights
Agreement, the Series BB Purchase Agreement, the Series BB Registration Rights
Agreement, agreements for certain advisory services with Credit Suisse First
Boston Corporation and/or its Affiliates, the Company's Employment Agreement
with N. Robert Hammer and the side letters with holders of the Company's Series
A through E Preferred Stock dated February 14, 2002, the Company is not, nor has
it been, a party to or bound by any contract, agreement, lease or commitment
with any of the Affiliates of the Company, other than on arms-length terms which
are no less favorable to the Company than those which could be obtained with a
third party which is not an Affiliate of the Company and no Affiliate of the
Company owns or otherwise has any rights to or interests in any asset, tangible
or intangible, which is used in the conduct of the Company's business.

                                      -9-

<PAGE>

                  (t) NO ILLEGAL PAYMENTS. In connection with the conduct of the
Company's business, none of the Company nor any of their directors or officers
nor, to the Company's Knowledge, any of their employees or agents, has (x)
directly or indirectly given or agreed to give any illegal gift, contribution,
payment or similar benefit to any supplier, customer, governmental official or
employee or other person who was, is or may be in a position to help or hinder
the Company (or assist in connection with any actual or proposed transaction) or
made or agreed to make any illegal contribution, or reimbursed any illegal
political gift or contribution made by any other person, to any candidate for
federal, state, local or foreign public office (i) which might subject the
Company to any damage or penalty in any civil, criminal or governmental
litigation or proceeding or (ii) the non-continuation of which has had or might
have a Material Adverse Effect or (y) established or maintained any unrecorded
fund or asset or made any false entries on any books or records for any purpose.

                  (u) DISCLOSURE. The representations and warranties contained
in this Section 3 (including any schedules and exhibits required to be delivered
by the Company to the Purchasers pursuant to this Agreement) and any certificate
furnished or to be furnished by the Company to the Purchasers do not contain and
on the date of the Closing will not contain any untrue statement of a material
fact or omit to state any material fact necessary in order to make the
statements and information contained in this Section 3 not misleading.

                  4. REPRESENTATIONS AND WARRANTIES OF PURCHASERS.  Each of the
Purchasers severally but not jointly hereby represents and warrants to the
Company as follows:

                  (a) DUE INCORPORATION. Such Purchaser, if not an individual,
is duly organized or duly formed, validly existing and in good standing under
the laws of its jurisdiction of organization, with all requisite power and
authority to own, lease and operate its properties and to carry on its business
as they are now being owned, leased, operated and conducted.

                  (b) DUE AUTHORIZATION. Such Purchaser, if not an individual,
has full power and authority to enter into this Agreement and the Registration
Rights Agreement and to consummate the transactions contemplated hereby and
thereby. The execution, delivery and performance by such Purchaser of this
Agreement and the Registration Rights Agreement have been duly and validly
approved by its governing body empowered to authorize the transactions
contemplated by this Agreement and the Registration Rights Agreement and no
other actions or proceedings on the part of such Purchaser are necessary to
authorize this Agreement, the Registration Rights Agreement and the transactions
contemplated hereby and thereby. Such Purchaser, if an individual, has the legal
capacity to enter into this Agreement and the Registration Rights Agreement.

                  (c) DUE EXECUTION; BINDING EFFECT. Such Purchaser has validly
executed and delivered this Agreement and has duly and validly executed and
delivered (or prior to or at the Closing will duly and validly execute and
deliver) the Registration Rights Agreement. This Agreement constitutes legal,
valid and binding obligations of such Purchaser and such Purchaser's Related
Agreements upon execution and delivery by such Purchaser (as applicable) will
constitute legal, valid and binding obligations of such Purchaser, in each case,
enforceable in accordance with their respective terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, moratorium,
reorganization or similar laws in effect which

                                      -10-

<PAGE>

affect the enforcement of creditors' rights generally and by equitable
limitations on the availability of specific remedies.

         (d) CONSENTS AND APPROVALS; AUTHORITY RELATIVE TO THIS AGREEMENT.

                  (i) No consent, authorization or approval of, filing or
registration with, or cooperation from, any Governmental Authority or any other
Person not a party to this Agreement is necessary in connection with the
execution, delivery and performance by such Purchaser of this Agreement and the
Registration Rights Agreement and the consummation by such Purchaser of the
transactions contemplated hereby and thereby.

                  (ii) The execution, delivery and performance by such Purchaser
of this Agreement and the Registration Rights Agreement do not and will not (1)
violate any Law applicable to such Purchaser; (2) violate or conflict with,
result in a breach or termination of, constitute a default or give any third
party any additional right (including a termination right) under, permit
cancellation of, result in the creation of any Lien upon any of the assets or
properties of such Purchaser under, or result in or constitute a circumstance
which, with or without notice or lapse of time or both, would constitute any of
the foregoing under, any contract to which Purchaser is a party or by which such
Purchaser or any of its assets or properties are bound; (3) permit the
acceleration of the maturity of any indebtedness of such Purchaser or
indebtedness secured by its assets or properties; or (4) if such Purchaser is
not an individual, violate or conflict with any provision of such Purchaser's
organizational documents.

         (e) BROKERS. No broker, lender or investment banker is entitled to any
brokerage, lender's or other fee or commission from any party in connection with
the transactions contemplated by this Agreement based on arrangements made by or
on behalf of such Purchaser.

         (f) PURCHASE FOR INVESTMENT. Such Purchaser is purchasing the Shares
hereunder for investment without any intent of the distribution thereof within
the meaning of the Securities Act.

         (g) ACCREDITED INVESTOR. Such Purchaser is an "accredited investor"
within the meaning of Regulation 501(a) under the Securities Act and is able to
bear the economic risk of acquisition of the Shares, can afford to sustain a
total loss on such investment, and has such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and
risk of the proposed investment. Such Purchaser has been furnished the
opportunity to ask questions of and receive answers from representatives of the
Company concerning the business and financial affairs of the Company.

                  5. COVENANTS.

         (a) AMENDED CERTIFICATE. The Company shall, prior to the Closing, cause
the Amended Certificate to be filed with the Secretary of State of the State of
Delaware.

         (b) COOPERATION. Each of the Purchasers and the Company agrees to use
its reasonable best efforts to take, or cause to be taken, all such further
actions as shall be necessary to make effective and consummate the transactions
contemplated by this Agreement.

                                      -11-

<PAGE>

         (c) RESERVE SHARES. The Company will at all times reserve and keep
available, solely for issuance and delivery upon conversion of the Shares, the
number of shares of common stock from time to time issuable upon conversion of
all Shares at the time outstanding (the "CONVERSION SHARES"). All Conversion
Shares shall be duly authorized and, when issued upon such conversion in
accordance with the Amended Certificate, shall be validly issued, fully paid and
nonassessable.

         (d) RESTRICTIONS ON TRANSFER. The Purchasers will not, prior to the
earlier of (a) December 31, 2005 or (b) the time of the closing of the Initial
Public Offering, sell, transfer, assign, convey, gift, mortgage, pledge,
encumber, hypothecate, or otherwise dispose of, directly or indirectly,
("TRANSFER") any of the Shares or any Conversion Shares except for (i) Transfers
between and among the Purchasers and their Affiliates provided such Transfer is
in accordance with the transfer restrictions applicable to the Shares or the
Conversion Shares under federal and state securities laws and the Affiliate
transferee agrees to be bound by the restrictions applicable to such Shares or
Conversion Shares, including without limitation the agreements set forth in this
SECTION 5(D), and (ii) Transfers (x) pursuant to a bona fide tender or exchange
offer made pursuant to a merger or other agreement approved by the Board of
Directors to acquire securities of the Company, (y) pursuant to any cash merger,
or other business combination transaction to which the Company is a party or
involved in which the common stock of the Company's stockholders is exchanged
for cash upon consummation of such merger or other business combination or (z)
agreed to in writing by the Company. Notwithstanding any other provision of this
SECTION 5(D), no Purchaser shall avoid the provisions of this SECTION 5(D) by
making one or more transfers to one or more Affiliates and then disposing of all
or any portion of such Purchaser's interest in any such Affiliate.

         (e) PREEMPTIVE RIGHT. If at any time the Company desires to issue or
sell any shares of its capital stock or securities convertible, exercisable or
exchangeable for the Company's capital stock (other than Non-Preemptive Shares)
(the "ADDITIONAL SHARES") to any Person, the Company shall give a written notice
(the "ISSUANCE NOTICE") to the Purchasers setting forth the proposed terms of
the sale of such Additional Shares and the quantity of Additional Shares to be
issued, the proposed issuance date and the price at which such Additional Shares
shall be issued. Each of the Purchasers shall have the option to purchase the
number of Additional Shares necessary to maintain such Purchaser's percentage of
issued and outstanding shares of the Company at the time of the Issuance Notice,
which option may be exercised by giving written notice to the Company (the
"RESPONSE NOTICE") within 14 days of the Issuance Notice that contains an
agreement to purchase all or any portion of the Additional Shares to which such
Purchaser is entitled to purchase. Failure by a Purchaser to give the Response
Notice to the Company within such 14-day period shall be deemed to be a
rejection of such option. For a period of 180 days after any Issuance Notice,
the Company shall have the right to issue or sell to any Person (a "THIRD PARTY
BUYER") up to the number of Additional Shares specified in the Issuance Notice
less the number of Additional Shares subscribed for pursuant to duly tendered
Response Notices at the same price and on other terms not materially less
favorable to the Company than as specified in the Issuance Notice. At the time
of the closing of the sale of the Additional Shares to one or more Third Party
Buyers, the Company shall sell to such Purchaser and such Purchaser shall
purchase the Additional Shares that such Purchaser agreed to purchase in the
Response Notice, at the price and on the terms set forth in the Issuance Notice.
If at the end of the 180th day following any Issuance Notice, the Company has
not completed the

                                      -12-

<PAGE>

issuance described in the Issuance Notice, each Purchaser that has provided a
Response Notice shall be released from its obligations thereunder. If the
Company desires to issue or sell Additional Shares, (i) after such 180-day
period, (ii) except in connection with an Initial Public Offering, on terms
materially less favorable to the Company than as specified in the Issuance
Notice, (iii) except in connection with an Initial Public Offering, at a price
less than the price specified in the Issuance Notice or (iv) except in
connection with an Initial Public Offering, in a quantity greater than as
specified in the Issuance Notice, the Company must again comply with this
SECTION 5(E). If the Company desires to take any of the actions set forth in
clauses (ii), (iii) or (iv) of the prior sentence in connection with an Initial
Public Offering, each Purchaser, at its option, shall be released from its
obligations under its Response Notice. The rights and obligations of the parties
pursuant to this SECTION 5(E) shall terminate upon the closing of an Initial
Public Offering.

         (f) COMPLIANCE WITH SECURITIES LAWS. Such Purchaser understands that
the Shares and the Conversion Shares will not be registered under the Securities
Act or applicable state securities laws and agrees not to sell, pledge or
otherwise transfer any of the Shares and Conversion Shares in the absence of
such registration or an opinion of counsel reasonably satisfactory to the
Company that such registration is not required, except that the requirement of a
legal opinion will not apply to transfers by Putnam to any of its Affiliates.
Except as set forth in the Registration Rights Agreement, such Purchaser
acknowledges that the Company is not required to register the Shares or the
Conversion Shares.

                  6. CONDITIONS.

     (a) CONDITIONS TO OBLIGATIONS OF THE PURCHASERS. The obligations of the
Purchasers to consummate the transactions contemplated hereby shall be subject
to the satisfaction or waiver at or prior to the Closing of each of the
following conditions:

                  (i) No statute, rule or regulation or order of any
Governmental Authority shall be in effect which prohibits the consummation of
the transactions contemplated hereby;

                  (ii) The Company shall have performed, satisfied and complied
in all material respects with all of its covenants and agreements set forth in
this Agreement to be performed, satisfied and complied with prior to or at the
Closing;

                  (iii) The representations and warranties of the Company in
Section 3 shall be true and correct in all material respects as of the date of
Closing;

                  (iv) The Company shall have executed and delivered to each of
the Purchasers the Registration Rights Agreement;

                  (v) The Company shall have obtained sufficient waivers of
pre-emptive rights from all holders of capital stock who possess such rights so
as to allow the consummation of the transactions contemplated by this Agreement;

                  (vi) The Amended Certificate shall have been duly filed with
the Secretary of State of the State of Delaware in accordance with the laws of
the State of Delaware and the Amended Certificate shall be in full force and
effect;

                                      -13-

<PAGE>

                  (vii) Mayer, Brown, Rowe & Maw LLP shall have delivered an
opinion in form and substance reasonably satisfactory to Purchasers;

                  (viii) The Company shall have delivered a good standing
certificate for the Company (or a copy thereof) to each of the Purchasers;

                  (ix) The Company shall have received all consents,
authorizations, and approvals necessary to complete the transactions
contemplated hereby, including, without limitation, the Required Consents;

                  (x) The Company shall have delivered to each Purchaser a
certificate of the Company, dated the date of the Closing and executed by the
Chief Executive Officer of the Company, certifying as to the fulfillment of the
conditions specified in Sections 6(a)(ii), (iii), (vi), (xii) and (xiii) of this
Agreement;

                  (xi) The Company shall have delivered to each Purchaser a
certificate of the Company, dated the date of the Closing and executed by the
Secretary of the Company, certifying: (a) the corporate proceedings taken by the
Company's Board of Directors and, if required, stockholders approving this
Agreement and the Registration Rights Agreement and the transactions
contemplated hereby and thereby; (b) the Amended Certificate; and (c) the
By-laws of the Company;

                  (xii) No claim, action, cause of action, suit, litigation,
arbitration, investigation, hearing, charge, complaint, demand, notice or
proceeding to, from, by or before any Governmental Authority shall be pending or
threatened wherein an unfavorable injunction, judgment, order, decree, ruling,
or charge would (i) prevent consummation of any of the transactions contemplated
by this Agreement or (ii) cause any of the transactions contemplated by this
Agreement to be rescinded following consummation (and no such injunction,
judgment, order, decree, ruling, or charge shall be in effect); and

                  (xiii) There shall not have occurred any event, circumstances,
condition, fact, effect, or other matter which has had or would reasonably be
expected to have a Material Adverse Effect.

         (b) CONDITIONS TO OBLIGATIONS OF THE COMPANY. The obligation of the
Company to consummate the transactions contemplated hereby shall be subject to
the satisfaction or waiver at or prior to the Closing of each of the following
conditions:

                  (i) No statute, rule or regulation or order of any court or
administrative agency shall be in effect which prohibits the consummation of the
transactions contemplated hereby;

                  (ii) Each of the Purchasers shall have executed and delivered
to the Company the Registration Rights Agreement;

                  (iii) The representations and warranties of the Purchasers in
Section 4 shall be true and correct in all material respects as of the date of
Closing;

                                      -14-

<PAGE>
                (iv) The Company shall have received the Required Consents; and

                (v) The Purchasers shall have performed, satisfied and complied
in all material respects with all of their covenants and agreements set forth in
this Agreement to be performed, satisfied and complied with prior to or at the
Closing.

                  7. SURVIVAL OF REPRESENTATIONS AND WARRANTIES.

         The representations and warranties of the parties contained in this
Agreement shall expire on the 18-month anniversary of the Closing, except for
those representations and warranties contained in Sections 3(a) through 3(d)
which shall expire on the later of (i) the 18-month anniversary of the Closing
or (ii) the closing of an Initial Public Offering. After the expiration of such
period, any claim by a party based upon any such representation or warranty
shall be of no further force and effect, except to the extent a party has given
notice to the other party of a claim for breach of any such representation or
warranty prior to the expiration of such period, in which event any
representation or warranty to which such claim relates shall survive with
respect to such claim until such claim is resolved. The covenants and agreements
of the parties hereto contained in this Agreement shall survive the Closing
until performed in accordance with their terms.

                  8. RESTRICTIVE LEGENDS.  Each certificate representing any
Shares or Conversion Shares shall bear legends in substantially the following
form:

         THE SECURITIES EVIDENCED BY THIS CERTIFICATE SHALL BE CONVERTIBLE INTO
         THE COMPANY'S COMMON STOCK IN THE MANNER AND ACCORDING TO THE TERMS SET
         FORTH IN THE CERTIFICATE OF INCORPORATION AS AMENDED AND/OR RESTATED
         FROM TIME TO TIME. THE COMPANY IS AUTHORIZED TO ISSUE MORE THAN ONE
         CLASS OR SERIES OF STOCK. AS REQUIRED UNDER DELAWARE LAW, THE COMPANY
         SHALL FURNISH TO ANY HOLDER UPON REQUEST AND WITHOUT CHARGE, A FULL
         SUMMARY STATEMENT OF THE DESIGNATIONS, VOTING RIGHTS, PREFERENCES,
         LIMITATIONS AND SPECIAL RIGHTS OF THE SHARES OF EACH CLASS OR SERIES
         AUTHORIZED TO BE ISSUED BY THE COMPANY SO FAR AS THEY HAVE BEEN FIXED
         AND DETERMINED AND THE AUTHORITY OF THE BOARD OF DIRECTORS TO FIX AND
         DETERMINE THE DESIGNATIONS, VOTING RIGHTS, PREFERENCES, LIMITATIONS AND
         SPECIAL RIGHTS OF THE CLASSES AND SERIES OF SECURITIES OF THE COMPANY.

         THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR UNDER
         ANY APPLICABLE STATE LAWS. THE SHARES REPRESENTED BY THIS CERTIFICATE
         HAVE BEEN ACQUIRED BY THE REGISTERED OWNER HEREOF FOR INVESTMENT AND
         NOT WITH A VIEW TO OR FOR SALE IN CONNECTION WITH ANY DISTRIBUTION
         THEREOF WITHIN THE MEANING OF THE 1933 ACT.

                                      -15-

<PAGE>

         THE SHARES MAY NOT BE SOLD, PLEDGED, TRANSFERRED OR ASSIGNED EXCEPT IN
         A TRANSACTION WHICH IS EXEMPT UNDER THE PROVISIONS OF THE 1933 ACT OR
         ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EFFECTIVE
         REGISTRATION STATEMENT OR IN A TRANSACTION OTHERWISE IN COMPLIANCE WITH
         APPLICABLE FEDERAL AND STATE SECURITIES LAWS.

         THE SALE, PLEDGE, TRANSFER, ASSIGNMENT OR OTHER DISPOSITION OF THE
         SHARES REPRESENTED BY THIS CERTIFICATE IS RESTRICTED BY AND SUBJECT TO
         THE PROVISIONS OF A PURCHASE AGREEMENT DATED AS OF SEPTEMBER 2, 2003, A
         COPY OF WHICH IS AVAILABLE UPON REQUEST FOR INSPECTION AT THE OFFICE'S
         OF THE COMPANY. ANY SUCH REQUEST SHOULD BE ADDRESSED TO THE SECRETARY
         OF THE COMPANY.

                  9. SUCCESSORS AND ASSIGNS; NO THIRD PARTY BENEFICIARIES. This
Agreement shall bind and inure to the benefit of the Company and the Purchasers
and the respective successors, permitted assigns, heirs and personal
representatives of the Company and the Purchasers; PROVIDED that the Company may
not assign its rights or obligations under this Agreement to any Person without
the prior written consent of the Purchasers, and PROVIDED FURTHER that the
Purchasers may not assign their rights or obligations under this Agreement to
any Person (other than an Affiliate) without the prior written consent of the
Company. This Agreement is intended for the benefit of the parties hereto and
their respective permitted successors and assigns, and is not for the benefit
of, nor may any provision hereof be enforced by, any other person.

                  10. NOTICES. Each notice, demand, request, request for
approval, consent, approval, disapproval, designation or other communication
(each of the foregoing being referred to herein as a notice) required or desired
to be given or made under this Agreement shall be in writing (except as
otherwise provided in this Agreement), and shall be effective and deemed to have
been received (i) when delivered in person, (ii) when sent by fax with receipt
acknowledged, (iii) five days after having been mailed by certified or
registered United States mail, postage prepaid, return receipt requested, or
(iv) the next business day after having been sent by a nationally recognized
overnight mail or courier service, receipt requested. Notices shall be addressed
as set forth below:

         If to any of the Purchasers, at the address set forth under such
Purchaser's name on SCHEDULE A.

         If to the Company:

                  CommVault Systems, Inc.
                  2 Crescent Place
                  Oceanport, New Jersey 07757
                  Attn:  N. Robert Hammer
                  Facsimile:  (732) 870-4514

         With a copy to:

                                      -16-

<PAGE>

                  Mayer, Brown, Rowe & Maw LLP
                  190 S. LaSalle Street
                  Chicago, Illinois 60603
                  Attention: Philip J. Niehoff
                  Facsimile: (312) 701-7711

                  11. FURTHER ASSURANCES. At any time or from time to time after
the Closing, the Company, on the one hand, and the Purchasers, on the other
hand, agree to cooperate with each other, and at the request of the other party,
to execute and deliver any further instruments or documents and to take all such
further action as the other party may reasonably request in order to evidence or
effectuate the consummation of the transactions contemplated hereby and to
otherwise carry out the intent of the parties hereunder.

                  12. PUBLIC DISCLOSURE. Except as required by Law or the rules
of any stock exchange (in which case the Company shall give Putnam notice at
least 24 hours prior to any public announcement containing its name), no public
announcement or other publicity regarding the transactions referred to herein
shall be made by any of the Purchasers or the Company or any of their respective
Affiliates, officers, directors, employees, representatives or agents, without
the prior written agreement of the Purchasers and Company, in any case, as to
form, content, timing and manner of distribution or publication; PROVIDED,
HOWEVER, that nothing in this Section shall prevent such parties from (i)
discussing such transactions with those Persons whose approval, agreement or
opinion, as the case may be, is required for consummation or subsequent review
of such particular transaction or transactions or (ii) disclosing such
information about such transactions in a registration statement or prospectus in
connection with the Initial Public Offering or (iii) if the disclosing party is
a Purchaser, disclosing such Purchaser's investment herein provided that such
disclosure does not mention any other Purchaser by name and is approved by the
Company in writing. Each of the parties acknowledge and agree that there would
be no adequate remedy at Law if it fails to perform its obligations under this
Section 12 and accordingly agrees that each of the other parties, in addition to
any other remedy to which it may be entitled at Law or in equity, shall be
entitled to compel specific performance of the obligations of the first party
under this Section 12.

                  13. WAIVER AND AMENDMENT. With the written consent of the
Company and the record holders of 66 2/3% of the Conversion Shares (including
the Conversion Shares represented by the Shares as if the Shares were converted
into Conversion Shares), (i) the obligations of the Company under this Agreement
and the rights of the holders of the Conversion Shares under this Agreement may
be waived (either generally or in a particular instance, either retroactively or
prospectively, and either for a specified period of time or indefinitely) or
(ii) this Agreement may be amended, changed, discharged or terminated.
Notwithstanding the foregoing, (x) if any waiver of any right or rights granted
to a Purchaser under this Agreement would uniquely affect such Purchaser, then
such waiver may be approved or granted by such Purchaser without the consent or
approval of any other Purchaser and (y) if any waiver or amendment of any right
or rights granted to a Purchaser under this Agreement would adversely affect
only a given Purchaser, then such amendment or waiver may not be effected
without the consent or approval of such affected Purchaser. Neither this
Agreement nor any provisions hereof may be amended, changed, waived, discharged
or terminated orally, but only by a signed statement in writing.

                                      -17-

<PAGE>

                  14. ENTIRE AGREEMENT. This Agreement and the Registration
Rights Agreement constitute the entire agreement, and supersede all other prior
agreements and understandings, both written and oral, among the parties hereto
and their affiliates with respect to the matters set forth herein.

                  15. SEVERABILITY. If any provision of this Agreement shall be
held invalid, illegal or unenforceable, the validity, legality or enforceability
of the other provisions hereof shall not be affected thereby, and there shall be
deemed substituted for the provision at issue a valid, legal and enforceable
provision as similar as possible to the provision at issue.

                  16. CAPTIONS. The Section references herein are for
convenience of reference only, do not constitute part of this Agreement and
shall not be deemed to limit or otherwise affect any of the provisions hereof.

                  17. COUNTERPARTS. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original but all of which
shall constitute one and the same instrument.

                  18. GOVERNING LAW. This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Delaware.

                  19. WAIVER OF JURY TRIAL. THE COMPANY AND THE PURCHASERS
HEREBY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
ACTION, PROCEEDING OR LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY.

                  20. JOINT PARTICIPATION IN DRAFTING. Each party to this
Agreement has participated in the negotiation and drafting of this Agreement. As
such, the language used herein shall be deemed to be the language chosen by the
parties hereto to express their mutual intent, and no rule of strict
construction will be applied against any party to this Agreement.

                  21. MASSACHUSETTS BUSINESS TRUSTS. A copy of the Agreement and
Declaration of Trust of each Putnam fund or series investment company (each a
"FUND") that is a Massachusetts business trust is on file with the Secretary of
State of the Commonwealth of Massachusetts and notice is hereby given that this
Agreement is executed on behalf of the Trustees of the relevant Fund as Trustees
and not individually and that the obligations of this Agreement are not binding
upon any of the Trustees, officers or shareholders of the Fund individually but
are binding only upon the assets and property of such Fund.

                                     * * * *

                                      -18-

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered as of the day and year first written above.

                         COMMVAULT SYSTEMS, INC.

                         By: /S/ N. ROBERT HAMMER
                             ---------------------------------------------------
                         Name:
                             ---------------------------------------------------
                         Title:
                              --------------------------------------------------



                                                              PURCHASE AGREEMENT
<PAGE>

                         PUTNAM OTC AND EMERGING GROWTH FUND
                         By Putnam Investment Management, LLC

                         By: /S/ CHARLES A. RUYS DE PEREZ
                             ---------------------------------------------------
                         Name: Charles A. Ruys de Perez
                         Title: Managing Director


                         TH LEE, PUTNAM INVESTMENT TRUST -
                         TH LEE, PUTNAM EMERGING
                         OPPORTUNITIES PORTFOLIO
                         By TH Lee, Putnam Capital Management, LLC

                         By: /S/ CHARLES A. RUYS DE PEREZ
                             ---------------------------------------------------
                         Name: CHARLES A. RUYS DE PEREZ
                               -------------------------------------------------
                         Title: MANAGING DIRECTOR
                                ------------------------------------------------


                         PUTNAM DISCOVERY GROWTH FUND
                         By Putnam Investment Management, LLC

                         By: /S/ CHARLES A. RUYS DE PEREZ
                             ---------------------------------------------------
                         Name: Charles A. Ruys de Perez
                         Title: Managing Director


                         PUTNAM WORLD TRUST II - PUTNAM EMERGING INFORMATION
                         SCIENCES FUND
                         By The Putnam Advisory Company, LLC

                         By: /S/ CHARLES A. RUYS DE PEREZ
                             ---------------------------------------------------
                         Name: Charles A. Ruys de Perez
                         Title: Managing Director



                                                              PURCHASE AGREEMENT
<PAGE>

                         VAN WAGONER PRIVATE OPPORTUNITIES FUND, L.P.

                         By: /S/ GARRETT VAN WAGONER
                             ---------------------------------------------------
                         Name: GARRETT VAN WAGONER
                               -------------------------------------------------
                         Title: GENERAL PARTNER
                                ------------------------------------------------


                         VAN WAGONER CAPITAL PARTNERS, L.P.

                         By: /S/ GARRETT VAN WAGONER
                             ---------------------------------------------------
                         Name: GARRETT VAN WAGONER
                               -------------------------------------------------
                         Title: GENERAL PARTNER
                                ------------------------------------------------



                                                              PURCHASE AGREEMENT
<PAGE>

                         WHEATLEY PARTNERS III, L.P.
                         By: Wheatley Partners III LLC, its General Partner

                         By: /S/ BARRY RUBENSTEIN
                             ---------------------------------------------------
                         Name: BARRY RUBENSTEIN
                               -------------------------------------------------
                         Title: CEO
                                ------------------------------------------------


                         WHEATLEY ASSOCIATES III, L.P.
                         By: Wheatley Partners III LLC, its General Partner

                         By: /S/ BARRY RUBENSTEIN
                             ---------------------------------------------------
                         Name: BARRY RUBENSTEIN
                               -------------------------------------------------
                         Title: CEO
                                ------------------------------------------------


                         WHEATLEY FOREIGN PARTNERS III, L.P.
                         By: Wheatley Partners III LLC, its General Partner

                         By: /S/ BARRY RUBENSTEIN
                             ---------------------------------------------------
                         Name: BARRY RUBENSTEIN
                               -------------------------------------------------
                         Title: CEO
                                ------------------------------------------------



                                                              PURCHASE AGREEMENT
<PAGE>

                         DLJ CAPITAL CORPORATION

                         By: /S/ KEITH B. GEESLIN
                             ---------------------------------------------------
                         Name: Keith B. Geeslin
                         Title: Managing Director


                         SPROUT CAPITAL IX, L.P.
                         By: DLJ Capital Corporation
                         Its: Managing General Partner

                         By: /S/ KEITH B. GEESLIN
                             ---------------------------------------------------
                         Name: Keith B. Geeslin
                         Its: Managing Director


                         SPROUT ENTREPRENEURS' FUND, L.P.
                         By: DLJ Capital Corporation
                         Its: Managing General Partner

                         By: /S/ KEITH B. GEESLIN
                             ---------------------------------------------------
                         Name: Keith B. Geeslin
                         Its: Managing Director


                         SPROUT IX PLAN INVESTORS, L.P.
                         By:  DLJ LBO Plans Management Corporation II
                         Its: General Partner

                         By: /S/ KEITH B. GEESLIN
                             ---------------------------------------------------
                         Name: Keith B. Geeslin
                         Its: Attorney in Fact



                                                              PURCHASE AGREEMENT
<PAGE>

                         /S/ THOMAS I. UNTERBERG
                         -------------------------------------------------------
                         THOMAS I. UNTERBERG


                         C.E. UNTERBERG, TOWBIN CAPITAL PARTNERS I, L.P.

                         By:  UTCM LLC
                         Its: General Partner

                         By: /S/ MARK G. HADLOCK
                             ---------------------------------------------------
                         Name: MARK G. HADLOCK
                               -------------------------------------------------
                         Title: SECRETARY OF UTCM, LLC
                                ------------------------------------------------



                                                              PURCHASE AGREEMENT
<PAGE>

                         CAMELOT CAPITAL L.P.

                         By: /S/ SCOTT M. SMITH
                             ---------------------------------------------------
                         Name: Scott M. Smith
                         Title: Managing Partner


                         CAMELOT CAPITAL II L.P.

                         By: /S/ SCOTT M. SMITH
                             ---------------------------------------------------
                         Name: Scott M. Smith
                         Title: Managing Partner


                         CAMELOT OFFSHORE FUND LIMITED

                         By: /S/ SCOTT M. SMITH
                             ---------------------------------------------------
                         Name: Scott M. Smith
                         Title: Managing Director



                                                              PURCHASE AGREEMENT
<PAGE>

                         AMERINDO INTERNET FUND PLC
                         BY: AMERINDO INVESTMENT INC.
                         ITS: MANAGER

                         By: /S/ GARY TANAKA
                             ---------------------------------------------------
                         Name: GARY TANAKA
                               -------------------------------------------------
                         Title: EXECUTIVE VICE PRESIDENT
                                ------------------------------------------------

                         /S/ K. FLYNN MCDONALD
                         -------------------------------------------------------
                         K. FLYNN MCDONALD

                         /S/ MICHAEL SANDIFER
                         -------------------------------------------------------
                         MICHAEL J. SANDIFER

                         /S/ MARC WEISS
                         -------------------------------------------------------
                         MARC WEISS


                                                              PURCHASE AGREEMENT
<PAGE>

                         AMAN VENTURES

                         By: /S/ WILLIAM J. BELL
                             ---------------------------------------------------
                         Name: WILLIAM J. BELL
                               -------------------------------------------------
                         Title: MANAGING PARTNER
                                ------------------------------------------------


                                                              PURCHASE AGREEMENT
<PAGE>

                         HFI PRIVATE EQUITY LTD.

                         By: /S/ BARRY SHAILER             /S/ HARRY WILKIN
                             ---------------------------------------------------
                         Name:   BARRY SHAILER                 HARRY WILKIN
                             ---------------------------------------------------
                         Title:  DIRECTOR                      DIRECTOR
                             ---------------------------------------------------


                                                              PURCHASE AGREEMENT
<PAGE>

                         DRW VENTURE PARTNERS LP

                         By: RBC Dain Rauscher Corporation, its
                         General Partner

                         By:/S/ MARY ZIMMER
                            ----------------------------------------------------
                         Name: MARY ZIMMER
                               -------------------------------------------------
                         Title: DIRECTOR OF FINANCE AND ADMINISTRATION, RBC
                                CAPITAL MARKETS SERVICES
                                ------------------------------------------------


                                                              PURCHASE AGREEMENT
<PAGE>
                                   SCHEDULE A

                                   PURCHASERS

NAME AND ADDRESS OF PURCHASER                 NUMBER OF SHARES       PRICE
-----------------------------                 ----------------       -----
Putnam OTC and Emerging Growth Fund               239,540      $   749,999.74
c/o Putnam Investment Management, LLC
Two Liberty Square
Boston, MA  02109

TH Lee, Putnam Investment Trust                   319,387      $ 1,000,000.70
TH Lee, Putnam Emerging Opportunities Portfolio
c/o Putnam Investment Management, LLC
Two Liberty Square
Boston, MA  02109

Putnam Discovery Growth Fund                       79,847      $   250,000.96
c/o Putnam Investment Management, LLC
Two Liberty Square
Boston, MA  02109

Putnam World Trust II - Putnam Emerging
Information Sciences                              159,693      $   499,998.78
Fund
c/o Putnam Investment Management, LLC
Two Liberty Square
Boston, MA  02109

Van Wagoner Capital Opportunities Fund, L.P.      463,111      $ 1,450,000.54
c/o Van Wagoner Capital Management
435 Pacific Avenue Suite 400
San Francisco, CA 94133
Attn: Garrett Van Wagoner
Fax: (415) 835-5050

Van Wagoner Capital Partners, L.P.                 15,969      $    49,998.94
Address same as above

Wheatley Partners III, L.P.                       335,296      $ 1,049,811.78
80 Cuttermill Road, Suite 311
Great Neck, NY 11021
Fax No.

with a copy to:

                                                              PURCHASE AGREEMENT

                                      A-1

<PAGE>

NAME AND ADDRESS OF PURCHASER                 NUMBER OF SHARES       PRICE
-----------------------------                 ----------------       -----
825 Third Avenue, 32d Floor
New York, NY 10022
Attn: Lawrence Wagenberg
Wheatley Associates III                            69,958      $   219,038.50
Address same as above

Wheatley Foreign Partners III                      73,826      $   231,149.20
address same as above

DLJ Capital Corporation                             3,899      $    12,207.77
c/o Sprout Group
11 Madison Avenue, 26th Floor
New York, NY 10010

Sprout Capital IX, L.P.                           778,878      $ 5,569,667.01
Address and notice same as above

Sprout Entrepreneurs' Fund, L.P.                    7,011      $    21,951.44
Address and notice same as above

Sprout IX Plan Investors, L.P.                     82,149      $   257,208.52
Address and notice same as above

Thomas I. Unterberg                               447,143      $ 1,400,004.73
c/o C.E. Unterberg, Towbin
350 Madison Avenue
New York, NY 10017
Facsimile: 212-389-8808

C.E. Unterberg, Towbin Capital Partners I, L.P.   159,693      $   499,998.78
350 Madison Avenue
New York, NY 10017
Attn: Mark G. Hadlock
Facsimile: 212-389-8401

Camelot Capital L.P.                              220,383      $   690,019.17
3 Pickwick Plaza
Greenwich, CT 06830 (203) 863-7400
Attn: Scott M. Smith
203-863-7400

Camelot Capital II L.P.                            15,763      $    49,353.95
address same as above

                                                              PURCHASE AGREEMENT

                                      A-2

<PAGE>

NAME AND ADDRESS OF PURCHASER                 NUMBER OF SHARES       PRICE
-----------------------------                 ----------------       -----
Camelot Offshore Fund Limited                      83,241      $   260,627.57
address same as above

Amerindo Internet Fund PLC c/o                    148,132      $   463,801.29
Amerindo Investment Advisors Inc.
399 Park Avenue, 22d Floor
New York, NY 10022
Attn: David Mainzer
Fax: 212-308-6988

K. FLYNN MCDONALD                                   8,000      $    25,048.00
One Embarcadero Center, Suite 2300
San Francisco, CA  94111-3162
Telephone:  (415) 249-1535
Facsimile:  (415) 834-3582

MICHAEL J. SANDIFER                                 3,500      $    10,958.50
6016 Lee Highway
Warrenton, VA  20187
Telephone:  (540) 428-2790
Facsimile:  (540) 428-2791

MARC WEISS                                         32,000      $   100,192.00
c/o Amerindo Investment Advisors Inc.
399 Park Avenue, 22nd Floor
New York, NY  10022
Telephone:  (212) 418-2520
Facsimile:  (212) 935-6975

HFI Private Equity Ltd                             24,084      $    75,407.00
Jardine House 4th Floor
33-35 Reid Street
Hamilton IIM 12 Bermuda
Attention: Barry Shailer
Facsimile: 441-295-3011

Aman Ventures                                      15,838      $    49,588.78
1500 Owl Creek Ranch Road
Aspen, CO 81611
Attention:
Facsimile: 970-923-8855

                                                              PURCHASE AGREEMENT


                                      A-3

<PAGE>

NAME AND ADDRESS OF PURCHASER                 NUMBER OF SHARES       PRICE
-----------------------------                 ----------------       -----
DRW Venture Partners L.P.                           4,461      $    13,967.39
60 South 6th Street
Minneapolis, MN 55402
Attn: Mary Zimmer MS 54N2
Facsimile:  (612) 373-1610

TOTAL SERIES CC                                                $15,000,001.06

                                                              PURCHASE AGREEMENT

                                      A-4

<PAGE>

                                   SCHEDULE B

                                  SUBSIDIARIES

CommVault Systems (Canada) Inc., a Canadian corporation
CommVault Systems Mexico S de RL de CV, a Mexican company
CommVault Holding Company BV, a Netherlands company
CommVault Systems Netherlands BV, a Netherlands company

                                                              PURCHASE AGREEMENT

                                      B-1

<PAGE>

                                   SCHEDULE C

                  1. Employment Agreement, dated as of January 20, 1999 and
amended as of May 3, 2001, between the Company and N. Robert Hammer, under which
Mr. Hammer has received options to purchase 5,622,400 shares of common stock.

                  2.Corporate Change of Control Agreements, between the Company
and (i) Louis Miceli, (ii) Brian McAteer, (iii) Larry Cormier, (iv) Al Bunte;
(v) David West; (vi) Scott Mercer and (vii) William Beattie.

                  3. Stock Plan dated as of May 22, 1996, pursuant to which the
Company is authorized to issue options to purchase 15,950,000 shares of its
common stock of which 14,525,731 shares have been granted.

                  4. The Company entered into an agreement with Northern
Concepts Incorporated ("NCI"), dated as of May 2000 pursuant to which 285,000
shares of the Company's common stock was issued in consideration for the
acquisition of the business of NCI by the Company.

                  5. Preferred Stockholders have (i) conversion rights, pursuant
to the Amended Certificate, and (ii) preemptive rights pursuant to (a) the
Stockholders' Agreement; (b) the Series AA Purchase Agreement, (c) the Series BB
Purchase Agreement and (d) the Existing Series CC Purchase Agreement.

                  6. EMC holds a warrant to purchase up to 3,000,000 shares of
common stock at an exercise of $6.27 per share. To the extent that EMC exercises
the warrant, holders of the Series AA Preferred Stock, Series BB Preferred Stock
and the holders of existing CC preferred stock will be entitled to purchase
shares of Common Stock of the Company at a price of $6.26 pursuant to preemptive
rights granted to such holders under their respective preferred stock purchase
agreements. Assuming that EMC exercises its warrant in full, the maximum number
of shares of Common Stock that would be sold pursuant to such preemptive rights
would be approximately 750,000 shares.

                                                              PURCHASE AGREEMENT

                                      C-1

<PAGE>

                                   SCHEDULE D

                         CORPORATE COMPLIANCE AGREEMENT
              EMPLOYEE INVENTION, CONFIDENTIALITY, NON-COMPETITION,
                      NON-SOLICITATION AND ETHICS AGREEMENT

         THIS AGREEMENT is made between me, the undersigned, and CommVault
Systems, Inc. and on behalf of CommVault Systems, Inc. and its affiliated
companies as they exist from time to time (hereafter referred to collectively as
"CommVault"), and in consideration of my employment by CommVault and in
consideration for the compensation to be paid to me in connection with this
employment:

                  1. DUTIES. I shall render faithful and efficient services to
CommVault and perform exclusively for CommVault such duties as may be designated
by CommVault from time to time, which may include the functions of inventing,
discovering and developing new and novel devices, methods, and principles
relating to the business, research, and development of CommVault.

                  2. DISCLOSURE OF INVENTIONS. I shall promptly disclose to
CommVault in writing all inventions (including, but not limited to, new
contributions, concepts, ideas, developments, discoveries, processes, formulas,
methods, compositions, techniques, articles, machines, and improvements), all
original works of authorship and all related know-how ("Inventions"), whether or
not patentable, copyrightable or protectable as trade secrets, conceived or made
by me, alone or with others, during the period of my employment with CommVault
and, in the case of clauses (b) and (c) below, during the period of my
employment by CommVault and at any time after I cease to be employed by
CommVault for whatever reason, which (a) relate in any manner to the actual or
anticipated business, research, or development of CommVault, (b) are developed
using equipment, supplies, facilities, trade secret or confidential information
of CommVault, or (c) result from work performed by me or work supervised by me
for CommVault.

                  3. ASSIGNMENT OF INVENTIONS. I shall assign and do hereby
assign to CommVault my entire rights to each Invention described in SECTION 2
hereof. As requested by CommVault, I will take all steps reasonably necessary to
assist CommVault in obtaining and enforcing any patent, copyright, or other
protection which CommVault elects to obtain or enforce, in any country, for the
Inventions which I assign to CommVault. I will take no action to jeopardize
CommVault's ability to obtain or enforce its rights in such Inventions. My
obligation to assist CommVault in obtaining and enforcing patents, copyrights,
and other protections shall continue beyond the termination of my employment by
CommVault for whatever reason, but CommVault shall compensate me at a reasonable
rate after the termination of my employment for time actually spent at
CommVault's request providing such assistance. If CommVault is unable, after
reasonable effort, to secure my signature on any document needed to apply for,
prosecute, or enforce any patent, copyright, or other protection in relation to
an

                                                              PURCHASE AGREEMENT

                                      C-2

<PAGE>

Invention, whether because of my physical or mental incapacity or for any
other reason whatsoever, I hereby irrevocably designate and appoint CommVault
and its duly authorized officers and agents as my agent and attorney-in-fact, to
act for and in my behalf and stead to execute and file any such document and to
do all other lawfully permitted acts to further the prosecution and enforcement
of patents, copyrights, or similar protections with the same legal force and
effect as if executed by me.

                  4. COMMVAULT CONFIDENTIAL INFORMATION. Because of my
employment by CommVault, I will have access to and will learn techniques,
know-how, or other information of a confidential nature concerning CommVault's
experimental and development work, trade secrets, procedures, business matters
or affairs, including, but not limited to, information relating to inventions,
disclosures, processes, systems, methods, formulas, patents, patent
applications, machinery, materials, research activities and plans, grant
proposals, costs of production, contract forms, prices, business plans,
strategies, competitive strengths and weaknesses, volume of sales, promotional
methods, and lists of names or classes of customers, as well as information of a
confidential nature received from CommVault's customers, joint ventures,
collaborators, etc., and information developed solely or jointly by me, included
in connection with Inventions ("CommVault Confidential Information").
Information shall, for purposes of this Agreement, be considered to be
confidential if not known by the trade generally, even though such information
has been disclosed to one or more third parties pursuant to distribution
agreements, joint research agreements, other agreements or collaborations
entered into by CommVault.

                  5. PROTECTION OF COMMVAULT CONFIDENTIAL INFORMATION. I shall
at all times use my best efforts and exercise utmost diligence to protect and
guard CommVault Confidential Information. I will not use CommVault Confidential
Information for personal gain or for any purpose outside of my employment by
CommVault or disclose any such information to any person or entity either during
or subsequent to my employment, without CommVault's prior written consent,
except to such an extent as may be necessary in the ordinary course of
performing my duties as an employee of CommVault.

                  6. USE OF COMMVAULT CONFIDENTIAL INFORMATION. I shall not, for
my own account or as an officer, member, employee, consultant, representative,
or advisor of another, during my employment with CommVault or at any time
thereafter for any reason whatsoever, engage in or contribute my knowledge to
engineering, development, manufacture, research, business analysis or sales
relating to any product, equipment, process, or material that relates in any way
to the actual or anticipated business or research and development of CommVault,
without the written permission of CommVault. However, the foregoing provision
shall not prohibit me from engaging in any work at any time after leaving the
employ of CommVault, PROVIDED, that CommVault Confidential Information is not
involved in such work AND I am not in violation of any other term of this
Agreement or any other agreement entered into between me and CommVault. The
provisions of this SECTION 6 shall not be construed as limiting to any extent my
continuing obligations pursuant to the provisions in SECTION 5.

                                                              PURCHASE AGREEMENT

                                      C-3

<PAGE>

                  7. IMPROPER USE OR DISCLOSURE OF CONFIDENTIAL INFORMATION. I
shall not, during my employment with CommVault, or at any time thereafter,
improperly use or disclose any proprietary information or trade secrets of any
former or current employer or other person or entity and I will not possess or
bring onto the premises of CommVault any such proprietary information without
the prior written consent of such employer, person or entity.

                  8. OTHER RESTRICTIONS ON EMPLOYEE. I represent that there are
no other agreements or requirements to assign any invention or discovery
conceived or made by me, alone or with others, unless I have so indicated at the
end of this Agreement.

                  9. DISCLOSURE IF INVENTIONS. I represent that I have listed
and described in detail at the end of this Agreement all inventions, if any,
patented and unpatented, which I conceived or made PRIOR to my employment by
CommVault. Any invention not so listed and described shall be presumed to have
been made during my employment by CommVault.

                  10. RETURN OF COMMVAULT COMPANY INFORMATION. Upon termination
of my employment with CommVault for any reason, I shall disclose and provide to
CommVault all originals and all copies which are in my possession or under my
control, of all notes, memoranda, records, reports, drawings, blueprints, codes,
programs. Software, manuals, materials and data of any nature which are the
property of CommVault, which shall include, but not be limited to, every item in
my possession or under my control which contains any CommVault Confidential
Information.

                  11. NON-COMPETITION AND NON-SOLICITATION. I acknowledge that
because my knowledge of the CommVault Confidential Information and the personal
contacts with the customers and employees of CommVault acquired by me during my
employment, CommVault would be irreparably damaged should I, in any manner or
form, enter into any form of competition with CommVault. I, therefore agree that
at all times during my employment and for a period of TWELVE (12) MONTHS
thereafter, I will not directly or indirectly, in any individual or
representative capacity, carry on, engage or participate in any business that is
in competition in any manner whatsoever with the business of CommVault, except
as expressly provided for in this Agreement, or as may hereafter be expressly
agreed to in writing by CommVault. Further, I agree to not directly or
indirectly hire, seek to hire, or refer for other employment any current
employee of CommVault nor will I, in any manner or capacity, directly or
indirectly: divert or attempt to divert from CommVault, through any means
whatsoever, any business or customers of CommVault, during the TWELVE (12) MONTH
period following my termination of employment. The phrase "carry on, engage or
participate in any business that is in competition in any manner whatsoever with
the business of CommVault" shall include, but not be limited to, the doing by
you or by any person, firm, corporation, association or other entity that
directly or indirectly, through one or more intermediaries, is controlled by, or
is under common control with, or controls you, of any of the following acts
other than as related to your services to CommVault pursuant to your employment
with CommVault: carrying on, engaging in or participating in any such business
as a principal, for your own account or solely, or jointly with others as a

                                                              PURCHASE AGREEMENT

                                      C-4

<PAGE>

partner (general or limited), joint venturer, shareholder or holder of any
equity security of any other corporation or entity, or as a consultant,
contractor, or subcontractor or agent of or for any person, firm, corporation,
association, or other entity or through any agency or by any other means
whatsoever; or utilizing for your own benefit, or making available to any
person, firm, corporation, association or other entity, any confidential or
proprietary proposals, financial statements, governmental filings, cost data,
business plans or correspondence relating to such information, or other
CommVault Confidential Information. I acknowledge and agree that, in light of
the nature of the business of CommVault, the foregoing activity and time period
restrictions are reasonable and properly required for the adequate protection of
CommVault, and that, in the event any such activity or time period restriction
is deemed to be unreasonable or unenforceable by a court of competent
jurisdiction, then I agree to submit to the reduction of such activity or time
period restriction to the extent necessary to enable the court to enforce such
restrictions to the fullest extent permitted under applicable law. It is the
desire and intent of the parties that the provisions of this Agreement shall be
enforced to the fullest extent permissible under the laws and public policies
applied by any jurisdiction where enforcement is sought.

                  12. ETHICS. I understand and agree at all times to: (a) follow
the policies and guidelines of CommVault, as set forth by CommVault from time to
time; (b) represent CommVault in a professional manner exhibiting appropriate
behavior consistent with the highest ethical standards; (c) not make any
disparaging comment or statement (written or oral) about CommVault; (d) comply
with all applicable federal, state, and local laws, ordinances, regulations and
codes, including all Security and Exchange Commission laws and regulations; and,
(e) to apply for national security or other governmental clearance, if requested
by CommVault.

                  13. GENERAL

         (a) I understand and agree that the restrictions of this Agreement are
limited only to those restrictions necessary for the adequate and legitimate
protection of CommVault. Each paragraph and subparagraph of this document is
separate from each other and constitutes a separate and distinctive covenant. In
the event any limitation hereunder is deemed to be unreasonable by a court of
competent jurisdiction, then I agree to submit to the reduction of such
limitation as the court shall deem reasonable. In the event that I am in
violation of any limitation herein, then the time limitation shall be extended
for a period of time equal to the period of time during which such breach should
occur.

         (b) I understand that nothing in this Agreement shall confer upon me
any right to continue in the employ of CommVault. I understand that the
restrictions contained in this Agreement shall survive the termination of my
employment with CommVault for any reason.

         (c) I certify that I have not entered into, and I agree to not enter
into any agreement, either written or oral, in conflict with this Agreement.

                                                              PURCHASE AGREEMENT

                                      C-5

<PAGE>

         (d) I hereby authorize CommVault to notify others, including, without
limitation, customers of CommVault and my future employers, of the terms of this
Agreement and my responsibilities hereunder.

         (e) This Agreement shall be governed by the laws of the State of New
Jersey, without regard to New Jersey choice of law principles, and adjudicated
in the courts located in the State of New Jersey. Each paragraph and
subparagraph shall be independent and separable from all other paragraphs and
subparagraphs, and the invalidity of a paragraph and subparagraph shall not
affect the enforceability of any of the other paragraphs and subparagraphs. For
purposes of this Agreement, the business of CommVault shall include the business
of any corporation, firm, or partnership, directly or indirectly, controlled by,
controlling, or under common control with CommVault or any partner or joint
venturer of CommVault. For any violation of this Agreement, a restraining order
and/or an injunction may be issued against me in addition to any other rights
CommVault may have under applicable law. In the event any party to this
Agreement is successful in any suit or proceeding brought or instituted with
respect to this Agreement or to enforce the Agreement, the prevailing party will
be paid by the losing party, in addition to other costs and damages, reasonable
attorney's fees and costs.

         (f) This Agreement shall be effective during the period of my
employment by CommVault and for any periods thereafter as set forth herein,
inure to the benefit of any successor or assignee of CommVault, and be binding
upon my heirs, administrators, and representatives.

I acknowledge that I am entering into this Agreement knowingly and voluntarily,
and that I have had an opportunity to review it with counsel of my choosing.


------------------------------------
Employee Signature

Dated:
      ------------------------------

USE THE SPACE BELOW AND THE BACK OF THIS AGREEMENT (IF NECESSARY) TO LIST ANY
AND ALL INVENTIONS CONCEIVED OR MADE BY ME PRIOR TO MY EMPLOYMENT WITH
COMMVAULT, AND A DETAILED DESCRIPTION THEREOF, AND OTHER AGREEMENTS OR
REQUIREMENTS TO ASSIGN INVENTIONS OR DISCOVERIES, AS DESCRIBED IN SECTIONS 8 AND
9 ABOVE.

                                                              PURCHASE AGREEMENT

                                      C-6
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.18
<SEQUENCE>7
<FILENAME>y17249a2exv10w18.txt
<DESCRIPTION>EX-10.18: SOFTWARE LICENSE AGREEMENT
<TEXT>
<PAGE>

[***] INDICATES THAT TEXT HAS BEEN OMITTED WHICH IS THE SUBJECT OF A
CONFIDENTIAL TREATMENT REQUEST. THIS TEXT HAS BEEN FILED SEPARATELY WITH THE
SEC.

                                                                   EXHIBIT 10.18

                          SOFTWARE LICENSING AGREEMENT

THIS SOFTWARE LICENSE AGREEMENT is entered into as of this 17th day of December,
2003 (hereinafter "Effective Date") by and between Dell Products L.P.
(hereinafter "Dell") with its principal place of business at One Dell Way, Round
Rock, Texas 78682, and CommVault Systems, Inc., a Delaware corporation having a
principal place of business at 2 Crescent Place, Oceanport, New Jersey 07757
(hereinafter "Licensor").

1.0  DEFINITIONS

1.1  AGREEMENT shall mean this Software License Agreement and its Supplement.

1.2  LICENSED PRODUCT(S) shall mean: (i) the software in object code form and
     documentation listed in the Supplement to this Software License Agreement
     and (ii) all improvements, corrections, modifications, alterations,
     revisions, extensions, upgrades, national language versions and/or
     enhancements to the software in object code form and/or documentation made
     during the term of this Agreement (hereinafter "Updates").

1.3  SUPPLEMENT shall mean the supplement executed under this Software License
     Agreement. The supplement shall describe the Licensed Product(s) and may
     include additional terms and conditions such as compensation, delivery
     schedules, technical contacts and other information related to the Licensed
     Product(s). The terms and conditions of this Software License Agreement
     shall apply to the Supplement.

2.0  OBJECT CODE LICENSE

2.1  Licensor hereby grants to Dell a non-exclusive, worldwide, and, subject to
     Section 9, below, irrevocable right and license, under all copyrights,
     patents, patent applications, trade secrets and other necessary
     intellectual property rights, to: (i) use, make, execute, reproduce,
     display, perform, the Licensed Product(s), in object code form, (ii)
     distribute and license, the Licensed Product(s), in object code form, as
     part of, in conjunction with, or for use with, Dell systems and (iii)
     authorize, and license third parties to do any, some or all of the
     foregoing. Dell shall have the option to distribute the Licensed Product(s)
     to end users pursuant to Licensor's end user license agreement

2.2  The above grant includes, without limitation, the right and license to: (i)
     use Licensor's trade names, product names and trademarks (the "Trademarks")
     in connection with the marketing and distribution of Licensed Product(s)
     and (ii) all pictorial, graphic and audio visual works including icons,
     screens and characters created as a result of execution of the Licensed
     Product(s). Dell's use of the Trademarks shall be in accordance with
     applicable trademark law. Dell agrees to consistently identify the
     Trademarks as being the property of Licensor. Dell agrees that the
     Trademarks are and will remain the sole property of Licensor and agrees not
     to do anything inconsistent with that ownership. Dell shall (a) comply with
     any requirements established by Licensor concerning the style, design,
     display and use of the Trademarks, (b) correctly use the "(R)" registration
     and "(TM)" symbols, (c) use the Trademark solely in connection with the
     appropriate products, (d) promptly inform Licensor of the use of any marks
     similar to the Trademarks and any potential infringements of the Trademarks
     which comes to Dell's attention, and (e) not misuse the Trademarks or
     engage in any unlawful activity in any way related to the use of the
     Trademarks. Dell will indemnify, defend and hold harmless Licensor and its
     officers, directors, employees and agents from and against any and all
     liabilities, losses, damages, claims, costs and expenses (including without
     limitation, reasonable attorney's fees and expenses) arising out of (i)
     misuse of the Trademarks, (ii) any statements or representations made to
     any person or entity by the Dell or its agents concerning the Products and
     (iii) any other negligent, reckless or wrongful conduct of the Dell or its
     agents arising in connection with its activities related to this Agreement
     or the Products. All sales and promotions materials (including, without
     limitation, labels, stickers, packaging or software documentation) which
     include any Trademark shall be subject to the advance review and approval
     of Licensor; it being understood that once Licensor has approved any
     particular use, Licensor need not approve any additional use which is
     substantially the same as that which has been previously approved, provided
     such future use complies with the foregoing obligations regarding Trademark
     usage. When requested, Dell shall send samples of advertising and
     promotional materials bearing any Trademark, samples of any goods bearing
     or sold under any Trademark, and any other documentation which may permit
     Licensor to determine whether the Trademark uses conform to the
     requirements of this Agreement..

Dell Confidential                       1

<PAGE>

2.3  Licensor hereby grants to Dell a non-exclusive, worldwide, and, subject to
     Section 9, below irrevocable right and license, under all copyrights,
     patents, patent applications, trade secrets and other necessary
     intellectual property rights, to internally: (i) use, execute, reproduce,
     display, perform, and distribute the Licensed Product(s), for the purposes
     of enabling Dell to maintain, service and manufacture the Licensed
     Product(s) and (ii) authorize, and license third parties to do any, some or
     all of the foregoing on Dell's behalf.

3.0  COMPENSATION; PER COPY ROYALTIES, SUPPORT PRICING, AND MAINTENANCE PRICING

3.1  Dell will pay Licensor a per copy royalty as set forth in the Pricing
     Supplement for each copy of the Licensed Product(s) distributed by Dell for
     revenue. No per copy royalties shall be due for copies of the Licensed
     Product(s): (i) used or distributed for demonstration, marketing or
     training purposes, (ii) distributed to a customer as a replacement for a
     defective copy or to fix an error, (iii) used to repair or maintain a
     customer's system, (iv) held for backup or archival purposes, (v) returned
     by a customer, (vi) used for manufacturing or testing purposes or (vii)
     distributed to an existing customers as an upgrade to their existing copy
     of the Licensed Product(s).

3.2  Unless provided otherwise in a Schedule, all prices will be in U.S. dollars
     and are exclusive of applicable value, added, sales, use, excise, or
     similar taxes for which Dell shall be obligated to pay licensor. Dell will
     have no liability for any taxes based on Licensor's net assets or income or
     for which Dell has an appropriate resale or other exemption. Licensor shall
     be the importer of record for VAT/GST purposes (applicable in the country
     of incorporation). All payments shall be made in United States currency.
     Licensor acknowledges that there is no minimum aggregate royalty due under
     this Agreement and that any royalties received will be based solely on the
     criteria set forth above. Licensor acknowledges and agrees that Dell has
     the right to withhold any applicable taxes from any royalties due under
     this Agreement if required by any government agency.

3.3  Dell shall pay Licensor the amounts set forth in the Pricing Supplement
     during the term of this Agreement and for so long thereafter as Licensor
     has any obligations under Exhibit C ("Support") or to provide maintenance
     as described in Section 4.2 below.

4.0  SUPPORT, TRAINING AND MAINTENANCE

4.1  Licensor shall, at its expense, train Dell personnel to set up, install,
     configure and operate the Licensed Product(s) and provide such other
     training to assist and enable Dell to fully perform and exercise its rights
     under this Agreement. Such training shall be completed thirty (30) days
     prior to Dell's commercial introduction of the Licensed Product(s).
     Thereafter, further training of additional Dell personnel will be conducted
     by the Dell personnel previously trained by Licensor. Additional training
     periods for Updates, if any shall also be provided at Licensor's expense
     and within a mutually agreed upon time period.

4.2  During the term of this Agreement, and for a period of up to three years
     after the termination of the Agreement, as long as Dell has not breached
     this Agreement, Licensor shall, provide Dell with all maintenance releases
     generally made available by Licensor to licensees of the Licensed
     Product(s).

4.3  During the term of this Agreement, and for a period of up to three years
     after the termination of the Agreement, as long as Dell has not breached
     this Agreement, the parties shall provide and comply with the Support
     obligations set forth in Exhibit C.,

5.0  END USER LICENSE
     Dell acknowledges that all software sold separately or with hardware and
     obtained by Dell from Licensor is proprietary to Licensor and its licensors
     and is subject to patents and/or copyrights owned by Licensor and/or its
     licensors. Any references to "purchases" of software and Products
     containing software products signify only the purchase of a license to use
     the software in question pursuant to the terms of the Licensor's then
     current applicable end user license agreement, as provided to Dell,, a copy
     of which Licensor has and will have included with the Products and which is
     incorporated herein in its entirety by this reference for the term of this
     Agreement. Notwithstanding anything to the contrary contained herein, Dell
     agrees to be bound by all of the terms of such end

Dell Confidential                       2

<PAGE>

     user license agreement and agrees that it will acquire no rights with
     respect to such software Product other than the right to use such software
     pursuant to the terms of such software license agreement.

6.0  REPRESENTATIONS AND WARRANTIES

     On an ongoing basis, Licensor represents and warrants that:

     (a)  the Licensed Product(s) will operate in accordance with its written
          specifications;

     (b)  Licensor has all the necessary rights, titles and interests in the
          Licensed Product(s) to grant Dell the rights and licenses contained in
          this Agreement;

     (c)  the Licensed Product(s) shall not infringe any copyright, patent,
          trade secret or any other intellectual property rights or similar
          rights of any third party;

     (d)  the Licensed Product(s) does not contain any known viruses,
          expiration, time-sensitive devices or other harmful code that would
          inhibit the end user's use of the Licensed Product(s) or Dell system;

     (e)  Licensor and the Licensed Product(s) comply with all governmental
          laws, statutes, ordinances, administrative orders, rules and
          regulations and that Licensor has procured all necessary licensees and
          paid all fees and other charges required so that Dell can exercise the
          rights and license granted under this Agreement;

     (f)  Licensor has a proprietary and invention assignment agreement for
          employees which provides for a waiver or agreement not to assert any
          rights in the Licensed Product(s)

     (g)  There is no restriction of any relevant governmental authority which
          prohibits the export of the Licensed Product(s) to countries outside
          the United States and Canada, other than those laws of the United
          States which prohibit exports generally , as may be modified from time
          to time, including without limitation, to Libya, Cuba, North Korea,
          Syria, Sudan, Iran and Iraq; and

     (h)  Licensor has and will continue to comply with all applicable
          governmental laws, statutes, rules and regulations including, but not
          limited to, those related to export of product and technical data, and
          Licensor agrees that for any updates, upgrades and new products which
          are licensed to Dell pursuant to the terms of this Agreement, Licensor
          shall provide prior written notice of any facts which would make the
          foregoing representations untrue.

     (i)  Either (i) the Licensed Product(s) are not encrypted, nor do they
          contain encryption capability; or (ii) if the Licensed Product(s) does
          contain encryption capabilities, Licensor agrees to adhere to the
          requirements described in Exhibit A.

In addition to Licensor's end user license agreement, Licensor hereby makes the
following additional ongoing representations and warranties:

     (l)  Licensor will warrant the Licensed Product(s) directly to the end-user
          in accordance with the terms and conditions set forth in Licensor's
          end-user license agreement; and

     (m)  Licensor has agreed to honor all replacement requests received from
          Dell or end users under the terms of Licensors end user license
          agreement pertaining to defective Licensed Product(s).

7.0  LIMITED WARRANTY

     Licensor warrants that the Products sold hereunder shall be new and shall
     operate substantially in accordance with its user documentation for a
     period of ninety (90) days from the date of shipment by Licensor
     (hereinafter the "Warranty Period"). If, during the Warranty Period, Dell
     believes any Product to be defective, Dell shall immediately notify
     Licensor in writing and shall follow Licensor's instructions regarding the
     return of such Product. Licensor's sole liability to Dell, and Dell's sole
     remedy, shall be, at Licensor's option, (i) repair or replacement of the
     Product which does not comply with this Limited Warranty, or (ii) return of
     the amount paid by Dell for the Product which does not comply with the
     Limited Warranty. In the event Licensor determines that the Product is in
     compliance with this Limited Warranty, Dell shall pay the cost of all
     charges associated with the inspection and shipment of such Product by
     Licensor.

Dell Confidential                       3

<PAGE>

     LICENSOR DOES NOT WARRANT THAT THE PRODUCTS WILL OPERATE UNINTERRUPTED OR
     ERROR FREE. THIS LIMITED WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES.
     LICENSOR DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT
     OR BY OPERATION OF LAW, STATUTORY OR OTHERWISE, AND LICENSOR EXPRESSLY
     EXCLUDES AND DISCLAIMS ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A
     PARTICULAR PURPOSE, SATISFACTORY QUALITY, AND NONINFRINGEMENT OF
     INTELLECTUAL PROPERTY RIGHTS. THE PROVISIONS SET FORTH ABOVE STATE
     LICENSOR'S ENTIRE RESPONSIBILITY AND YOUR SOLE AND EXCLUSIVE REMEDY WITH
     RESPECT TO ANY BREACH OF ANY WARRANTY.

     NO CONSEQUENTIAL DAMAGES. LICENSOR WILL NOT, UNDER ANY CIRCUMSTANCES, BE
     LIABLE TO DELL OR ANY OTHER PARTY, FOR COSTS OF PROCUREMENT OF SUBSTITUTE
     PRODUCTS OR SERVICES, LOST PROFITS, LOST OPPORTUNITY COSTS, LOSS OF
     INFORMATION OR DATA OR ANY OTHER SPECIAL, INDIRECT OR CONSEQUENTIAL
     DAMAGES, REGARDLESS OF THE FORM OF ACTION ARISING OUT OF OR RELATING TO
     THIS WARRANTY OR RESULTING FROM THE SALE OF PRODUCTS OR USE BY DELL OR ANY
     OTHER PARTY OF SUCH PRODUCTS, EVEN IF LICENSOR HAS BEEN NOTIFIED OF THE
     POSSIBILITY OF SUCH DAMAGES AND NOTWITHSTANDING ANY FAILURE OF AN ESSENTIAL
     PURPOSE OF THIS LIMITED WARRANTY.

8.0  INDEMNIFICATION

8.1  Licensor shall fully indemnify, defend and hold harmless Dell, Dell, Inc.,
     Dell, Inc.'s subsidiaries and affiliates and all of the foregoing entities'
     officers, directors, employees, agents, customers and licensees, and their
     successors and assigns, from and against any and all third party claims,
     actions, suits, legal proceedings, demands, liabilities, damages, losses,
     judgments, settlements, costs and expenses, including, without limitation,
     attorney's fees, arising out of or in connection with any alleged or
     actual:

               (i) infringement by Licensor and/or the Licensed Product(s) of
          any copyright, patent, trade secret or other intellectual property
          rights or similar rights of any third party;

               (ii) damage to any real and tangible property, personal injury,
          death or any other damages or losses sustained by whomever suffered,
          resulting, or claimed to result, in whole or in part from any alleged
          or actual defect in the Licensed Product(s) whether latent or patent,
          including any alleged or actual improper construction or design or the
          failure of the Licensed Product(s) to comply with its written
          specifications or any express or implied warranties.

8.2  In the event that Dell becomes aware of any such claim, Dell shall: (i)
     notify Licensor of such claim, (ii) cooperate with Licensor in the defense
     thereof. Licensor and Dell, at Dell's discretion, shall have the right to
     participate in the defense of any such claim or action. Dell shall not
     settle any such claims without the Licensor's prior consent, which consent
     shall not be unreasonably withheld. If Dell complies with the provisions
     hereof, Licensor will pay all damages, costs and expenses finally awarded
     to third parties against Dell in such action.

8.3  In addition to Licensor's obligations under Subsection 8.1 above, in the
     event that a claim of infringement is made with regard to the Licensed
     Product(s), or in Licensor's opinion might be held to infringe as set forth
     above, Licensor shall, at its own expense and option, procure for Dell the
     right to exercise the rights and licenses granted to Dell under this
     Agreement or modify the Licensed Product(s) such that it is no longer
     infringing. If neither of such alternatives is, in Licensor's opinion,
     commercially reasonable, the infringing Product shall be returned to
     Licensor and Licensor 's sole liability, in addition to its obligation to
     reimburse awarded damages, costs and expenses set forth above, shall be to
     refund the amounts paid to Licensor by Dell for such Product. Licensor will
     have no liability for any claim of infringement arising as a result of
     Dell's use of a Product in combination with any items not supplied by
     Licensor, or any modification of a Product by Dell or third parties.

     THIS SECTION 8 STATES THE ENTIRE LIABILITY OF LICENSOR TO DELL OR ANY
     SUBSEQUENT PURCHASER, LESSEE, END USER OR ASSIGNEE OF PRODUCTS CONCERNING
     INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS, INCLUDING BUT NOT LIMITED TO,
     PATENT, COPYRIGHT AND TRADE SECRET RIGHTS.

Dell Confidential                       4

<PAGE>

9.0  TERM AND TERMINATION OF AGREEMENT

9.1  Unless earlier terminated as provided below, the term of this Agreement
     shall be for three (3) years from the Effective Date and, unless either
     party gives thirty (30) days notice of nonrenewal prior to the end of the
     initial term or any renewal term, this Agreement shall automatically renew
     for successive one (1) year periods.

9.2  Either Party may, at its option and upon written notice to the other Party,
     terminate this Agreement if: (a) a material breach of this Agreement by the
     other Party is not remedied within thirty (30) Days after the breaching
     Party's receipt of written notice of the breach; (b) the other Party admits
     in writing its inability to pay its debts generally as they become due,
     files a petition for bankruptcy or executes an assignment for the benefit
     of creditors or similar document; (c) a receiver, trustee in bankruptcy or
     similar officer is appointed for the other Party's property; or (d) a
     majority interest of the equity or assets of the other Party is transferred
     to an unrelated third party or this Agreement is assigned without the prior
     written consent of the other Party to this Agreement. Dell may terminate
     this Agreement without cause upon prior written notice to the other party.
     Neither party will have any liability to the other arising from such a
     termination of the Agreement, provided the termination is properly noticed

9.3  All licenses and sublicenses granted to customers and other licensees under
     this Agreement, and all provisions of Sections, 9.0, 10.0 and 11.0, shall
     survive any expiration or termination of this Agreement and shall bind the
     parties and their successors, heirs, assigns and legal representatives. In
     addition, Licensor's obligations under Section 4, 5, 6,7 and 8 shall
     survive for one (1) year after any expiration or termination of this
     Agreement in order for Dell to satisfy its then existing contractual
     obligations to its customers and licensees. Dell shall retain a limited
     license in accordance with Section 2 to use the Licensed Product(s) in
     order to satisfy such obligations and to exhaust its inventory of Licensed
     Product(s) existing at expiration or termination, provided that Dell's
     right to exhaust any such inventory shall not extend beyond 180 days after
     expiration or termination. Thereafter, Dell agrees to return or destroy all
     additional copies of the Licensed Product(s) in its possession.

10.0 LIMITATION OF LIABILITIES

10.1 EXCEPT AS SET FORTH IN SECTION 10.2, NEITHER PARTY SHALL BE LIABLE FOR ANY
     INDIRECT, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES UNDER ANY PART OF
     THIS AGREEMENT EVEN IF ADVISED OR AWARE OF THE POSSIBILITY OF SUCH DAMAGES.

10.2 EXCEPT FOR LICENSOR'S OBLIGATIONS UNDER SECTION 9 "INDEMNIFICATION" AND
     SECTION 12 "CONFIDENTIALITY", DELL AGREES THAT LICENSOR'S LIABILITY TO DELL
     IN ANY WAY CONNECTED WITH THE SALE OF PRODUCTS TO DELL, REGARDLESS OF THE
     FORM OF ACTION, SHALL IN NO EVENT EXCEED THE PRICE PAID BY DELL FOR SUCH
     PRODUCTS. UNDER NO CIRCUMSTANCES WILL LICENSOR BE LIABLE FOR ANY DAMAGES
     RESULTING FROM LICENSOR 'S FAILURE TO MEET ANY DELIVERY SCHEDULE, EVEN IF
     LICENSOR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT
     WILL LICENSOR BE LIABLE FOR COSTS OF PROCUREMENT OF SUBSTITUTE PRODUCTS OR
     SERVICES, LOST PROFITS, LOST OPPORTUNITY COSTS OR ANY SPECIAL, INDIRECT,
     CONSEQUENTIAL OR INCIDENTAL DAMAGES, HOWEVER CAUSED AND ON ANY THEORY OF
     LIABILITY, ARISING IN ANY WAY OUT OF THESE TERMS OR THE SALE OF PRODUCTS OR
     SERVICES TO DELL. THIS LIMITATION SHALL APPLY EVEN IF LICENSOR HAS BEEN
     ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND NOTWITHSTANDING ANY FAILURE
     OF ESSENTIAL PURPOSE OF ANY LIMITED WARRANTY.

11.0 CONFIDENTIAL INFORMATION

11.1 The parties agree that information exchanged under this Agreement that is
     considered by either party to be confidential information will be subject
     to the terms and conditions of the non-disclosure agreement in place
     between the parties. If the parties have not executed a non-disclosure
     agreement, the parties will negotiate in good faith the terms of such an
     agreement. Licensor shall not provide to Dell any information that is
     considered confidential information of any third party.

Dell Confidential                       5

<PAGE>

11.2 At Dell's request, which shall not be made more frequently than once per
     quarter per year, Licensor will provide unaudited, or audited, financial
     statements to Dell.

12.0 [***]

13.0 MISCELLANEOUS

13.1 This Agreement shall in no way preclude Dell from independently developing,
     having developed or acquiring or marketing any products or services nor
     shall it in any way preclude Dell from entering into any similar agreement
     with any other party.

13.2 Dell shall have full freedom and flexibility in its decisions concerning
     the distribution and marketing of the Licensed Product(s) including,
     without limitation, the decision of whether or not to distribute or
     discontinue distribution of the Licensed Product(s). Dell does not
     guarantee that its marketing, if any, of the Licensed Product(s) will be
     successful.

13.3 This Agreement may not be assigned by Licensor, in whole or in part,
     including without limitation by operation of law, in a merger or stock or
     asset sale, without the express written permission of Dell. If Licensor
     makes any attempt to assign this Agreement without Dell's written consent,
     Dell will have the option to immediately terminate this Agreement. No
     permitted assignment or subcontract by Licensor shall relieve Licensor of
     any obligations hereunder. Licensor shall always remain jointly and
     severally liable with any assignees under this Agreement. In the event Dell
     terminates this Agreement under this section Licensor will have no
     liability to Dell in respect of such termination.

13.4 Licensor is an independent contractor. Licensor is not a legal
     representative or agent of Dell, nor shall Licensor have the right or
     authority to create or incur any liability or any obligation of any kind,
     express or implied, against, or in the name of, or on behalf of Dell.

13.5 Provider represents and warrants that the prices for Products shall not be
     less favorable than prices applicable to sales by Provider to any other
     customer purchasing like quantities of the same products under comparable
     terms. If at any time during the term of this Agreement Provider accords to
     any other such customer more favorable prices, Provider shall immediately
     offer to sell the Products to Dell at equivalent prices accorded to such
     other customer. Dell, or Dell's agent, may audit Provider's compliance with
     this Section 5 upon reasonable notice to Provider and subject to the
     confidentiality provisions of Section 15 of this Agreement and the
     applicable NDA, Dell may audit Provider's manufacturing locations or
     corporate headquarters and review and copy any information reasonably
     relevant to the purpose of any audit permitted by this Agreement.
     Notwithstanding anything to the contrary contained herein, Licensor shall
     have no obligation to disclose confidential information which is the
     subject of another confidentiality agreement. In addition, Dell may: (a)
     inspect Products at any stage of production or testing; (b) review
     Provider's facilities and quality control procedures; and (c) accompany
     Dell customers on visits to Provider's manufacturing locations. Provider
     will furnish, or cause to be furnished (without charge), all reasonable
     facilities and assistance necessary for the safety and convenience of any
     personnel performing the audits.

13.6 Licensor shall not publicize the existence of this Agreement with Dell nor
     refer to Dell in connection with any promotion or publication without the
     prior written approval of Dell. Further, Neither Party shall disclose the
     terms and conditions of this Agreement to any third party, including, but
     not limited to, any financial terms, except as required by law or with the
     prior written consent of the other Party.

13.7 Licensor shall comply with all applicable governmental laws, statutes,
     ordinances, administrative orders, rules and regulations including, without
     limitation, those related to the export of technical materials. Licensor
     shall provide Dell with prompt written notice of any export restrictions
     related to the Licensed Product(s).

13.8 Any and all written notices, communications and deliveries between Licensor
     and Dell with reference to this Agreement shall be deemed made on the date
     of mailing if sent by registered or certified mail to the respective
     address of the other party as follows:

Dell Confidential                       6

<PAGE>

              In the case of Dell:        Dell Products L.P.
                                          One Dell Way
                                          [***]
                                          Round Rock, TX 78682
                                          Attn: [***]

              In the case of Licensor:    CommVault Systems, Inc.
                                          2 Crescent Place
                                          Oceanport, NJ 07757
                                          Attn: Finance
                                                Cc: Legal Department

13.9  This Agreement shall be governed by and interpreted in accordance with the
      laws of the State of New York, U.S.A. without regards for its rules of
      conflict of laws, as if this Agreement was executed in and fully performed
      within the State of New York. Both parties hereby waive any right to a
      trial by jury relating to any dispute arising under or in connection with
      this Agreement.

13.10 Should any provision herein be held by a court of competent jurisdiction
      to be illegal, invalid or unenforceable, such provision shall be modified
      to reflect the intentions of the parties. All other terms and conditions
      shall remain in full force and effect.

13.11 No amendment, modification or waiver of any provision of this Agreement
      shall be effective unless set forth in a writing executed by an authorized
      representative of each party. No failure or delay by either party in
      exercising any right, power or remedy will operate as a waiver of any such
      right, power or remedy. No waiver of any provision of this Agreement shall
      constitute a continuing waiver or a waiver of any similar provision unless
      expressly set forth in a writing signed by an authorized representative of
      each party.

13.12 Since Dell transacts business with the United States government, Licensor
      must comply with the applicable federal laws and Federal Acquisition
      Regulations ("FARs") including the following:

      It is Dell's policy to take affirmative action to provide equal employment
      opportunity without regard to race, religion, color, national origin, age,
      sex, disability, veterans status or any other legally protected status. As
      a condition of doing business, Dell requires Licensor to practice equal
      opportunity employment and to comply with Executive Order 11246, as
      amended, Section 503 of the Rehabilitation Act of 1973, and Section 4212
      of the Vietnam Era Veteran's Readjustment Assistance Act of 1974, all as
      amended, and the relevant Regulations and Orders of the U.S. Secretary of
      Labor. Additionally, to the extent required by applicable law, the
      following sections of Chapter 60 of Title 41 of the Code of Federal
      Regulations are incorporated by reference in this Agreement and each
      Order: 41 CFR 60-1.4(a); 41 CFR 60-1.8; 41 CFR 60-741; 41 CFR 60-250; 41
      CFR 60-1.7; 41 CFR 60-1.40.

      It is the policy of the United States (FAR 52.219-8) that small business
      concerns, small business concerns owned and controlled by socially and
      economically disadvantaged individuals and small business concerns owned
      and controlled by women shall have the maximum practicable opportunity to
      participate in performing contracts for any Federal agency. Licensor
      agrees to comply with this policy and to provide reporting of data as
      requested to the Small Business Liaison Officer, Dell, Inc., One Dell Way,
      Round Rock, Texas, 78682.

13.13 This Agreement sets forth the entire agreement and understanding of the
      parties relating to the subject matter contained herein, and merges all
      prior discussions and agreements, both oral and written, between the
      parties. Nothing in any purchase order, invoice, order acknowledgment, or
      other document of Licensor shall be of any effect whatsoever and may not
      affect, alter, or modify the terms and conditions of this Agreement. If
      the terms and conditions of this Agreement conflict with any terms of a
      Dell purchase order relating to the Licensed Product(s), the terms and
      conditions of this Agreement shall govern. The terms and conditions set
      forth in Supplements are hereby incorporated into this Software License
      Agreement by reference. If the terms and conditions of this Software
      License Agreement conflict with any terms and conditions contained in a
      Supplement, the terms and conditions of the Supplement shall govern.

Dell Confidential                       7

<PAGE>

13.14      [***]

IN WITNESS WHEREOF, the parties hereto have duly executed this Software License
Agreement by their respective duly authorized officers to be effective as of the
Effective Date as first written above.

DELL PRODUCTS L.P.                     COMMVAULT SYSTEMS, INC.

By: /s/ Illegible                      By: /s/ David R. West

Title: Director, WWP                   Title: VP Business Development

Date: Dec 22, 2003                     Date: Dec. 18, 2003

Dell Confidential                       8

<PAGE>

                                    EXHIBIT A

                        SOFTWARE COMPLIANCE QUESTIONNAIRE

NOTE: ENCRYPTED SOFTWARE EXPORT CONTROLS

In accordance with the U.S. Export Administration Regulations, certain software
and items possessing encryption capabilities may require formal export licenses
before they can be exported and/or re-exported from the United States.

In order to make proper licensing determinations of your software and/or
commodity it is essential that you complete the questions on the following page.

If you need assistance or have questions, please contact [***] at: [***] or tel:
[***].

If your software has not been classified and you have questions on how to
classify your software, refer to the BXA (Bureau of Export Administration)
Website at http://www.bxa.doc.gov. Under the category of Getting Help and
Contacting Us, click on the General Fact Sheets. Then click on Explanation of
what commodity classifications are or Guidance on requesting a commodity
classification.

If you are unable to provide the information required, please forward this
questionnaire to your Export Controls or Legal department.

This is a legal matter which deals with regulations on export controls and
compliance. We trust we can count on your maximum cooperation, in providing us
with the requested information by return fax to [***], or e-mail to [***].

Yours truly,

Dell, Inc.
Worldwide Export Compliance Organization

Dell Confidential                       9

<PAGE>

SOFTWARE QUESTIONNAIRE

     COMPANY NAME: _____________________________________________________________

     PRODUCT NAME & VERSION NUMBER: _______________ COUNTRY OF ORIGIN: _________

     EXPORT COMMODITY CONTROL NUMBER (ECCN): __________ LICENSE EXCEPTION: _____

     IF YOUR LICENSE EXCEPTION IS ENC, HAVE YOU HAD YOUR 1X REVIEW FOR RETAIL
     EXEMPTION? YES OR NO

CCAT NUMBER: _____________

IF PRODUCT IS 5D002, ENC, PLEASE PROVIDE A COPY OF THE BXA CLASSIFICATION
VERIFICATION (CCAT).

1.    What is the functionality of your software (i.e.: word processing,
      engineering/design, communication, operating system, etc.)?
      ___________________________________________________________


2.    What type of equipment is the software used to support (i.e.:
      telecommunications, manufacturing/test, computers, etc.)? Please be
      specific.
      ___________________________________________________________

3.    Is your software available to the public via sales from stock at retail
      selling points by means of "over-the-counter" transactions, mail order,
      or telephone call transactions (Mass Market)?

      _______________________ IF YES, PLEASE FORWARD A COPY OF BXA APPROVAL.

4.    Is your software designed for installation by the user without further
      substantial support (substantial support does not include telephone (voice
      only) help line services for installation or basic operation, or basic
      operation training provided by the supplier? _____________________________
      _________________________________

5.    Does your software or commodity have encryption capabilities? ____________
      _______________________

IF THE ANSWER TO QUESTION 5 ABOVE IS "NO", YOU DO NOT NEED TO COMPLETE THE
REMAINING QUESTIONS ON THIS FORM.

6.    What function does the encryption provide (i.e.: password protection, data
      encryption, etc.? Please be specific.
      _______________________________________________________________________

7.    Does the data encryption algorithm exceed a key space of 64 bits?  _______
      ____________________

8.    What is the specific bit level of encryption? ____________________________
      ___________________

9.    Does your software or commodity allow the alteration of the data
      encryption mechanism and its associated key spaces by the user?
      ______________________________________________________________

10.   Please provide a brief written summary of the encryption technology used
      in the design of the software or commodity in question. Please be sure to
      identify the type of algorithm used.
      _____________________________________________________________________
      _____________________________________________________________________

Dell Confidential                       10

<PAGE>

11.   Is there an EXPORT version of the software named above? __________________
      _______________

THIS FORM COMPLETED BY:

Name: ________________ Title: ________________ Signature: ____________________

Date: _______________ Phone #: ________________

Dell Confidential                      11

<PAGE>

                               PRICING SUPPLEMENT
                                     TO THE
                          SOFTWARE LICENSING AGREEMENT
                                     BETWEEN
                                      DELL
                                        &
                             COMMVAULT SYSTEMS, INC.

<TABLE>
<CAPTION>
SKU DESCRIPTION              [***]      [***]        MSRP      DISCOUNT
---------------              -----      -----       -----      --------
<S>                          <C>        <C>         <C>        <C>
[***]                        [***]      [***]       [***]        [***]

[***]                        [***]      [***]       [***]        [***]

[***]                        [***]      [***]       [***]        [***]

[***]                        [***]      [***]       [***]        [***]

[***]                        [***]      [***]       [***]        [***]

[***]                        [***]      [***]       [***]        [***]

[***]                        [***]      [***]       [***]        [***]

[***]                        [***]      [***]       [***]        [***]

[***]                        [***]      [***]       [***]        [***]

[***]                        [***]      [***]       [***]        [***]

[***]                        [***]      [***]       [***]        [***]

[***]                        [***]      [***]       [***]        [***]

[***]                        [***]      [***]       [***]        [***]

[***]

[***]                                               [***]        [***]
</TABLE>

Dell Confidential                       12

<PAGE>

                                   SCHEDULE C
                               ENTERPRISE SUPPORT

[***]

Dell Confidential                      13
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.19
<SEQUENCE>8
<FILENAME>y17249a2exv10w19.txt
<DESCRIPTION>EX-10.19: ADDENDUM ONE TO THE LICENSE AND DISTRIBUTION AGREEMENT
<TEXT>
<PAGE>

[***] INDICATES THAT TEXT HAS BEEN OMITTED WHICH IS THE SUBJECT OF A
CONFIDENTIAL TREATMENT REQUEST. THIS TEXT HAS BEEN FILED SEPARATELY WITH THE
SEC.

                                                                   EXHIBIT 10.19

                                  ADDENDUM ONE
                                     TO THE
                       LICENSE AND DISTRIBUTION AGREEMENT
                                     BETWEEN
                               DELL PRODUCTS L.P.
                                       AND
                             COMMVAULT SYSTEMS, INC.

This Addendum One ("Addendum One") to the Software License Agreement dated
December 17, 2003 (the "Agreement"), is entered into by and between DELL
PRODUCTS L.P. (HEREINAFTER "DELL") WITH ITS PRINCIPAL PLACE OF BUSINESS AT ONE
DELL WAY, ROUND ROCK, TEXAS 78682, AND COMMVAULT SYSTEMS, INC., (HEREINAFTER
"COMMVAULT") A DELAWARE CORPORATION HAVING A PRINCIPAL PLACE OF BUSINESS AT 2
CRESCENT PLACE, OCEANPORT, NEW JERSEY 07757 AND IS EFFECTIVE AS OF THE 11TH DAY
OF MARCH, 2004 (THE "EFFECTIVE DATE")

                                    RECITALS

WHEREAS, COMMVAULT and Dell entered into the Agreement through which COMMVAULT
granted Dell various rights to distribute certain COMMVAULT software products;

WHEREAS, the parties now desire to amend the Agreement.

NOW THEREFORE, in consideration of the mutual covenants and promises set forth
herein and for other good and valuable consideration, the receipt of which both
parties hereby acknowledge, Dell and COMMVAULT agree as follows:

Any capitalized terms defined in this Addendum are specific to this Addendum
only, and do not modify or change the meaning set forth in the Agreement. Unless
expressly defined in this Addendum, the capitalized terms in this Addendum are
as defined in the Agreement. The Agreement shall remain in full force and effect
except as supplemented and amended herein.

1. COMMVAULT agrees to assist Dell with processing orders and key codes for as
long as Dell continues to offer customers COMMVAULT software products. Both
parties will work to define a mutually agreeable process.

Customer Data: To the extent that COMMVAULT received Dell's customer data,
including but not limited to customer name, telephone number, address, email
address or any data that identifies a particular customer ("Customer Data"),
COMMVAULT shall (i) treat such data as confidential in accordance with the
Confidentiality provisions of this Agreement, Dell's posted Privacy Policy, as
attached Exhibit A to this Addendum One, and any applicable laws, rules, and
regulations; (ii) use such data only as necessary to perform the requested
service and not for any independent marketing activities, and (iii) transmit
such data via secure means.

In the event that Dell's Privacy Policy changes and Dell desires to update the
policy, Dell shall notify COMMVAULT of the change by written notice, at which
time Exhibit A of this Addendum One will be deemed to have been amended with the
updated policy.

2. Replace the first sentence of section 3.1 with the following:

      "Within [***] days after the end of Dell's fiscal quarters, as described
in Section 3.4 below, Dell will report and pay COMMVAULT a per copy royalty as
set forth in the Pricing Supplement for each copy of the Licensed Product(s)
distributed by Dell for revenue."

3. Add the following section 3.4:

Confidential                         Page 1

<PAGE>

[***] INDICATES THAT TEXT HAS BEEN OMITTED WHICH IS THE SUBJECT OF A
CONFIDENTIAL TREATMENT REQUEST. THIS TEXT HAS BEEN FILED SEPARATELY WITH THE
SEC.

      "3.4 Dell shall submit royalty reports within [***] days after the end of
Dell's [***]. For the purposes of royalty reporting, Dell's [***] are
approximately: [***]."

4. The Pricing Supplement to Agreement is hereby replaced in its entirety with
the attached Exhibit B to this Addendum. For clarification purposes, the term
"Update Protection" shall mean that COMMVAULT will provide, on a when-and-if
available basis, any error fixes, release updates and modifications but not any
new functionality sets that are sold separately by COMMVAULT, as evidenced by a
separate sku classification and shall also include Level III support, as
specified in Section 4.0 of Schedule C to the Agreement.

No other changes or modification are intended by this Addendum. All other terms
and conditions of the Agreement are in effect.

IN WITNESS WHEREOF, the parties have executed this Addendum by their duly
authorized representatives as of the date first set forth above.

COMMVAULT SYSTEMS INC.                    DELL PRODUCTS L.P.

By:     /s/ David West                    By:      /s/ Joseph Kanicki
   --------------------------------          -------------------------------

Name:   David West                        Name:    Joseph Kanicki
     ------------------------------            -----------------------------

Title:  VP Business Development           Title:   Senior Manager
      -----------------------------             ----------------------------

Date:   4/27/04                           Date:    May 5, 2004
     ------------------------------            -----------------------------

Confidential                         Page 2

<PAGE>

                                    EXHIBIT A
                              DELL'S PRIVACY POLICY

                              DELL'S PRIVACY POLICY
                            As posted on www.dell.com

Dell respects your privacy. Across our business, around the world, we will only
collect, store and use your personal information for defined purposes. We use
your information to support and enhance our relationship with you, for example,
to process your purchase, provide service and support, and share product,
service and company news and offerings with you. We do not sell your personal
information. We only share your personal data outside the Dell family of
companies with your consent, as required by law or to protect Dell, its
customers, or the public, or with companies that help Dell fulfill its
obligations with you, and then only with partners who share Dell's commitment to
protecting your privacy and data. At any time you may contact Dell with any
privacy questions or concerns you may have. You also may ask at any time to see
the data you have given us and request correction or deletion. We strive to
ensure a high level of security and confidentiality.

PRIVACY AND DATA SECURITY

At Dell, your right to privacy and data security is a primary concern. That's
why, when you visit dell.com, we help you maintain control over your personal
data on the Internet. Below are the guidelines we use for protecting the
information you provide us during a visit to our Internet site or when you use
our online support offerings such as support.dell.com or support applications
loaded on your computer. Please refer to your warranty statement or Dell's Total
Satisfaction Policy for policies that apply to information contained on hard
drives returned to Dell. Other Dell and Dell co-branded sites may operate under
their own privacy and security policies. Visit www.nclnet.org/essentials to
learn more about how to protect your privacy on the Internet through a consumer
education campaign called Online E-ssentials, developed by Dell in partnership
with the National Consumers League.

Dell is a proud participant in the BBB Online(R) Privacy Program. The BBB OnLine
Privacy Program is backed by an organization noted for its expertise and
experience in conducting successful national self-regulation programs - the
Council of Better Business Bureaus. The mission of BBB OnLine is to promote
trust and confidence on the Internet by advocating ethical online business
practices. Further information about this program is available at
http://www.bbbonLine.org.

Dell's Privacy statement discloses the privacy guidelines for the entire
domestic Dell Web site. THE GUIDELINES AT THIS SITE ARE APPLICABLE ONLY TO THIS
DOMESTIC WEB SITE.

LOGO

DELL ONLY ASKS FOR SPECIFIC TYPES OF PERSONAL INFORMATION

In a few areas on our Web site and online customer support tools, we ask you to
provide information that will enable us to enhance your site visit, to assist
you with technical support issues or to follow up with you after your visit. It
is completely optional for you to participate.

For example, we request information from you when you:

      1.    Register on dell.com
      2.    Request a quote
      3.    Place an order
      4.    Provide feedback in an online survey
      5.    Participate in a sweepstakes or other promotional offer
      6.    Request e-mail notification of your order status (called "Order
            Watch")
      7.    Subscribe to a newsletter or a mailing list

Confidential                         Page 3

<PAGE>

      8.    Request assistance from our "Product Advisor"
      9.    Fill our a support request

In each of the instances above, we may ask for your name, e-mail address, phone
number, address, type of business, customer preference information, customer
number and service tag number, as well as other similar personal information
that is needed to register or subscribe you to services or offers. If we ever
ask for significantly different information we will inform you. In the case of
newsletters or mailing lists, you will be able to "unsubscribe" to these
mailings at any time.

DELL ONLY USES YOUR PERSONAL INFORMATION FOR SPECIFIC PURPOSES

The information you provide will be kept confidential and used to support your
customer relationship with Dell. Among other things, we want to help you quickly
find information on dell.com and alert you to product upgrades, special offers,
updated information and other new products and services from Dell. Agents or
contractors of Dell who have access to your personal information and prospect
information are required to keep the information confidential and not use it for
any other purpose than to carry out the services they are performing for Dell.
Dell may enhance or merge your information collected at its site with data from
third parties for purposes of marketing products or services to you.

In addition, Dell may be required to disclose personal information in connection
with law enforcement, fraud prevention, regulation, and other legal action or if
Dell reasonably believes it is necessary to do so to protect Dell, its
customers, or the public.

YOU CAN OPT-OUT OF RECEIVING FURTHER MARKETING FROM DELL AT ANY TIME

Periodically, we may send you information about our various products and
services, or other products and services we feel may be of interest to you. Only
Dell (or agent working on behalf of Dell and under confidentiality agreements)
will send you these direct mailings. If you do not want to receive such
mailings, simply tell us when you give us your personal information. Or, at any
time you can easily opt-out of receiving further marketing from Dell by clicking
here.

DELL WILL NOT DISCLOSE YOUR PERSONAL INFORMATION TO ANY OUTSIDE ORGANIZATION FOR
ITS USE IN MARKETING WITHOUT YOUR CONSENT

Information regarding you (such as name, address and phone number) or your order
and the products you purchase will not be given or sold to any outside
organization for its use in marketing or solicitation without your consent. Your
information may be shared with agents or contractors of Dell for the purposes of
performing services for Dell.

INTERNET COMMERCE

The online store at dell.com is designed to give you options concerning the
privacy of your credit card information, name, address, e-mail and any other
information you provide us. Dell is committed to data security with respect to
information collected on our site. We offer the industry standard security
measures available through your browser called SSL encryption, (please see
Dell's Store Security page for details on these security measures). If at any
time you would like to make a purchase, but do not want to provide your credit
card information online, you may contact a sales representative over the
telephone. Simply call 1-800-WWW-DELL. It has always been a Dell practice to
contact customers in the event of a potential problem with your purchase or any
normal business communication regarding your purchase.

CUSTOMIZED EXPERIENCE

We use technology to help us deliver customized visitor experiences. At Dell, we
primarily use "cookies" to help us determine which service and support
information is appropriate to your machine and to maintain your shopping
experience in our online store. Our use of this technology does not mean that we
automatically know any information about you. We might be able to ascertain what
type of computer you are using, but beyond that, our use

Confidential                         Page 4

<PAGE>

of cookies is designed only to provide you with a better experience when using
www.dell.com. Dell has no desire or intent to infringe on your privacy while
using the dell.com site. For more information about our use of cookies, please
click here.

THIRD-PARTY SALES

Please be aware that other web sites that may be accessed through our site may
collect personally identifiable information about you. The information practices
of those third-party web sites linked to Dell.com are not covered by this
privacy statement. We generally use the "___" symbol to mark links that go to
third-party sites.

You are solely responsible for maintaining the secrecy of your passwords or any
account information. Please be careful and responsible whenever you're online.
If you post personal information online that is accessible to the public, you
may receive unsolicited messages from other parties in return. While we strive
to protect your personal information, Dell cannot ensure or warrant the security
of any information you transmit to us, and you do so at your own risk.

CHILDREN'S PRIVACY (AGE 12 AND UNDER)

Dell takes children's privacy seriously.

Dell does not seek to collect personal information about children through its
Web site. Dell does not condition a child's participation in an activity on the
disclosure of more personal information than is reasonably necessary to
participate in the activity.

If we become aware that a person submitting a personal information to us through
any part of our Web site is a child, we delete the information as soon as we
discover it and do not use it for any purpose, nor do we disclose it to third
parties.

Since we do not seek to collect any personal information about children, and we
delete any information collected inadvertently as soon as we discover that a
child has submitted it, we typically retain no information about children that
could be reviewed or deleted. If a parent requests review or deletion of
information about their child before we have discovered and deleted the
information, then we will of course honor that request.

OTHER WEB SITES

Dell's Web site contains links to other Web sites that are not operated by Dell.
Dell is not responsible for the privacy practices of the Web sites that it does
not operate. Some parts of the Web site are animated using various downloadable
applications, such as Macromedia's Shockwave/Flash. We also make video available
through RealNetwork's Media-Player, and use the video hosting services of
Broadcast.com. Futures-Careers, Macromedia, RealNetworks, and Broadcast.com
operate under their own privacy and security policies, and the way they may
collect and use information can be further evaluated at: www.macromedia.com,
www.realnetworks.com, and www.broadcast.com.

CONTACT DELL

Dell is the sole operator of the Dell Web site. If you would like to contact us
for any reason regarding our privacy practices, please write us at the following
address:

Dell Computer Corporation
Attention:  Privacy
One Dell Way
Round Rock, Texas  78682

You may also click here and fill out the e-mail form under the topic: "Privacy
Info: Request"

Confidential                         Page 5

<PAGE>

DELL WANTS TO HELP YOU KEEP YOUR PERSONAL INFORMATION ACCURATE

You can request the individual information that Dell has collected by submitting
a request here. To view or edit the information that has been stored online,
please visit the My Account section of the Dell Web site.

Effective Date:  Oct. 11, 2003

Confidential                         Page 6

<PAGE>

                                    EXHIBIT B
                               PRICING SUPPLEMENT
                        TO THE SOFTWARE LICENSE AGREEMENT
                           BETWEEN DELL PRODUCTS L.P.
                           AND COMMVAULT SYSTEMS INC.

<TABLE>
<CAPTION>
                                                                                             1YR
                                                                               DELL         UPDATE      3YR UPDATE
SKU DESCRIPTION      [***]       [***]            MSRP        DISCOUNT       SW COST      PROTECTION    PROTECTION
---------------      -----       -----        -----------     --------     -----------   -----------   ------------
<S>                  <C>         <C>          <C>             <C>          <C>           <C>           <C>
 [***]               [***]       [***]        $     [***]       [***]      $     [***]   $     [***]   $     [***]
 [***]               [***]       [***]        $     [***]       [***]      $     [***]   $     [***]   $     [***]
 [***]               [***]       [***]        $     [***]       [***]      $     [***]   $     [***]   $     [***]
 [***]               [***]       [***]        $     [***]       [***]      $     [***]   $     [***]   $     [***]
 [***]               [***]       [***]        $     [***]       [***]      $     [***]   $     [***]   $     [***]
 [***]               [***]       [***]        $     [***]       [***]      $     [***]   $     [***]   $     [***]
 [***]               [***]       [***]        $     [***]       [***]      $     [***]   $     [***]   $     [***]
 [***]               [***]       [***]        $     [***]       [***]      $     [***]   $     [***]   $     [***]
 [***]               [***]       [***]        $     [***]       [***]      $     [***]   $     [***]   $     [***]
 [***]               [***]       [***]        $     [***]       [***]      $     [***]   $     [***]   $     [***]
 [***]               [***]       [***]        $     [***]       [***]      $     [***]   $     [***]   $     [***]
 [***]               [***]       [***]        $     [***]       [***]      $     [***]   $     [***]   $     [***]
 [***]               [***]       [***]        $     [***]       [***]      $     [***]   $     [***]   $     [***]
 [***]
 [***]
 [***]
 [***]
 [***]
 [***]
 [***]                                        $     [***]       [***]      $     [***]   $     [***]   $     [***]
</TABLE>

Confidential                         Page 7
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.20
<SEQUENCE>9
<FILENAME>y17249a2exv10w20.txt
<DESCRIPTION>EX-10.20: ADDENDUM TWO TO THE LICENSE AND DISTRIBUTION AGREEMENT
<TEXT>
<PAGE>

[***] INDICATES THAT TEXT HAS BEEN OMITTED WHICH IS THE SUBJECT OF A
CONFIDENTIAL TREATMENT REQUEST. THIS TEXT HAS BEEN FILED SEPARATELY WITH THE
SEC.

                                                                   EXHIBIT 10.20

                                  ADDENDUM TWO
                                     TO THE
                       LICENSE AND DISTRIBUTION AGREEMENT
                                     BETWEEN
                               DELL PRODUCTS L.P.
                                       AND
                             COMMVAULT SYSTEMS, INC.

This Addendum Two ("Addendum Two") to the Software License Agreement dated
December 17, 2003 (the "Agreement"), is entered into by and between DELL
PRODUCTS L.P. (HEREINAFTER "DELL") WITH ITS PRINCIPAL PLACE OF BUSINESS AT ONE
DELL WAY, ROUND ROCK, TEXAS 78682, AND COMMVAULT SYSTEMS, INC., (HEREINAFTER
"COMMVAULT") A DELAWARE CORPORATION HAVING A PRINCIPAL PLACE OF BUSINESS AT 2
CRESCENT PLACE, OCEANPORT, NEW JERSEY 07757 AND IS EFFECTIVE AS OF THE 30TH DAY
OF OCTOBER, 2004 (THE "EFFECTIVE DATE").

                                    RECITALS

WHEREAS, COMMVAULT and Dell entered into the Agreement through which COMMVAULT
granted Dell various rights to distribute certain COMMVAULT software products;

WHEREAS, the parties now desire to amend the Agreement.

NOW THEREFORE, in consideration of the mutual covenants and promises set forth
herein and for other good and valuable consideration, the receipt of which both
parties hereby acknowledge, Dell and COMMVAULT agree as follows:

Any capitalized terms defined in this Addendum are specific to this Addendum
only, and do not modify or change the meaning set forth in the Agreement. Unless
expressly defined in this Addendum, the capitalized terms in this Addendum are
as defined in the Agreement. The Agreement shall remain in full force and effect
except as supplemented and amended herein.

      1.    The Pricing Supplement to the Agreement is hereby replaced in its
            entirety with the attached Exhibit B to this Addendum.

      2.    [***]. Dell shall coordinate with CommVault support to ensure that
            customers who receive support and product updates are eligible for
            such services. CommVault's MSRP for annual maintenance contracts is
            [***] of product list price. Dell's cost to CommVault is [***] of
            software cost and reflected in the Exhibit B to this Addendum.

No other changes or modification are intended by this Addendum. All other terms
and conditions of the Agreement are in effect.

IN WITNESS WHEREOF, the parties have executed this Addendum by their duly
authorized representatives as of the date first set forth above.

<PAGE>

COMMVAULT SYSTEMS INC.                    DELL PRODUCTS L.P.

By:    /s/ David R. West                  By:    /s/ Joseph Kanicki
   -----------------------------------       -----------------------------------
Name:  David R. West                      Name:  Joe Kanicki
     ---------------------------------         ---------------------------------
Title: VP Business Development            Title: Sr. Manager - WWSP
      --------------------------------          --------------------------------
Date:  11/15/2004                         Date:  11/22/2004
     ---------------------------------         ---------------------------------

<PAGE>

                                    EXHIBIT B
                               PRICING SUPPLEMENT
                        TO THE SOFTWARE LICENSE AGREEMENT
                           BETWEEN DELL PRODUCTS L.P.
                           AND COMMVAULT SYSTEMS INC.

<TABLE>
<CAPTION>
                                                                                                  DELL SW              1 YR. UPDATE
SKU           SKU DESCRIPTION       [***]        [***]           MSRP              DISCOUNT         COST                PROTECTION
------        ---------------       -----        -----        -----------          --------     ------------           -------------
<S>           <C>                   <C>          <C>          <C>                  <C>          <C>                    <C>
                                                 [***]
SKU1          [***]                 [***]        [***]        $     [***]           [***]        $    [***]             $     [***]
SKU2          [***]                 [***]        [***]        $     [***]           [***]        $    [***]             $     [***]
SKU3          [***]                 [***]        [***]        $     [***]           [***]        $    [***]             $     [***]
SKU4          [***]                 [***]        [***]        $     [***]           [***]        $    [***]             $     [***]
SKU5          [***]                 [***]        [***]        $     [***]           [***]        $    [***]             $     [***]
SKU6          [***]                 [***]        [***]        $     [***]           [***]        $    [***]             $     [***]
SKU7          [***]                 [***]        [***]        $     [***]           [***]        $    [***]             $     [***]
SKU8          [***]                 [***]        [***]        $     [***]           [***]        $    [***]             $     [***]
SKU9          [***]                 [***]        [***]        $     [***]           [***]        $    [***]             $     [***]
SKU10         [***]                 [***]        [***]        $     [***]           [***]        $    [***]             $     [***]
SKU11         [***]                 [***]        [***]        $     [***]           [***]        $    [***]             $     [***]
SKU12         [***]                 [***]        [***]        $     [***]           [***]        $    [***]             $     [***]
SKU13         [***]                              [***]        $     [***]           [***]        $    [***]             $     [***]
SKU14         [***]                 [***]        [***]        $     [***]           [***]        $    [***]             $     [***]
SKU15         [***]                 [***]        [***]        $     [***]           [***]        $    [***]             $     [***]
SKU16         [***]                                           $     [***]           [***]        $    [***]             $     [***]
SKU17         [***]                                           $     [***]           [***]        $    [***]             $     [***]
SKU18         [***]                                           $     [***]           [***]        $    [***]             $     [***]
SKU19         [***]                                           $     [***]           [***]        $    [***]             $     [***]
</TABLE>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.21
<SEQUENCE>10
<FILENAME>y17249a2exv10w21.txt
<DESCRIPTION>EX-10.21: ADDENDUM THREE TO THE LICENSE AND DISTRIBUTION AGREEMENT
<TEXT>
<PAGE>

[***] INDICATES THAT TEXT HAS BEEN OMITTED WHICH IS THE SUBJECT OF A
CONFIDENTIAL TREATMENT REQUEST. THIS TEXT HAS BEEN FILED SEPARATELY WITH THE
SEC.

                                                                   EXHIBIT 10.21

                                 ADDENDUM THREE
                                     TO THE
                       LICENSE AND DISTRIBUTION AGREEMENT
                                     BETWEEN
                               DELL PRODUCTS L.P.
                                       AND
                             COMMVAULT SYSTEMS, INC.

This Addendum ("Addendum") to the Software License Agreement dated December 17,
2003 (the "Agreement"), is entered into by and between Dell Products L.P.
(hereinafter "Dell") with its principal place of business at One Dell Way, Round
Rock, Texas 78682, and CommVault Systems, Inc., (hereinafter "Commvault" or
"Supplier"), a Delaware corporation having a principal place of business at 2
Crescent Place, Oceanport, New Jersey 07757 (hereinafter "Licensor") and is
effective as of the 1st day of May, 2005 (the "Effective Date").

                                    RECITALS

WHEREAS, COMMVAULT and Dell entered into the Agreement through which COMMVAULT
granted Dell various rights to distribute certain COMMVAULT software products;

WHEREAS, the parties now desire to amend the Agreement to provide that COMMVAULT
shall, for an additional fee, take on Level 2 Support obligations for new and
existing customers commencing on the Effective Date.

NOW, THEREFORE, in consideration of the mutual covenants and promises set forth
herein and for other good and valuable consideration, the receipt of which both
parties hereby acknowledge, Dell and COMMVAULT agree as follows:

Any capitalized terms define din this Addendum are specific to this Addendum
only, and do not modify or change the meaning set forth in the Agreement. Unless
expressly defined in this Addendum, the capitalized terms in this Addendum are
as defined in the Agreement. The Agreement shall remain in full force and effect
except as supplemented and amended herein.

1. Section 4.0 of Schedule C, Enterprise Support shall be modified by replacing
the existing first sentence in such section so that it reads as follows:

      [***]

2. Section 2 of Addendum Two to the License and Distribution Agreement, dated as
of October 30, 2004, which sets forth the price that Dell pays CommVault for
annual maintenance contracts, shall be amended in its entirety so that it reads
as follows:

      [***]. Dell shall coordinate with CommVault support to ensure that
      customers who receive support and product updates are eligible for such
      services. CommVault's MSRP

                                     Page 1
<PAGE>

[***] INDICATES THAT TEXT HAS BEEN OMITTED WHICH IS THE SUBJECT OF A
CONFIDENTIAL TREATMENT REQUEST. THIS TEXT HAS BEEN FILED SEPARATELY WITH THE
SEC.

      for annual maintenance contracts is [***] of product list price. Dell's
      cost to CommVault is [***] of software cost and reflected in the Exhibit B
      to this Addendum.

3.    A new Section 3.5 shall be added to the Agreement that reads as follows:

      In addition to the report set forth in Section 3.4 above, Dell shall also
      submit [***] royalty reports to CommVault within [***] days after the end
      of each [***].

No other changes or modification are intended by this Addendum. All other terms
and conditions of the Agreement are in effect.

                                     Page 2
<PAGE>

IN WITNESS WHEREOF, the parties have executed this Addendum by their duly
authorized representatives as of the date first set forth above.

COMMVAULT SYSTEMS INC.                   DELL PRODUCTS L.P.

By:     /s/ David West                   By:     /s/ Joseph J. Kanicki
   -------------------------------          ----------------------------------
Name:   David West                       Name:   Joseph J. Kanicki
     -----------------------------            --------------------------------
Title:  VP Business Development          Title:  Senior Manager
      ----------------------------             -------------------------------
Date:   4-28-2005                        Date:   4-28-05
     -----------------------------            --------------------------------

                                     Page 3
<PAGE>

                                    EXHIBIT B
                               PRICING SUPPLEMENT
                        TO THE SOFTWARE LICENSE AGREEMENT
                           BETWEEN DELL PRODUCTS L.P.
                           AND COMMVAULT SYSTEMS INC.

<TABLE>
<CAPTION>
                                                                                          1 YR.
                                                                SW           DELL SW      UPDATE        TOTAL
DELL SKU     SKU DESCRIPTION           [***]     [***]         MSRP           COST      PROTECTION       COGS
--------     ---------------           -----     -----        ------        --------    ----------      ------
<S>          <C>                       <C>       <C>          <C>           <C>         <C>             <C>
SKU 1        [***]                     [***]     [***]        $  [***]        [***]        [***]         [***]
SKU 2        [***]                     [***]     [***]        $  [***]        [***]        [***]         [***]
SKU 3        [***]                     [***]     [***]        $  [***]        [***]        [***]         [***]
SKU 4        [***]                     [***]     [***]        $  [***]        [***]        [***]         [***]
SKU 5        [***]                     [***]     [***]        $  [***]        [***]        [***]         [***]
SKU 6        [***]                     [***]     [***]        $  [***]        [***]        [***]         [***]
SKU 7        [***]                     [***]     [***]        $  [***]        [***]        [***]         [***]
SKU 8        [***]                     [***]     [***]        $  [***]        [***]        [***]         [***]
SKU 9        [***]                     [***]     [***]        $  [***]        [***]        [***]         [***]
SKU 10       [***]                     [***]     [***]        $  [***]        [***]        [***]         [***]
SKU 11       [***]                     [***]     [***]        $  [***]        [***]        [***]         [***]
SKU 12       [***]                     [***]     [***]        $  [***]        [***]        [***]         [***]
SKU 13       [***]                     [***]     [***]        $  [***]        [***]        [***]         [***]
             [***]
SKU 14       [***]                     [***]     [***]        $  [***]        [***]        [***]         [***]
             [***]
SKU 15       [***]                                            $  [***]        [***]        [***]         [***]
SKU 16       [***]                                            $  [***]        [***]        [***]         [***]
</TABLE>

                                     Page 4
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.22
<SEQUENCE>11
<FILENAME>y17249a2exv10w22.txt
<DESCRIPTION>EX-10.22: ADDENDUM FIVE TO THE LICENSE AND DISTRIBUTION AGREEMENT
<TEXT>
<PAGE>

[***] INDICATES THAT TEXT HAS BEEN OMITTED WHICH IS THE SUBJECT OF A
CONFIDENTIAL TREATMENT REQUEST. THIS TEXT HAS BEEN FILED SEPARATELY WITH THE
SEC.

                                                                   EXHIBIT 10.22

                                  ADDENDUM FIVE
                                     TO THE
                       LICENSE AND DISTRIBUTION AGREEMENT
                                     BETWEEN
                               DELL PRODUCTS L.P.
                                       AND
                             COMMVAULT SYSTEMS, INC.

This Addendum ("Addendum") to the Software License Agreement dated December 17,
2003 (the "Agreement"), is entered into by and between Dell Products L.P.
(hereinafter "Dell") with its principal place of business at One Dell Way, Round
Rock, Texas 78682, and CommVault Systems, Inc., (hereinafter "CommVault") a
Delaware corporation having a principal place of business at 2 Crescent Place,
Oceanport, New Jersey 07757 (hereinafter "Licensor") and is effective as of the
23rd day of May, 2006 (the "Effective Date")

                                    RECITALS

WHEREAS, CommVault and Dell entered into the Agreement through which COMMVAULT
granted Dell various rights to distribute certain CommVault software products;

WHEREAS, CommVault and Dell wish to amend the Agreement and replace all Pricing
Supplements previously agreed to and attached to the Agreements, including the
initial Pricing Supplement, and as Addendum #1 dated April 26, 2004, Addendum #2
dated October 30, 2004, Addendum #3 dated May 1, 2005, and Addendum #4 dated
November 15, 2005.

NOW THEREFORE, in consideration of the mutual covenants and promises set forth
herein and for other good and valuable consideration, the receipt of which both
parties hereby acknowledge, Dell and CommVault agree as follows:

Any capitalized terms defined in this Addendum are specific to this Addendum
only, and do not modify or change the meaning set forth in the Agreement. Unless
expressly defined in this Addendum, the capitalized terms in this Addendum are
as defined in the Agreement. The Agreement shall remain in full force and effect
except as supplemented and amended herein.

      1.    Any and all Pricing Supplements to the Agreement are hereby replaced
            in its entirety with the attached Exhibit B to this Addendum.

      2.    [***].

      3.    Due in part to the [***] efforts undertaken by CommVault, the
            provisions of Section 13.5 of the Agreement shall no longer apply,
            and Section 13.5 shall hereinafter be deleted in its entirety for
            the sole purpose of this Addendum. This paragraph 3 does not amend
            the Agreement for subsequent addenda.

No other changes or modification are intended by this Addendum. All other terms
and conditions of the Agreement are in effect.

IN WITNESS WHEREOF, the parties have executed this Addendum by their duly
authorized representatives as of the date first set forth above.

COMMVAULT SYSTEMS INC.                                  DELL PRODUCTS L. P.

By: /s/ David R. West                        By: /s/ Joseph Kanicki
   ---------------------------------------   ----------------------------------

Name: David R. West                          Name: Joseph Kanicki
      ------------------------------------         ----------------------------

Confidential                             Page 1

<PAGE>

Title: VP Marketing & Business Development   Title: Senior Manager, Dell, Inc.
      ------------------------------------          ---------------------------

Date: 5/22/06                                Date: 6/6/2006
      ------------------------------------         ----------------------------

Confidential                             Page 2

<PAGE>

                                    EXHIBIT B
                               PRICING SUPPLEMENT
                        TO THE SOFTWARE LICENSE AGREEMENT
                           BETWEEN DELL PRODUCTS L.P.
                           AND COMMVAULT SYSTEMS INC.
<TABLE>
<CAPTION>
                                  FULL GALAXY

                                           1yr update
DELL                                    protection includes   Enhanced
SKU    SKU DESCRIPTION   Dell SW Cost     L2/L3 Support        Support   Total COGS
-----  ---------------   ------------   -------------------   --------   ----------
<S>    <C>               <C>            <C>                   <C>        <C>
SKU1      [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU2      [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU3      [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU4      [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU5      [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU6      [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU7      [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU8      [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU9      [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU10     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU11     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU12     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU13     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU14     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU15     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU16     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU17     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU18     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU19     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU20     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU21     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU22     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU23     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU24     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU25     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU26     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU27     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU28     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU29     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU30     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU31     [***]            $ [***]          $ [***]           $ [***]     $ [***]
SKU32     [***]            $ [***]            [***]             [***]     $ [***]
SKU33     [***]            $ [***]            [***]             [***]     $ [***]
SKU34     [***]            $ [***]            [***]             [***]     $ [***]
SKU35     [***]            $ [***]            [***]             [***]     $ [***]
</TABLE>

Confidential                             Page 3

<PAGE>

<TABLE>
<CAPTION>
                                 GALAXY EXPRESS

                                           1yr update
                                           protection
DELL                                      includes L2/L3
SKU    SKU DESCRIPTION   Dell SW Cost         Support         Enhanced   Total COGS
-----  ---------------   ------------   -------------------   --------   ----------
<S>    <C>               <C>            <C>                   <C>        <C>
SKU36    [***]             $ [***]            $ [***]          $ [***]    $ [***]
SKU37    [***]             $ [***]            $ [***]          $ [***]    $ [***]
SKU38    [***]             $ [***]            $ [***]          $ [***]    $ [***]
SKU39    [***]             $ [***]            $ [***]          $ [***]    $ [***]
SKU40    [***]             $ [***]            $ [***]          $ [***]    $ [***]
SKU41    [***]             $ [***]            $ [***]          $ [***]    $ [***]
</TABLE>

Confidential                             Page 4

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.23
<SEQUENCE>12
<FILENAME>y17249a2exv10w23.txt
<DESCRIPTION>EX-10.23: COMMVAULT SYSTEMS RESELLER AGREEMENT
<TEXT>
<PAGE>

[***] INDICATES THAT TEXT HAS BEEN OMITTED WHICH IS THE SUBJECT OF A
CONFIDENTIAL TREATMENT REQUEST. THIS TEXT HAS BEEN FILED SEPARATELY WITH THE
SEC.

                                                                   EXHIBIT 10.23

                      COMMVAULT SYSTEMS RESELLER AGREEMENT

This Reseller Agreement is made as of the effective Date set forth below,
between CommVault Systems, 2 Crescent Place, Oceanport, New Jersey 07757
("CommVault") and Dell Inc, ("Reseller").

This agreement is entered into April 6, 2005.

WHEREAS, CommVault is engaged in the business of providing data storage
products.

WHEREAS, Reseller is a provider of information management solutions who wishes
to purchase software products from CommVault for the purposes of resale with
other products or services to customer in accordance with valid purchase orders.

THEREFORE, the parties agree as follows:

      1.    Price: Reseller receives a [***] discount on the MSRP of the SW.
            Reseller shall provide CommVault with an applicable tax exemption
            certificate. Reseller has the unrestricted right to determine the
            prices at which it resells any Product to its customers. No
            CommVault representative has the authority to suggest that Reseller
            charge a particular resale price for any product.

      2.    Purchase Orders: Reseller shall place purchase orders for software
            identified in exhibit 1 with CommVault through the Dell 3GFX order
            process. CommVault will accept or reject orders directly through the
            3GFX system.

      3.    Payment: CommVault will electronically invoice Reseller through the
            3DFX process and payment for Products, including any authorized
            partial shipments, shall be due in [***] from the date that Dell
            receives the invoice.

      4.    Rebate: CommVault will rebate the Reseller on select orders in the
            amount of [***] of the net S&P Software (SW licensing only). [***].

      5.    Timeframe: This agreement will be in force from Feb 1, 2005 through
            July 31, 2005. This agreement will be re-evaluated after each Dell
            Fiscal quarter and any changes will be made in writing and agreed to
            by both Dell and CommVault.

      6.    Territory: United States only.

This agreement is intended to supersede any previous reseller agreements between
Dell and CommVault.

                                                                          Page 1

<PAGE>

(Continued from Page 1, CommVault Systems Reseller Agreement)

By signing below, the Reseller acknowledges that it has read, understands, and
agrees, to be bound by all terms and conditions of this Reseller Agreement,
including Exhibit 1 (together the "Agreement").

Dell, Inc.    ("Reseller")        CommVault Systems

/s/ Sean Cooper                   /s/ David R. West
--------------------------        -----------------------
Signature                         Signature

Sean Cooper                       David R. West
--------------------------        -----------------------
Name                              Name

Global Procurement                VP Business Development
--------------------------        -----------------------
Title                             Title

4/25/05                           4/19/05
--------------------------        -----------------------
Date                              Date

                                                                         Page 2

<PAGE>

                                    Exhibit 1
<TABLE>
<CAPTION>
                          MSRP/List
DELL SKU   DESCRIPTION      Price
--------   -----------    ---------
<S>        <C>            <C>
A0381892     [***]         [***]
A0131062     [***]         [***]
A0119474     [***]         [***]
A0119473     [***]         [***]
A0119472     [***]         [***]
A0146647     [***]         [***]
A0146646     [***]         [***]
A0143088     [***]         [***]
A0423903     [***]         [***]
A0422896     [***]         [***]
A0422908     [***]         [***]
A0422913     [***]         [***]
A0422916     [***]         [***]
A0429591     [***]         [***]
A0429592     [***]         [***]

A0131061     [***]         [***]
A0119471     [***]         [***]
A0119470     [***]         [***]
A0119469     [***]         [***]
A0223647     [***]         [***]
A0223649     [***]         [***]
A0223651     [***]         [***]
A0223645     [***]         [***]
A0131067     [***]         [***]
A0119468     [***]         [***]
A0119467     [***]         [***]
A0119466     [***]         [***]
A0131060     [***]         [***]
A0119607     [***]         [***]
A0119606     [***]         [***]
A0119605     [***]         [***]
A0131059     [***]         [***]
A0119604     [***]         [***]
A0119603     [***]         [***]
A0119602     [***]         [***]
A0119600     [***]         [***]
A0119598     [***]         [***]
A0119596     [***]         [***]
</TABLE>

                                                                          Page 3

<PAGE>

<TABLE>
<S>        <C>            <C>
A0131031     [***]         [***]

A0131057     [***]         [***]
A0119588     [***]         [***]
A0119587     [***]         [***]
A0119586     [***]         [***]
A0225276     [***]         [***]
A0225277     [***]         [***]
A0225278     [***]         [***]
A0225279     [***]         [***]
A0131056     [***]         [***]
A0119585     [***]         [***]
A0119584     [***]         [***]
A0119583     [***]         [***]
A0131055     [***]         [***]
A0119582     [***]         [***]
A0119581     [***]         [***]
A0119579     [***]         [***]
A0131091     [***]         [***]
A0119577     [***]         [***]
A0119568     [***]         [***]
A0119567     [***]         [***]
A0168288     [***]         [***]
A0119566     [***]         [***]
A0119565     [***]         [***]
A0119564     [***]         [***]
A0131065     [***]         [***]
A0119563     [***]         [***]
A0119562     [***]         [***]
A0119561     [***]         [***]

A0131100     [***]         [***]
A0131098     [***]         [***]
A0131096     [***]         [***]
A0131094     [***]         [***]
A0376336     [***]         [***]
A0223658     [***]         [***]
A0223660     [***]         [***]
A0389492     [***]         [***]
A0223662     [***]         [***]
A0223664     [***]         [***]
A0223666     [***]         [***]
A0423753     [***]         [***]
</TABLE>

                                                                          Page 4

<PAGE>

<TABLE>
<S>        <C>            <C>
A0423758     [***]         [***]
A0423766     [***]         [***]
A0423777     [***]         [***]
A0423779     [***]         [***]
A0423785     [***]         [***]

A0131064     [***]         [***]
A0119548     [***]         [***]
A0423915     [***]         [***]
A0131063     [***]         [***]
A0131085     [***]         [***]
A0131083     [***]         [***]
A0119543     [***]         [***]
A0131138     [***]         [***]
A0119539     [***]         [***]
A0131137     [***]         [***]
A0119527     [***]         [***]
A0131136     [***]         [***]
A0131135     [***]         [***]
A0119524     [***]         [***]
A0119523     [***]         [***]
A0131134     [***]         [***]
A0119519     [***]         [***]
A0152301     [***]         [***]
A0389497     [***]         [***]
A0389499     [***]         [***]
A0196063     [***]         [***]
A0196068     [***]         [***]
A0196072     [***]         [***]
A0196075     [***]         [***]

A0131133     [***]         [***]
A0119517     [***]         [***]
A0119514     [***]         [***]
A0119513     [***]         [***]
A0131132     [***]         [***]
A0119512     [***]         [***]
A0119511     [***]         [***]
A0119510     [***]         [***]
A0274379     [***]         [***]
A0274380     [***]         [***]
A0274381     [***]         [***]
A0274382     [***]         [***]
</TABLE>

                                                                          Page 5

<PAGE>

<TABLE>
<S>        <C>            <C>
A0131130     [***]         [***]
A0119509     [***]         [***]
A0119508     [***]         [***]
A0119507     [***]         [***]
A0433293     [***]         [***]
A0433286     [***]         [***]
A0433287     [***]         [***]
A0433288     [***]         [***]
A0131129     [***]         [***]
A0119506     [***]         [***]
A0119505     [***]         [***]
A0119504     [***]         [***]
A0131128     [***]         [***]
A0119503     [***]         [***]
A0119502     [***]         [***]
A0119483     [***]         [***]
A0164838     [***]         [***]
A0164840     [***]         [***]
A0164843     [***]         [***]
A0164846     [***]         [***]
A0131127     [***]         [***]
A0119482     [***]         [***]
A0119481     [***]         [***]
A0119480     [***]         [***]
A0132100     [***]         [***]
A0229777     [***]         [***]

A0131125     [***]         [***]
A0119479     [***]         [***]
A0119478     [***]         [***]
A0119477     [***]         [***]
A0131124     [***]         [***]
A0119476     [***]         [***]
A0119475     [***]         [***]
A0119491     [***]         [***]

A0379894     [***]         [***]
A0360825     [***]         [***]
A0219312     [***]         [***]
A0219313     [***]         [***]
A0219315     [***]         [***]
A0233016     [***]         [***]
A0233027     [***]         [***]
</TABLE>

                                                                          Page 6

<PAGE>

<TABLE>
<S>        <C>            <C>
A0285833     [***]         [***]
A0285836     [***]         [***]
A0223244     [***]         [***]
A0223246     [***]         [***]
A0223248     [***]         [***]
A0223250     [***]         [***]
A0233823     [***]         [***]
A0168302     [***]         [***]
A0168303     [***]         [***]
A0168304     [***]         [***]
A0159672     [***]         [***]
A0159674     [***]         [***]
A0159676     [***]         [***]
A0347354     [***]         [***]
A0347404     [***]         [***]
A0347408     [***]         [***]
A0347415     [***]         [***]
A0227427     [***]         [***]
A0228533     [***]         [***]
A0227428     [***]         [***]
A0227429     [***]         [***]
A0131037     [***]         [***]
A0227433     [***]         [***]
A0227434     [***]         [***]
A0145629     [***]         [***]
A0229785     [***]         [***]
A0132655     [***]         [***]
A0229790     [***]         [***]
A0229791     [***]         [***]
A0229798     [***]         [***]
A0229800     [***]         [***]
A0229802     [***]         [***]
A0229804     [***]         [***]
A0143088     [***]         [***]
A0148854     [***]         [***]
A0148860     [***]         [***]
A0289610     [***]         [***]
A0289612     [***]         [***]
A0289614     [***]         [***]
A0244848     [***]         [***]
A0244976     [***]         [***]

A0243384     [***]         [***]
A0118273     [***]         [***]
A0118275     [***]         [***]
</TABLE>

                                                                          Page 7

<PAGE>

<TABLE>
<S>        <C>            <C>
A0118281     [***]         [***]
A0118295     [***]         [***]
A0118297     [***]         [***]
A0118298     [***]         [***]
A0290530     [***]         [***]
A0290531     [***]         [***]
A0290532     [***]         [***]
A0290533     [***]         [***]

A0118284     [***]         [***]
A0118285     [***]         [***]
A0118289     [***]         [***]
A0118291     [***]         [***]

A0243376     [***]         [***]
A0243377     [***]         [***]
A0243378     [***]         [***]
A0243379     [***]         [***]

A0243373     [***]         [***]
A0243374     [***]         [***]
A0243375     [***]         [***]
A0243359     [***]         [***]
A0243360     [***]         [***]

A0352266     [***]         [***]
A0352263     [***]         [***]
A0352264     [***]         [***]
A0352265     [***]         [***]
A0243056     [***]         [***]
A0243071     [***]         [***]
A0132297     [***]         [***]
A0131608     [***]         [***]
A0132299     [***]         [***]
A0131610     [***]         [***]
A0132298     [***]         [***]
A0131609     [***]         [***]
</TABLE>

                                                                          Page 8

<PAGE>

<TABLE>
<S>        <C>            <C>
A0131434
A0131432     [***]         [***]
A0219317     [***]         [***]
A0219319     [***]         [***]
A0219321     [***]         [***]
A0219323     [***]         [***]
A0219325     [***]         [***]
A0219327     [***]         [***]
A0173058     [***]         [***]
A0173059     [***]         [***]
A0173060     [***]         [***]
A0173061     [***]         [***]
A0131438     [***]         [***]
</TABLE>

                                                                          Page 9
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.24
<SEQUENCE>13
<FILENAME>y17249a2exv10w24.txt
<DESCRIPTION>EX-10.24: LETTER AGREEMENT
<TEXT>
<PAGE>

                                                                   EXHIBIT 10.24

February 8, 2002

Ladies and Gentlemen:

This letter sets forth our agreement relating to certain aspects of the
conversion of the Series A Preferred Stock, $.01 par value per share, the Series
B Preferred Stock, $.01 par value per share, the Series C Preferred Stock, $.01
par value per share, the Series D Preferred Stock, $.01 par value per share, the
Series E Preferred Stock, $.01 par value per share (collectively, the "Series A
through E Preferred Stock') of CommVault Systems, Inc. (the "Company").

At the election of the Company, upon the closing of the Initial Public Offering
(as such term is defined in the Certificate (defined below)), the Series A
through E Preferred Stock shall be automatically converted into Common Stock in
accordance with the terms of Section IV(B)(3)(d) of the Company's Amended and
Restated Certificate of Incorporation dated the date hereof (the "Certificate"),
subject to the provisions of this letter set forth below. In lieu of paying all
or any portion of the cash payment upon conversion of shares of the Series A
through E Preferred Stock on or prior to the Initial Public Offering (as such
term is defined in the Certificate) as provided in Section IV(B)(3)(d) of the
Company's Certificate, the Company may, in its sole discretion, issue a
promissory note (the "Note"), in form and substance reasonably satisfactory to
the holders of the A through E Preferred Stock, subject to the limitations set
forth in the remainder of this paragraph. The principal amount of any Note shall
be equal to any cash amounts which the Company is otherwise obligated to pay
pursuant to Section IV(B)(3)(d) of the Company's Certificate, but which it
elects not to pay in accordance with the preceding sentence. With respect solely
to the portion of the principal amount of the Note arising from the payment of
the $14.85 for each share of Series A through E Preferred Stock pursuant to
Section IV(B)(3)(d) of the Company's Certificate, the Note shall bear interest
from its date of issuance at the rate of 12% per year payable [quarterly] in
arrears. The maturity of any such Note shall be at least twelve months from its
date of issuance. At any time prior to maturity of the Note, the Company may
prepay, without penalty, all or any portion of the principal and interest on the
Note at its election.

You agree that you will not transfer ownership of any of your shares of Series A
through E Preferred Stock unless the transferee of such shares expressly agrees
in writing to be bound by the terms of this letter agreement.

If this is consistent with your understanding of our agreement, please sign
below where indicated.

                                        Sincerely,


                                        /s/ N. Robert Hammer
                                        ----------------------------------------
                                        N. Robert Hammer
                                        Chief Executive Officer
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.25
<SEQUENCE>14
<FILENAME>y17249a2exv10w25.txt
<DESCRIPTION>EX-10.25: STOCKHOLDERS AGREEMENT
<TEXT>
<PAGE>

                                                                   EXHIBIT 10.25

                             STOCKHOLDERS AGREEMENT

                                   dated as of

                                  May 22, 1996

                                      among

                      DLJ MERCHANT BANKING PARTNERS, L.P.,

                        DLJ INTERNATIONAL PARTNERS, C.V.,

                          DLJ OFFSHORE PARTNERS, C.V.,

                       DLJ MERCHANT BANKING FUNDING, INC.,

                             DLJ CAPITAL CORPORATION

                             SPROUT GROWTH II, L.P.,

                            SPROUT CAPITAL VII, L.P.,

                              SPROUT CEO FUND L.P.

                                DAVID H. IRELAND

                                 SCOTTY R. NEAL

                              ROBERT FREIBURGHOUSE

                                       and

                             COMMVAULT SYSTEMS, INC.

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
                                    ARTICLE 1
                                   DEFINITIONS

1.1  Definitions.........................................................     1

                                    ARTICLE 2
                            RESTRICTIONS ON TRANSFER

2.1  General.............................................................     6
2.2  Legend on Stock.....................................................     7
2.3  Permitted Transferees...............................................     8

                                    ARTICLE 3
          RIGHTS OF FIRST REFUSAL; TAG ALONG RIGHTS; PREEMPTIVE RIGHTS;
                         DRAG ALONG RIGHTS; TERMINATION

3.1  Right of First Refusal; Tag Along Rights............................     8
3.2  Preemptive Rights...................................................    11
3.3  Right to Compel Participation in Certain Transfers..................    11
3.4  Improper Transfer...................................................    12
3.5  Termination of Agreement............................................    13

                                    ARTICLE 4
                               REGISTRATION RIGHTS

4.1  Demand Registration.................................................    13
4.2  Incidental Registration.............................................    14
4.3  Holdback Agreements.................................................    16
4.4  Registration Procedures.............................................    16
4.5  Indemnification by the Issuer.......................................    18
4.6  Indemnification by Participating Stockholders.......................    19
4.7  Conduct of Indemnification Proceedings..............................    19
4.8  Contribution........................................................    20
4.9  Participation in Public Offering....................................    21

                                    ARTICLE 5
                        CERTAIN COVENANTS AND AGREEMENTS

5.1  Confidentiality.....................................................    21
5.2  New Stockholders....................................................    22

                                    ARTICLE 6
                                  MISCELLANEOUS

6.1  Entire Agreement....................................................    22
6.2  Binding Effect; Benefit.............................................    22
</TABLE>


                                        i

<PAGE>

<TABLE>
<S>                                                                         <C>
6.3  Assignability.......................................................    23
6.4  Amendment; Waiver; Termination......................................    23
6.5  Exclusive Financial Advisor and Investment Banking Advisor..........    23
6.6  Notices.............................................................    23
6.7  Headings............................................................    24
6.8  Counterparts........................................................    24
6.9  Applicable Law......................................................    25
6.10 Specific Enforcement................................................    25
6.11 Consent to Jurisdiction.............................................    25
</TABLE>


                                       ii
<PAGE>

                             STOCKHOLDERS AGREEMENT

     STOCKHOLDERS AGREEMENT (this "AGREEMENT") dated as of May 22, 1996 among
DLJ Merchant Banking Partners, L.P., DLJ International Partners, C.V., DLJ
Offshore Partners, C.V., DLJ Merchant Banking Funding, Inc., DLJ Capital
Corporation, Sprout Growth II, L.P., Sprout Capital VII, L.P., Sprout CEO Fund
L.P. (each of the foregoing, a "DLJ ENTITY," and collectively, the "DLJ
ENTITIES"), David H. Ireland ("IRELAND"), Scotty R. Neal ("NEAL"), Robert
Freiburghouse ("FREIBURGHOUSE") and CommVault Systems. Inc. (the "ISSUER,"
formerly CV Systems, Inc.).

                                   WITNESSETH:

     WHEREAS, pursuant to the Asset Purchase Agreement dated as of May 22, 1996
(the "ASSET PURCHASE AGREEMENT") between the Issuer and Lucent Technologies
Inc., certain of the parties hereto, concurrently with the execution of this
Agreement, are acquiring stock of the Issuer; and

     WHEREAS, the parties hereto desire to enter into this Agreement to govern
certain of their rights, duties and obligations after consummation of the
transactions contemplated by the Asset Purchase Agreement;

     The parties hereto agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     1.1 Definitions. (a) The following terms, as used herein, have the
following meanings:

     "ADVERSE PERSON" means any person that is an actual competitor or
reasonably potential competitor of the Issuer or whose interest is otherwise
materially adverse to the Issuer.

     "AFFILIATE" means, with respect to any Person, any other Person directly or
indirectly controlling, controlled by, or under common control with such Person,
provided that no stockholder of the Issuer shall be deemed an Affiliate of any
other stockholder solely by reason of any investment in the Issuer. For the
purpose of this definition, the term "CONTROL" (including with correlative
meanings, the terms "CONTROLLING," "CONTROLLED BY" and "UNDER COMMON CONTROL
WITH"), as used with respect to any Person, shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, whether through the ownership of voting stock or by
contract or otherwise.

     "AFFILIATED EMPLOYEE BENEFIT TRUST" means any trust that is a successor to
the assets held by a trust established under an employee benefit plan subject to
ERISA or any other trust established directly or indirectly under such plan or
any other such plan having the same sponsor.

<PAGE>

     "ALLOWABLE TRANSFER AMOUNT" shall mean, as to each member of Management, at
any time in any given calendar year, that number of shares of Fully Diluted
Common Stock equal to (i) (a) the aggregate Initial Ownership Position of the
DLJ Entities, minus (b) the aggregate number of Shares of Fully Diluted Common
Stock owned by the DLJ Entities at such time, divided by (ii) the aggregate
Initial Ownership Position of the DLJ Entities, multiplied by (iii) the number
of shares of Fully Diluted Common Stock owned by such individual at such time.

     "BENCHMARK SHARES" means shares of Fully Diluted Common Stock sold or
proposed to be sold by the DLJ Entities (other than to their Permitted
Transferees) subsequent to the Closing Date until the aggregate number of shares
of Fully Diluted Common Stock so sold or proposed to be sold by the DLJ Entities
(other than as aforesaid) equals 70% of the aggregate Initial Ownership Position
of the DLJ Entities (taking into account any stock dividend, stock split or
reverse stock split on or subsequent to the Closing Date).

     "BOARD" means the board of directors of the Issuer.

     "BUSINESS DAY" means any day except a Saturday, Sunday or other day on
which commercial banks in New York City are authorized by law to close.

     "COMMON STOCK" means the Common Stock, par value $.01 per share, of the
Issuer.

     "EMPLOYMENT AGREEMENTS" means the Employment Agreements between the Issuer
and each of Neal and Ireland dated the date hereof.

     "EQUITY STOCK" means Common Stock, stock convertible into or exchangeable
for Common Stock and options, warrants or other rights to acquire Common Stock.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

     "EXCHANGE ACT" means the Stock Exchange Act of 1934, as amended.

     "FULLY DILUTED" means, with respect to Common Stock and without
duplication, all outstanding shares and all shares issuable in respect of stock
convertible into or exchangeable for Common Stock, stock appreciation rights or
options, warrants and other irrevocable rights to purchase or subscribe for
Common Stock or stock convertible into or exchangeable for Common Stock and any
Person shall be deemed to own such number of Fully Diluted shares of Common
Stock as such Person beneficially owns or has the right to acquire from any
other Person (including the Issuer).

     "INITIAL OWNERSHIP POSITION" means (i) the number of Fully Diluted shares
of Common Stock held by the DLJ Entities on the date hereof, plus (ii) the
number of Fully Diluted shares of Common Stock acquired by the DLJ Entities
subsequent to the date hereof.

     "INITIAL PUBLIC OFFERING" means the initial sale after the date hereof of
Common Stock pursuant to an effective registration statement under the
Securities Act (other than a registration statement on Form S-8 or any successor
form).


                                        2

<PAGE>

     "MANAGEMENT" means Neal, Ireland, Freiburghouse (and any other Person
deemed by the Board of Directors to be a key executive) and their Permitted
Transferees.

     "OTHER STOCKHOLDERS" means all Stockholders other than any DLJ Entity, and
their respective Permitted Transferees.

     "OPTION AGREEMENTS" means the agreements between the Issuer and each holder
of options to acquire Common Stock of the Issuer.

     "PERCENTAGE OWNERSHIP" means, with respect to any Stockholder or any group
of Stockholders at any time, (i) the number of shares of Fully Diluted Common
Stock that such Stockholder or group of Stockholders owns at such time, divided
by (ii) the total number of shares of Fully Diluted Common Stock at such time.

     "Permitted Transferee" means:

          (i) in the case of any DLJ Entity, (A) any other DLJ Entity, (B) any
     general or limited partner of any such entity (a "DLJ PARTNER"), and any
     corporation, partnership, Affiliated Employee Benefit Trust or other entity
     which is an Affiliate of any DLJ Partner (collectively, the "DLJ
     AFFILIATES"), (C) any managing director, general partner, director, limited
     partner, officer or employee of such DLJ Entity or a DLJ Affiliate, or the
     heirs, executors, administrators, testamentary trustees, legatees or
     beneficiaries of any of the foregoing Persons referred to in this clause
     (C) (collectively, "DLJ ASSOCIATES"), (D) any trust, the beneficiaries of
     which, or any corporation, limited liability company or partnership, the
     stockholders, members or general or limited partners of which, include only
     such DLJ Entity, DLJ Affiliates, DLJ Associates, their spouses or their
     lineal descendants and (E) a voting trustee for one or more DLJ Entities,
     DLJ Affiliates or DLJ Associates under the terms of a voting trust designed
     to conform with the requirements of the Insurance Law of the State of New
     York; and

          (ii) in the case of any Other Stockholder, (A) the Issuer, (B) (x)
     such Stockholder's spouse or (y) such Stockholder's siblings or lineal
     descendants, so long as such Stockholder retains the right to vote such
     Stock, (C) a Person who acquires Stock from any such Stockholder pursuant
     to a will or the laws of descent and distribution, (D) any trust the
     beneficiaries of which consist only of such Stockholders and/or such
     Stockholder's spouse, siblings and lineal descendants, and (E) any DLJ
     Entity.

     "PERSON" means an individual, corporation, partnership, association, trust
or other entity or organization, including a government or political subdivision
or an agency or instrumentality thereof.

     "PIGGYBACK STOCKHOLDER" means: (a) if the DLJ Entities collectively hold
greater than or equal to 30% of the Initial Ownership Position, the DLJ
Entities, and (b) if the DLJ Entities collectively hold less than 30% of the
Initial Ownership Position, the DLJ Entities and the Other Stockholders.


                                        3

<PAGE>

     "PREFERRED STOCK" means the Series A Preferred Stock, par value $.01 per
share, of the Issuer.

     "REGISTRABLE STOCK" means any shares of Common Stock until (i) a
registration statement covering such shares of Common Stock has been declared
effective by the SEC and such shares have been disposed of pursuant to such
effective registration statement, (ii) such shares are sold under circumstances
in which all of the applicable conditions of Rule 144 (or any similar provisions
then in force) under the Securities Act are met or such shares may be sold
pursuant to Rule 144(k) or (iii) such shares are otherwise transferred, the
Issuer has delivered a new certificate or other evidence of ownership for such
shares not bearing the legend required pursuant to this Agreement and such
shares may be resold without subsequent registration under the Securities Act.

     "REGISTRATION EXPENSES" means (i) all registration and filing fees, (ii)
fees and expenses of compliance with stock or blue sky laws (including
reasonable fees and disbursements of counsel in connection with blue sky
qualifications of the Stock), (iii) printing expenses, (iv) internal expenses of
the Issuer (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), (v) reasonable
fees and disbursements of counsel for the Issuer and customary fees and expenses
for independent certified public accountants retained by the Issuer (including
expenses relating to any comfort letters or costs associated with the delivery
by independent certified public accountants of a comfort letter or comfort
letters requested pursuant to Section 4.4(h) hereof), (vi) the reasonable fees
and expenses of any special experts retained by the Issuer in connection with
such registration, (vii) reasonable fees and expenses of one counsel for the
Stockholders participating in the offering, selected by the DLJ Entities, in the
case of an offering in which any of the DLJ Entities participate, or selected by
Management in any other case involving exercise of registration rights under
Sections 4.1 or 4.2, (viii) fees and expenses in connection with any review of
underwriting arrangements by the National Association of Stock Dealers, Inc.
(the "NASD") including fees and expenses of any "QUALIFIED INDEPENDENT
UNDERWRITER" and (ix) fees and disbursements of underwriters customarily paid by
issuers or sellers of stock, but shall not include any underwriting fees,
discounts or commissions attributable to the sale of Registrable Stock, or any
out-of-pocket expenses (except as set forth in clause (vii) above) of the
Stockholders or any fees and expenses of underwriter's counsel.

     "SEC" means the Securities and Exchange Commission.

     "SECURITIES ACT" means the Securities Act of 1933, as amended.

     "STOCK" means shares of Common Stock, Preferred Stock and other voting
stock of the Issuer held by the stockholders.

     "STOCKHOLDER" means each Person (other than the Issuer) who shall be a
party to this Agreement, whether in connection with the execution and delivery
hereof as of the date hereof, pursuant to Section 6.3 or otherwise, so long as
such Person shall "BENEFICIALLY OWN" (as such term is defined in Rule 13d-3
under the Exchange Act) any Stock.


                                       4

<PAGE>

     "SUBSIDIARY" means, with respect to any Person, any entity of which stock
or other ownership interests having ordinary voting power to elect a majority of
the board of directors or other persons performing similar functions are at the
time directly or indirectly owned by such Person.

     "THIRD PARTY" means a prospective purchaser of shares in an arm's-length
transaction from a Stockholder where such purchaser is not a Permitted
Transferee of such Stockholder.

     "TRANSACTION DOCUMENTS" means this Agreement, the Employment Agreements and
the Option Agreements.

     "UNDERWRITTEN PUBLIC OFFERING" means an underwritten public offering of
Registrable Stock of the Issuer pursuant to an effective registration statement
under the Securities Act.

     (b) The term "DLJ ENTITIES," to the extent such entities shall have
transferred any of their Stock to "Permitted Transferees," shall mean the DLJ
Entities and the Permitted Transferees of the DLJ Entities, taken together, and
any right or action that may be taken at the election of the DLJ Entities may be
taken at the election of the DLJ Entities, and such Permitted Transferees.

     (c) The term "OTHER STOCKHOLDERS," to the extent such stockholders shall
have transferred any of their Stock to "Permitted Transferees," shall mean the
Other Stockholders and the Permitted Transferees of the Other Stockholders, as
the case may be, and any right or action that may be taken at the election of
the Other Stockholders may be taken at the election of the Other Stockholders
and the Permitted Transferees of the Other Stockholders, as the case may be.

     (d) Each of the following terms is defined in the Section set forth
opposite such term:

<TABLE>
<CAPTION>
Term                                Section
----                                -------
<S>                               <C>
Aggregate Tag Amount              3.1(g)(i)
Confidential Information          5.1(b)
control                           1.1(a)
Demand Registration               4.1(a)
DLJ Affiliate                     1.1(a)
DLJ Associates                    1.1(a)
DLJ Entity                        1.1(b)
DLJ Partner                       1.1(a)
DLJSC                             6.5
Holders                           4.1(a)(ii)
Incidental Registration           4.2(a)
Indemnified Party                 4.7
Indemnifying Party                4.7
Inspectors                        4.4(g)
Maximum Offering Size             4.1(d)
NASD                              1.1(a)
Other Stockholder                 1.1(c)
Private Transaction               2.1(b)
</TABLE>


                                       5

<PAGE>

<TABLE>
<S>                               <C>
Records                           4.4(g)
Representatives                   5.1(b)
Restriction Termination Date      2.1(a)
Section 2.1(c) Termination Date   2.1(c)
Section 3.1 Offer                 3.1(a)
Section 3.1 Offer Notice          3.1(a)
Section 3.1 Offer Price           3.1(a)
Section 3.2 Notice                3.2
Section 3.3 Agreement             3.3(a)
Section 3.3 Notice                3.3(a)
Section 3.3 Notice Period         3.3(a)
Section 3.3 Sale                  3.3(a)
Section 3.3 Sale Price            3.3(a)
Selling Party                     3.1(a)
Selling Stockholder               4.1(a)
Tag Along Notice Period           3.1(g)(i)
Tag Along Right                   3.1(g)(i)
Tag Along Sale                    3.1(g)(i)
Tag Along Seller                  3.1(g)(i)
Tagging Person                    3.1(g)(i)
transfer                          2.1(a)
</TABLE>

     (e) Capitalized terms used herein and not otherwise defined herein shall
have the meanings herein that are assigned to such terms in the Asset Purchase
Agreement.

                                   ARTICLE 2
                            RESTRICTIONS ON TRANSFER

     2.1 General. (a) Until the earlier of (i) the fifth anniversary of the date
of this Agreement and (ii) the second anniversary of the consummation of an
Initial Public Offering (the earlier of such dates, the "RESTRICTION TERMINATION
DATE"), no Stockholder may, directly or indirectly, sell, assign, transfer,
grant a participation in, pledge or otherwise dispose of ("TRANSFER") any Stock
(or solicit any offers to buy or otherwise acquire, or to take a pledge of, any
of its Stock) except transfers permitted by Section 2.3.

     (b) From and after the Restriction Termination Date, no Stockholder may
transfer any Stock (or solicit any offers to buy or otherwise acquire, or to
take a pledge of, any Stock) except for, subject to Section 2.1(c): (i)
transfers permitted by Section 2.3, (ii) transfers in a bona fide Underwritten
Public Offering upon exercise of registration rights pursuant to Article 4,
(iii) transfers pursuant to Rule 144 (or any successor provisions under the
Securities Act), (iv) in the case of any DLJ Entity and subject to Section 3.1,
transfers to any other Person in any Private Transaction (as defined below),
provided that no Stock may be transferred pursuant to this clause (iv) to any
Person unless such Person shall have agreed in writing to be bound by the terms
of this Agreement applicable to such Stockholder, (v) in the case of any
Management, subject to Section 3.1, transfers of shares of Stock and to any
other Person in any Private Transaction, provided that no Stock may be
transferred to any Person pursuant to this clause (v) unless such


                                       6

<PAGE>

Person shall have agreed in writing to be bound by the terms of this Agreement
applicable to such Stockholder and (vi) in the case of any Other Stockholders,
transfers pursuant to Section 3.3 hereby. As used herein, "PRIVATE TRANSACTION"
means any transfer not covered by clause (i), (ii), (iii) or (vi) above.

     (c) Notwithstanding anything else contained herein, except pursuant to
Section 2.3 or 3.3, no transfer of any shares of Common Stock may be made by a
member of Management at any time to the extent that the number of shares then
sought to be transferred by such member of Management, as the case may be, would
exceed the Allowable Transfer Amount applicable to such individual at such time.
From and after the Section 2.1(c) Termination Date (as defined below), (x) the
restriction contained in the preceding sentence shall terminate as to transfers
pursuant to Section 2.1(b)(ii) and 2.1(b)(iii), and (y) transfers of shares of
Common Stock may be made by Management pursuant to Section 2.1(b)(ii) or
2.1(b)(iii) without regard to the Allowable Transfer Amount but only to the
extent such transfers are otherwise in accordance with the provisions of
Articles 2 and 3. Such time as the aggregate number of shares of Fully Diluted
Common Stock held by the DLJ Entities is less than 10% of the aggregate number
of shares of Fully Diluted Common Stock held by the DLJ Entities on the date
hereof (determined taking into account any adjustments in accordance with the
terms of the applicable stock) is referred to as the "SECTION 2.1(C) TERMINATION
DATE."

     (d) No Stockholder may transfer any Stock at any time except in compliance
with applicable federal or state securities laws.

     (e) Notwithstanding anything else contained herein, prior to making any
transfer of Stock, a Stockholder shall give at least 30 days notice to the
Board. The Board shall have the right to prevent the transfer of any Stock to
any person that the Board determines, in its sole discretion, is an Adverse
Person. The Board shall be required to notify such Stockholder within 30 days
after receipt of a notice of transfer from such Stockholder that a proposed
transferee is an Adverse Person.

     2.2 Legend on Stock. (a) In addition to any other legend that may be
required, each certificate for Stock that is issued to any Stockholder shall
bear a legend in substantially the following form:

               "THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
          OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND MAY NOT BE
          OFFERED OR SOLD EXCEPT IN COMPLIANCE THEREWITH. THIS SECURITY IS ALSO
          SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER AS SET FORTH IN THE
          STOCKHOLDERS AGREEMENT DATED AS OF MAY 22, 1996, COPIES OF WHICH MAY
          BE OBTAINED UPON REQUEST FROM COMMVAULT SYSTEMS, INC. AND ANY
          SUCCESSOR THERETO."

     (b) If any shares of Stock shall cease to be Registrable Stock, the Issuer
shall, upon the written request of the holder thereof, issue to such holder a
new certificate evidencing such


                                       7

<PAGE>

shares without the first sentence of the legend required by Section 2.2(a)
endorsed thereon. If any Stock cease to be subject to any and all restrictions
on transfer set forth in this Agreement, the Issuer shall, upon the written
request of the holder thereof, issue to such holder a new certificate evidencing
such Stock without the second sentence of the legend required by Section 2.2(a)
endorsed thereon.

     2.3 Permitted Transferees. Notwithstanding anything in this Agreement to
the contrary, any Stockholder may at any time transfer any or all of its Stock
to one or more of its Permitted Transferees without the consent of the Board or
any other Stockholder or group of Stockholders and without compliance with
Section 3.1 so long as (a) such Permitted Transferee shall have agreed in
writing to be bound by the terms of this Agreement, (b) the transfer to such
Permitted Transferee is not in violation of applicable federal or state
securities laws and (c) such Permitted Transferee is not an Adverse Party.

                                    ARTICLE 3
          RIGHTS OF FIRST REFUSAL; TAG ALONG RIGHTS; PREEMPTIVE RIGHTS;
                         DRAG ALONG RIGHTS; TERMINATION

     3.1 Right of First Refusal; Tag Along Rights. (a) Subject to the provisions
of Section 3.1(g), if any Other Stockholder receives from or otherwise
negotiates with a Third Party in a Private Transaction an offer to purchase for
cash (or, subject to clause (f) non-cash consideration) any or all of the Stock
owned or held by such Other Stockholder that is otherwise permitted under this
Agreement (including, without limitation, Section 3.1 hereof) (a "SECTION 3.1
OFFER") and such Other Stockholder (a "SELLING PARTY") intends to pursue such
sale of such Stock to such Third Party in such Private Transaction, such Selling
Party shall provide the Issuer and each DLJ Entity written notice of such
Section 3.1 Offer (a "SECTION 3.1 OFFER NOTICE"). The Section 3.1 Offer Notice
shall identify the number and type of Stock subject to the Section 3.1 Offer,
the cash price at which a sale is proposed to be made (the "SECTION 3.1 OFFER
PRICE") and all other material terms and conditions of the Section 3.1 Offer.

     (b) Subject to the provisions of Section 3.1(g), the receipt of a Section
3.1 Offer Notice by the Issuer and each DLJ Entity from any Selling Party shall
constitute an offer by such Selling Party to sell, to the Issuer and each DLJ
Entity, for cash (or, subject to clause (f), non-cash consideration) in whole
and not in part, with the Issuer having priority with respect to the acceptance
of the Section 3.1 Offer. If the Issuer does not accept the offer, in whole and
not in part, in accordance herewith, then such offer may be accepted, in whole
and not in part, at the Section 3.1 Offer Price by the DLJ Entities on a pro
rata basis based on each DLJ Entity's Percentage Ownership (unless the DLJ
Entities shall agree to another allocation resulting in acceptance of the
Section 3.1 Offer with respect to all Stock subject to the Section 3.1 Offer);
provided that in the event there is an undersubscription by the DLJ Entities at
the end of the 30-day period referred to below, the unsubscribed Stock shall be
apportioned among those DLJ Entities whose written notice of acceptance referred
to below specified a number of additional shares such DLJ Entity would like to
purchase pursuant to this Section 3.1, which apportionment shall be on a pro
rata basis among such DLJ Entities in accordance with such DLJ Entity's
Percentage Ownership. Such offer shall be irrevocable for 30 days after receipt
of such Section 3.1 Offer Notice by the Issuer and each DLJ Entity (and, if not
accepted in accordance with the


                                       8

<PAGE>

terms hereof, shall expire at the completion of such 30-day period). During such
30-day period, subject to the Issuer's priority right of exercise as set forth
above, each DLJ Entity shall have the right to accept such offer (as provided
above). The Section 3.1 Offer may be accepted by giving a written irrevocable
notice of acceptance to such Selling Party prior to the expiration of such
30-day period.

     (c) The Issuer or the DLJ Entity(ies), as the case may be, shall purchase
for cash (or, subject to clause (f), non-cash consideration) at the Section 3.1
Offer Price and pay for all Stock set forth in the Section 3.1 Offer Notice
within a 20-day period following acceptance of the Section 3.1 Offer; provided
that if the purchase and sale of such Stock is subject to expiration of any
applicable statutory waiting period, the time period during which such purchase
and sale may be consummated shall be extended until the expiration of five
Business Days after such waiting period shall have expired; provided further
that such time period shall not exceed 60 days without the written consent of
the Selling Party.

     (d) Upon the rejection or expiration of the Section 3.1 Offer by the Issuer
and the DLJ Entities or the failure to obtain any required consent for the
purchase of the Stock subject thereto within 60 days, there shall commence a
90-day period during which the Selling Party shall have the right, subject to
Section 3.1(g), to consummate the sale to the Third Party making the Section 3.1
Offer of all but not less than all of the Stock subject to the Section 3.1 Offer
at a price not less than the Section 3.1 Offer Price; provided that (i) such
Third Party shall have agreed in writing to be bound by the terms of this
Agreement and (ii) the transfer to such Third Party is not in violation of
applicable federal or state or foreign securities laws. Notwithstanding the
foregoing, if the purchase and sale of such Stock is subject to any prior
regulatory approval, the time period during which such purchase and sale may be
consummated shall be extended until the expiration of five Business Days after
all such approvals shall have been received but in no event shall such time
period exceed 120 days without the consent of the Issuer. If such Selling Party
does not consummate the sale of any Stock subject to the Section 3.1 Offer in
accordance with the time limitations set forth above, such Selling Party may not
sell any Stock without repeating the foregoing procedures.

     (e) Notwithstanding anything in this Agreement to the contrary, the
provisions of this Section 3.1 will not be applicable to transfers made pursuant
to and in compliance with Section 2.3, Section 3.3 or Article 4.

     (f) A Stockholder may transfer Stock in accordance with the foregoing
provisions of this Section 3.1 for consideration other than cash only if such
Other Stockholder has first obtained and delivered to each DLJ Entity and the
Issuer an opinion of an investment banking firm of national standing indicating
that the fair market value of the non-cash consideration that such Stockholder
proposes to accept as consideration for such Stock, together with any cash
consideration, is at least equal to the Section 3.1 Offer Price.

     (g) (i) In the event of any proposed transfer by one or more DLJ Entities
(each a "TAG ALONG SELLER") of a total of 25% or more of the aggregate Initial
Ownership Position of the DLJ Entities in a Private Transaction permitted by
Section 2.1(b)(iv) (a "TAG ALONG SALE"), the Other Stockholders may, at their
option, elect to exercise their rights under this Section 3.1(g). Such electing
Other Stockholders (each of such Other Stockholders, a "TAGGING PERSON") shall


                                       9

<PAGE>

have the right (a "TAG ALONG RIGHT"), exercisable by written notice given to the
Tag Along Seller within 45 days after receipt of the Section 3.1 Offer Notice
(the "TAG ALONG NOTICE PERIOD"), to request the Tag Along Seller to include in
the proposed transfer to the Third Party the number of shares of Common Stock or
Stock convertible into shares of Common Stock held by such Tagging Person as is
specified in such notice; provided that (x) the Tag Along Seller shall be
required only to include in the proposed transfer a number (the "AGGREGATE TAG
AMOUNT") of shares of Common Stock or Stock convertible into Common Stock held
by such Tagging Persons equal to not more than the number of shares of Common
Stock proposed to be sold by the Tag Along Seller to such Third Party in such
transaction multiplied by a fraction, the numerator of which is the number of
shares of Fully Diluted Common Stock owned by all such Tagging Persons
immediately prior to the Tag Along Sale, and the denominator of which is the
total number of shares of Fully Diluted Common Stock immediately prior to the
Tag Along Sale and (y) if the aggregate number of shares of Common Stock
proposed to be sold (and in fact sold) by all Tagging Persons in such
transaction exceeds the Aggregate Tag Amount, the Aggregate Tag Amount of shares
permitted to be sold shall be allocated among all Tagging Persons pro rata based
on Percentage Ownership. If the Other Stockholders exercise their Tag Along
Right hereunder, each Tagging Person shall deliver to the Tag Along Seller the
certificate or certificates representing the Stock of such Tagging Person to be
included in the transfer, together with a limited power-of-attorney authorizing
the Tag Along Seller to transfer such Stock on the terms set forth in the
Section 3.1 Offer Notice. Delivery of such certificate or certificates
representing the Stock to be transferred and the limited power-of-attorney
authorizing the Tag Along Seller to transfer such Stock shall constitute an
irrevocable acceptance of the Tag Along Sale, subject to the terms of this
Section 3.1(g), by such Tagging Persons and the Tag Along Seller. If, at the end
of a 120-day period after such delivery, the Tag Along Seller has not completed
the transfer of all such Stock, the Tag Along Seller shall return to each
Tagging Person the limited power-of-attorney (and all copies thereof) together
with all certificates representing the Stock which such Tagging Person delivered
for transfer but not sold pursuant to this Section 3.1(g), and the DLJ Entities
may not effect another Tag Along Sale without repeating the foregoing
procedures.

     (ii) The per share consideration to be paid to the Tagging Persons in any
Tag Along Sale shall be: (i) in the case of Common Stock proposed to be sold by
the Tag Along Seller, the consideration per share of Common Stock for which the
transfer by the Tag Along Seller is proposed to be made; or (ii) in the case of
Stock that is convertible into Common Stock proposed to be sold by the Tag Along
Seller, the consideration set forth in clause (i), multiplied by the number of
shares into which such Stock is convertible, plus the amount of cash to be
received by the holders of such Stock upon conversion thereof.

     (iii) Concurrently with the consummation of the Tag Along Sale, the Tag
Along Seller shall notify the Tagging Persons thereof, shall remit to the
Tagging Persons the total consideration for the Stock of the Tagging Persons
transferred pursuant thereto (computed pursuant to Section 3.1(g)(ii)), and
shall, promptly after the consummation of such Tag Along Sale furnish such other
evidence of the completion and time of completion of such transfer and the terms
thereof as may be reasonably requested by the Tagging Persons.

     (iv) If at the termination of the Tag Along Notice Period any Tagging
Person shall not have elected to participate in the Tag Along Sale, such Tagging
Person will be deemed to have


                                       10

<PAGE>

waived its rights under this Section 3.1(g) with respect to the transfer of its
Stock pursuant to such Tag Along Sale.

     (v) In any Tag Along Sale in which any of the Other Stockholders have
exercised their Tag Along Right, the right of any party pursuant to Section
3.1(b) to accept the offer referred to therein shall be deemed to have
terminated. If the Other Stockholders elect not to exercise their Tag Along
Right in any Tag Along Sale and elect to accept the offer referred to in Section
3.1(b), no other Person may exercise any Tag Along Right under this Section
3.1(g).

     3.2 Preemptive Rights. For so long as any shares of Preferred Stock remain
outstanding, the Issuer shall provide each DLJ Entity with a written notice (a
"SECTION 3.2 NOTICE") of any proposed issuance by the Issuer of Equity Stock at
least 60 days prior to the proposed issuance date. Such notice shall specify the
price at which the Equity Stock is to be issued and the other material terms of
the issuance. Each DLJ Entity shall be entitled to purchase, at the price and on
the terms specified in such Section 3.2 Notice, the Equity Stock proposed to be
issued on a pro rata basis based upon such DLJ Entity's Percentage Ownership. A
DLJ Entity may exercise its rights under this Section 3.2 by delivering written
notice of its election to purchase Equity Stock to the Issuer within 30 days of
receipt of the Section 3.2 Notice. Each DLJ Entity shall deliver a copy of any
such written notice to the Issuer at least five Business Days prior to the
expiration of such 30-day period. A delivery of such a written notice (which
notice shall specify the number of shares (or amount) of Equity Stock to be
purchased by the DLJ Entity submitting such notice) by a DLJ Entity shall
constitute a binding agreement of such DLJ Entity to purchase, at the price and
on the terms specified in the Section 3.2 Notice, the number of shares (or
amount) of Equity Stock specified in such DLJ Entity's written notice. In the
case of any issuance of Equity Stock, the Issuer shall have 90 days from the
date of the Section 3.2 Notice to consummate the proposed issuance of any or all
of such Equity Stock which the DLJ Entities have not elected to purchase at the
price and upon terms that are not materially less favorable to the Issuer than
those specified in the Section 3.2 Notice. At the consummation of such issuance,
the Issuer shall issue certificates representing the Equity Stock to be
purchased by each DLJ Entity exercising preemptive rights pursuant to this
Section 3.2 registered in the name of such DLJ Entity, against payment by such
DLJ Entity of the purchase price for such Equity Stock. If the Issuer proposes
to issue Equity Stock after such 90-day period, it shall again comply with the
procedures set forth in this Section. Notwithstanding the foregoing, no DLJ
Entity shall be entitled to purchase Equity Stock as contemplated by this
Section 3.2 in connection with issuances of Equity Stock (i) to employees of the
Issuer or any Subsidiary of the Issuer pursuant to employee benefit plans or
arrangements approved by the Board (including upon the exercise of employee
stock options), (ii) in connection with any bona fide, arm's-length direct or
indirect merger, acquisition or similar transaction, or (iii) upon the
conversion of any shares of Preferred Stock into Common Stock. The Issuer shall
not be under any obligation to consummate any proposed issuance of Equity Stock,
regardless of whether it shall have delivered a Section 3.2 Notice in respect of
such proposed issuance. Unless earlier terminated pursuant to the terms of this
Section 3.2, the provisions of this Section 3.2 shall terminate upon the
consummation of an Initial Public Offering.

     3.3 Right to Compel Participation in Certain Transfers. (a) If the DLJ
Entities should propose to transfer more than 25% of the aggregate Initial
Ownership Position of the DLJ Entities to any Third Party (a "SECTION 3.3
SALE"), the DLJ Entities may, at their option, require


                                       11

<PAGE>

all but not less than all the Other Stockholders to participate in such
transfer. The DLJ Entities shall provide written notice of such Section 3.3 Sale
to the Other Stockholders (a "SECTION 3.3 NOTICE") and a copy of the agreement
pursuant to which such shares are proposed to be transferred (the "SECTION 3.3
AGREEMENT"). The Section 3.3 Notice shall identify the transferee, the number of
shares of Common Stock subject to the Section 3.3 Sale, the consideration per
share of Common Stock for which a transfer is proposed to be made (the "SECTION
3.3 SALE PRICE") and all other material terms and conditions of the Section 3.3
Sale. Each Other Stockholder shall be required to participate in the Section 3.3
Sale on the terms and conditions set forth in the Section 3.3 Notice and to
tender all its shares of Common Stock, and Stock convertible into Common Stock
as set forth below. The price of such transfer shall be the Section 3.3 Sale
Price in the case of shares of Common Stock, and in the case of Stock
convertible into Common Stock shall be the Section 3.3 Sale Price multiplied by
the number of shares of Common Stock into which such Stock is convertible, plus
the amount of cash to be received by the holder(s) of such Stock upon conversion
thereof. Within ten Business Days following the date of the Section 3.3 Notice
(the "SECTION 3.3 NOTICE PERIOD"), each of the Other Stockholders shall deliver
to a representative of the DLJ Entities designated in the Section 3.3 Notice
certificates representing all shares of Common Stock held by such Other
Stockholder and all Stock convertible into Common Stock held by such Other
Shareholder, duly endorsed, together with all other documents required to be
executed in connection with such Section 3.3 Sale or, if such delivery is not
permitted by applicable law, an unconditional agreement to deliver such stock
pursuant to this Section 3.3(a) at the closing for such Section 3.3 Sale against
delivery to such other Stockholder of the consideration therefor. If an Other
Stockholder should fail to deliver such certificates to the DLJ Entities, the
Issuer shall cause the books and records of the Issuer to show that such Stock
are bound by the provisions of this Section 3.3(a) and that such Stock shall he
transferred to the Third Party immediately upon surrender for transfer by the
Other Stockholder thereof.

     (b) If, within 120 days after the DLJ Entities give the Section 3.3 Notice,
they have not completed the transfer of all the stock subject to the Section 3.3
Sale, the DLJ Entities shall return to each of the Other Stockholders all
certificates representing Stock that such Other Stockholder delivered for
transfer pursuant hereto, together with any documents in the possession of the
DLJ Entities executed by the Other Stockholder in connection with such proposed
transfer, and all the restrictions on transfer contained in this Agreement or
otherwise applicable at such time with respect to Stock owned by the Other
Stockholders shall again be in effect.

     (c) Promptly after the consummation of the transfer of Stock of the DLJ
Entities and the Other Stockholders pursuant to this Section 3.3, the DLJ
Entities shall give notice thereof to the Other Stockholders, shall remit to
each of the Other Stockholders who have surrendered their certificates the total
consideration for the shares of Common Stock and Stock convertible into Common
Stock transferred pursuant hereto and shall furnish such other evidence of the
completion and time of completion of such transfer and the terms thereof as may
be reasonably requested by such Other Stockholders.

     3.4 Improper Transfer. Any attempt to transfer any Stock not in compliance
with this Agreement shall be null and void and neither the Issuer nor any
transfer agent shall give any effect in the Issuer's records to such attempted
transfer.


                                       12
<PAGE>

     3.5 Termination of Agreement. This Agreement shall terminate upon the
earliest of:

          (i) the tenth anniversary of the date hereof; and

          (ii) such time as the DLJ Entities own less than 5% of the aggregate
     number of shares of Fully Diluted Common Stock.

                                    ARTICLE 4
                               REGISTRATION RIGHTS

     4.1 Demand Registration. (a) The DLJ Entities may at any time make a
written request (such requesting DLJ Entity, a "SELLING STOCKHOLDER") that the
Issuer effect the registration under the Securities Act of all or a portion of
such Selling Stockholder's Registrable Stock, and specifying the intended method
of disposition thereof. The Issuer will promptly give written notice of such
requested registration (a "DEMAND REGISTRATION") at least 30 days prior to the
anticipated filing date of the registration statement relating to such Demand
Registration to the Other Stockholders and thereupon will use its best efforts
to effect, as expeditiously as possible, the registration under the Securities
Act of:

          (i) the Registrable Stock then held by the Selling Stockholders which
     the Issuer has been so requested to register by the Selling Stockholders;
     and

          (ii) subject to Section 4.2, all other Registrable Stock which any
     Other Stockholder entitled to request the Issuer to effect an Incidental
     Registration (as such term is defined in Section 4.2) pursuant to Section
     4.2 (all such Stockholders, together with the Selling Stockholders, the
     "HOLDERS") has requested the Issuer to register by written request received
     by the Issuer within 15 days after the receipt by such Holders of such
     written notice given by the Issuer,

all to the extent necessary to permit the disposition (in accordance with the
intended methods thereof as aforesaid) of the Registrable Stock so to be
registered; provided that, subject to Section 4.1(c) hereof, the Issuer shall
not be obligated to effect more than three Demand Registrations for the DLJ
Entities collectively pursuant to this Section 4.1 other than any such Demand
Registrations effected on Form S-3; and provided further that the Issuer shall
not be obligated to effect a Demand Registration unless the Registrable Stock
requested to be included in such Demand Registration constitutes at least 25% of
the Common Stock then outstanding or to be issued upon conversion of the
Preferred Stock. In no event will the Issuer be required to effect more than two
Demand Registrations on Form S-3 within any 12 month period.

     Promptly after the expiration of the 15-day period referred to in Section
4.1(a)(ii) hereof, the Issuer will notify all of the Holders to be included in
the Demand Registration of the other Holders and the number of shares of
Registrable Stock requested to be included therein. The Selling Stockholders
requesting a registration under this Section 4.1(a) may, at any time prior to
the effective date of the registration statement relating to such registration,
revoke such request, without liability to any of the other Holders, by providing
a written notice to the Issuer revoking such request, in which case such
request, so revoked, shall be considered a Demand Registration unless such
revocation arose out of the fault of the Issuer, in which case such request
shall not be


                                       13

<PAGE>

considered a Demand Registration. Notwithstanding anything contained in this,
Agreement to the contrary, nothing herein shall be construed as requiring the
Issuer to register any of its stock other than Common Stock.

     (b) The Issuer will pay all Registration Expenses in connection with any
Demand Registration.

     (c) A registration requested pursuant to this Section 4.1 shall not be
deemed to have been effected unless the registration statement relating thereto
(i) has become effective under the Securities Act and (ii) has remained
effective for a period of at least 90 days (or such shorter period in which all
Registrable Stock of the Holders included in such registration has actually been
sold thereunder); provided that if after any registration statement requested
pursuant to this Section 4.1 becomes effective (i) such registration statement
is interfered with by any stop order, injunction or other order or requirement
of the SEC or other governmental agency or court and (ii) less than 75% of the
Registrable Stock included in such registration statement has been sold
thereunder, such registration statement shall be at the sole expense of the
Issuer and shall not be considered a Demand Registration, unless any such
interference referred to in clause (i) of this proviso arose out of the fault of
the Selling Stockholders, in which case such registration statement shall be
considered a Demand Registration.

     (d) If a Demand Registration involves an Underwritten Public Offering and
the managing underwriter shall advise the Issuer and the Selling Stockholders
that, in its view, (i) the number of shares of Common Stock requested to be
included in such registration (including Common Stock which the Issuer proposes
to be included which is not Registrable Stock) or (ii) the inclusion of some or
all of the Stock owned by the Holders, in either case, exceeds the largest
number of Stock which can be sold without having an adverse effect on such
offering, including the price at which such Stock can be sold (the "MAXIMUM
OFFERING SIZE"), the Issuer will include in such registration, in the priority
listed below, up to the Maximum Offering Size:

               (A) first, all Benchmark Shares requested to be registered by the
          DLJ Entities (allocated, if necessary for the offering not to exceed
          the Maximum Offering Size, pro rata among the DLJ Entities on the
          basis of the relative number of shares of Registrable Stock requested
          to he included in such registration);

               (B) second, any Common Stock proposed to be registered by the
          Issuer; and

               (C) third, all Registrable Stock requested to be registered by
          any Selling Stockholders and any other Holders (allocated, if
          necessary for the offering not to exceed the Maximum Offering size,
          pro rata among such Selling Stockholders and other Holders on the
          basis of the relative number of shares of Registrable Stock (excluding
          any Benchmark Shares) so requested to be included in such
          registration).

     4.2 Incidental Registration. (a) If the Issuer proposes to register any of
its Common Stock under the Securities Act (other than a registration (A) in
connection with an Initial Public Offering, (B) on Form S-8 or S-4 or any
successor or similar forms, (C) relating to Common


                                       14

<PAGE>

Stock issuable upon exercise of employee stock options or in connection with any
employee benefit or similar plan of the Issuer or (D) in connection with a
direct or indirect merger, acquisition or other similar transaction) whether or
not for sale for its own account, the Issuer will each such time, subject to the
provisions of Section 4.2(b) hereof, give prompt written notice at least 30 days
prior to the anticipated filing date of the registration statement relating to
such registration to each Piggyback Stockholder, which notice shall set forth
such Piggyback Stockholders' rights under this Section 4.2 and shall offer all
Piggyback Stockholders the opportunity to include in such registration statement
such number of shares of Registrable Stock as each such Piggyback Stockholder
may request (an "INCIDENTAL REGISTRATION"). Upon the written request of any such
Piggyback Stockholder made within 15 days after the receipt of notice from the
Issuer (which request shall specify the number of shares of Registrable Stock
intended to be disposed of by such Piggyback Stockholder), the Issuer will use
its best efforts to effect the registration under the Securities Act of all
Registrable Stock which the Issuer has been so requested to register by such
Piggyback Stockholders, to the extent requisite to permit the disposition of the
Registrable Stock so to be registered: provided that (i) if such registration
involves an Underwritten Public Offering, all such Piggyback Stockholders
requesting to be included in the Issuer's registration must sell their
Registrable Stock to the underwriters selected as provided in Section 4.4(f) on
the same terms and conditions as apply to the Issuer and the selling Piggyback
Stockholders and (ii) if, at any time after giving written notice of its
intention to register any stock pursuant to this Section 4.2(a) and prior to the
effective date of the registration statement filed in connection with such
registration, the Issuer shall determine for any reason not to register such
stock, the Issuer shall give written notice to all such Piggyback Stockholders
and, thereupon, shall be relieved of its obligation to register any Registrable
Stock in connection with such registration. No registration effected under this
Section 4.2 shall relieve the Issuer of its obligations to effect a Demand
Registration to the extent required by Section 4.1 hereof. The Issuer will pay
all Registration Expenses in connection with each registration of Registrable
Stock requested pursuant to this Section 4.2.

     (b) If a registration pursuant to this Section 4.2 involves an Underwritten
Public Offering (other than in the case of an Underwritten Public Offering
requested by any Stockholder in a Demand Registration, in which case the
provisions with respect to priority of inclusion in such offering set forth in
Section 4.1(d) shall apply) and the managing underwriter advises the Issuer
that, in its view, the number of shares of Common Stock which the Issuer and the
selling Piggyback Stockholders intend to include in such registration exceeds
the Maximum Offering Size, the Issuer will include in such registration, in the
following priority, up to the Maximum Offering Size:

          (i) first, so much of the Common Stock proposed to be registered by
     the Issuer as would not cause the offering to exceed the Maximum Offering
     Size;

          (ii) second, all Benchmark Shares requested to be included in such
     registration statement by any DLJ Entity pursuant to this Section 4.2
     (allocated, if necessary for the offering not to exceed the Maximum
     Offering Size, pro rata among such DLJ Entities on the basis of the
     relative number of shares of Registrable Stock requested to be so
     included); and


                                       15

<PAGE>

          (iii) third, all Registrable Stock other than Benchmark Shares
     requested to be included in such registration by any Piggyback Stockholder
     pursuant to Section 4.2 (allocated, if necessary for the offering not to
     exceed the Maximum Offering Size, pro rata among such Piggyback
     Stockholders on the basis of the relative number of shares of Registrable
     Stock (excluding any Benchmark Shares) so requested to be included in such
     registration).

     4.3 Holdback Agreements. If any registration of Registrable Stock shall be
in connection with an Underwritten Public Offering, each Stockholder agrees not
to effect any public sale or distribution, including any sale pursuant to Rule
144, or any successor provision, under the Securities Act, of any Registrable
Stock, and not to effect any such public sale or distribution of any other
Common Stock of the Issuer or of any stock convertible into or exchangeable or
exercisable for any Common Stock of the Issuer (in each case, other than as part
of such Underwritten Public Offering) during the 14 days prior to the effective
date of such registration statement (except as part of such registration) or
during the period after such effective date that such managing underwriter and
the Issuer shall agree (but not to exceed 90 days).

     4.4 Registration Procedures. Whenever Stockholders request that any
Registrable Stock be registered pursuant to Section 4.1 or 4.2 hereof, the
Issuer will, subject to the provisions of such sections, use its best efforts to
effect the registration and the sale of such Registrable Stock in accordance
with the intended method of disposition thereof as quickly as practicable, and
in connection with any such request:

     (a) The Issuer will as expeditiously as possible prepare and file with the
SEC a registration statement on any form for which the Issuer then qualifies or
which counsel for the Issuer shall deem appropriate and which form shall be
available for the sale of the Registrable Stock to be registered thereunder in
accordance with the intended method of distribution thereof, and use its best
efforts to cause such filed registration statement to become and remain
effective for a period of not less than 90 days (or such shorter period in which
all of the Registrable Stock of the Holders included in such registration
statement shall have actually been sold thereunder).

     (b) The Issuer will, if requested, prior to filing a registration statement
or prospectus or any amendment or supplement thereto, furnish to each
Stockholder and each underwriter, if any, of the Registrable Stock covered by
such registration statement copies of such registration statement as proposed to
be filed, and thereafter the Issuer will furnish to such Stockholder and
underwriter, if any, such number of copies of such registration statement, each
amendment and supplement thereto (in each case including all exhibits thereto
and documents incorporated by reference therein), the prospectus included in
such registration statement (including each preliminary prospectus) and such
other documents as such Stockholder or underwriter may reasonably request in
order to facilitate the disposition of the Registrable Stock owned by such
Stockholder.

     (c) After the filing of the registration statement, the Issuer will
promptly notify each Stockholder holding Registrable Stock covered by such
registration statement of any stop order issued or threatened by the SEC and
take all reasonable actions required to prevent the entry of such stop order or
to remove it if entered.


                                       16

<PAGE>

     (d) The Issuer will use its best efforts to (i) register or qualify the
Registrable Stock covered by such registration statement under such other stock
or blue sky laws of such jurisdictions in the United States as any Stockholder
holding such Registrable Stock reasonably (in light of such Stockholder's
intended plan of distribution) requests and (ii) cause such Registrable Stock to
be registered with or approved by such other governmental agencies or
authorities as may be necessary by virtue of the business and operations of the
Issuer and do any and all other acts and things that may be reasonably necessary
or advisable to enable such Stockholder to consummate the disposition of the
Registrable Stock owned by such Stockholder; provided that the Issuer will not
be required to (A) qualify generally to do business in any jurisdiction where it
would not otherwise be required to qualify but for this paragraph (d), (B)
subject itself to taxation in any such jurisdiction or (C) consent to general
service of process in any such jurisdiction.

     (e) The Issuer will immediately notify each Stockholder holding such
Registrable Stock covered by such registration statement, at any time when a
prospectus relating thereto is required to be delivered under the Securities
Act, of the occurrence of an event requiring the preparation of a supplement or
amendment to such prospectus so that, as thereafter delivered to the purchasers
of such Registrable Stock, such prospectus will not contain an untrue statement
of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading and promptly
prepare and make available to each such Stockholder and file with the SEC any
such supplement or amendment.

     (f) Subject to Section 6.5, the Issuer may select, in its sole discretion,
the underwriter or underwriters in connection with any Underwritten Public
Offering as it may deem appropriate. Notwithstanding the foregoing, the DLJ
Entities will have the right, in their sole discretion, to select the
underwriter or underwriters in connection with any underwritten Demand
Registration initiated by any of the DLJ Entities pursuant to Section 4.1. Any
Affiliate of any of the DLJ Entities may be selected as underwriter for an
Underwritten Public Offering. The Issuer will enter into customary agreements
(including an underwriting agreement in customary form) and take such other
actions as are reasonably required in order to expedite or facilitate the
disposition of such Registrable Stock, including the engagement of a "qualified
independent underwriter" in connection with the qualification of the
underwriting arrangements with the NASD.

     (g) The Issuer will make available for inspection by any Stockholder and
any underwriter participating in any disposition pursuant to a registration
statement being filed by the Issuer pursuant to this Section 4.4 and any
attorney, accountant or other professional retained by any such Stockholder or
underwriter (collectively, the "INSPECTORS"), all financial and other records,
pertinent corporate documents and properties of the Issuer (collectively, the
"RECORDS") as shall be reasonably requested by any such Person, and cause the
Issuer's officers, directors and employees to supply all information reasonably
requested by any Inspectors in connection with such registration statement.

     (h) The Issuer will furnish to each such Stockholder and to each such
underwriter, if any, a signed counterpart, addressed to such underwriter, of (i)
an opinion or opinions of counsel to the Issuer and (ii) a comfort letter or
comfort letters from the Issuer's independent public accountants, each in
customary form and covering such matters of the type customarily covered


                                       17

<PAGE>

by opinions or comfort letters, as the case may be, as a majority of such
Stockholders or the managing underwriter therefor reasonably requests.

     (i) The Issuer will otherwise use its best efforts to comply with all
applicable rules and regulations of the SEC, and make available to its
stockholders, as soon as reasonably practicable, an earnings statement covering
a period of 12 months, beginning within three months after the effective date of
the registration statement, which earnings statement shall satisfy the
provisions of section 11(a) of the Securities Act. The Issuer may require each
such Stockholder to promptly furnish in writing to the Issuer such information
regarding the distribution of the Registrable Stock as the Issuer may from time
to time reasonably request and such other information as may be legally required
in connection with such registration.

     Each such Stockholder agrees that, upon receipt of any notice from the
Issuer of the happening of any event of the kind described in Section 4.4(e)
hereof, such Stockholder will forthwith discontinue disposition of Registrable
Stock pursuant to the registration statement covering such Registrable Stock
until such Stockholder's receipt of the copies of the supplemented or amended
prospectus contemplated by Section 4.4(e) hereof, and, if so directed by the
Issuer, such Stockholder will deliver to the Issuer all copies, other than any
permanent file copies then in such Stockholder's possession, of the most recent
prospectus covering such Registrable Stock at the time of receipt of such
notice. In the event that the Issuer shall give such notice, the Issuer shall
extend the period during which such registration statement shall be maintained
effective (including the period referred to in Section 4.4(a) hereof) by the
number of days during the period from and including the date of the giving of
notice pursuant to Section 4.4(e) hereof to the date when the Issuer shall make
available to such Stockholder a prospectus supplemented or amended to conform
with the requirements of Section 4.4(e) hereof.

     4.5 Indemnification by the Issuer. The Issuer agrees to indemnify and hold
harmless each Stockholder holding Registrable Stock covered by a registration
statement, its officers, directors and agents, and each Person, if any, who
controls such Stockholder within the meaning of Section 15 of the Securities Act
or Section 20 of the Exchange Act from and against any and all losses, claims,
damages and liabilities caused by any untrue statement or alleged untrue
statement of a material fact contained in any registration statement or
prospectus relating to the Registrable Stock (as amended or supplemented if the
Issuer shall have furnished any amendments or supplements thereto) or any
preliminary prospectus, or caused by any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, except insofar as such losses, claims,
damages or liabilities are caused by any such untrue statement or omission or
alleged untrue statement or omission so made in strict conformity with
information furnished in writing to the Issuer by such Stockholder or on such
Stockholder's behalf expressly for use therein; provided that with respect to
any untrue statement or omission or alleged untrue statement or omission made in
any preliminary prospectus, or in any prospectus, as the case may be, the
indemnity agreement contained in this paragraph shall not apply to the extent
that any such loss, claim, damage, liability or expense results from the fact
that a current copy of the prospectus (or, in the case of a prospectus, the
prospectus as amended or supplemented) was not sent or given to the Person
asserting any such loss, claim, damage, liability or expense at or prior to the
written confirmation of the sale of the Registrable Stock concerned to such
Person if it is determined that the Issuer has provided such prospectus and it
was the responsibility of such Stockholder to provide such


                                       18

<PAGE>

Person with a current copy of the prospectus (or such amended or supplemented
prospectus, as the case may be) and such current copy of the prospectus (or such
amended or supplemented prospectus, as the case may be) would have cured the
defect giving rise to such loss, claim, damage, liability or expense. The Issuer
also agrees to indemnify any underwriters of the Registrable Stock, their
officers and directors and each person who controls such underwriters on
substantially the same basis as that of the indemnification of the Stockholders
provided in this Section 4.5.

     4.6 Indemnification by Participating Stockholders. (a) Subject to Section
4.6(b), each Stockholder holding Registrable Stock included in any registration
statement agrees, severally but not jointly, to indemnify and hold harmless the
Issuer, its officers, directors and agents and each Person, if any, who controls
the Issuer within the meaning of either Section 15 of the Securities Act or
Section 20 of the Exchange Act to the same extent as the foregoing indemnity
from the Issuer to such Stockholder, but only (i) with respect to any untrue
statement or omission or alleged untrue statement or omission made in strict
conformity with information furnished in writing by such Stockholder or on such
Stockholder's behalf expressly for use in any registration statement or
prospectus relating to the Registrable Stock, or any amendment or supplement
thereto, or any preliminary prospectus or (ii) to the extent that any loss,
claim, damage, liability or expense described in Section 4.5 results from the
fact that a current copy of the prospectus (or, in the case of a prospectus, the
prospectus as amended or supplemented) was not sent or given to the Person
asserting any such loss, claim, damage, liability or expense at or prior to the
written confirmation of the sale of the Registrable Stock concerned to such
Person if it is determined that it was the responsibility of such Stockholder to
provide such Person with a current copy of the prospectus (or such amended or
supplemented prospectus, as the case may be) and such current copy of the
prospectus (or such amended or supplemented prospectus, as the case may be)
would have cured the defect giving rise to such loss, claim, damage, liability
or expense. Subject to Section 4.6(b), each such Stockholder also agrees to
indemnify and hold harmless underwriters of the Registrable Stock, their
officers and directors and each person who controls such underwriters on
substantially the same basis as that of the indemnification of the Issuer
provided in this Section 4.6. As a condition to including Registrable Stock in
any registration statement filed in accordance with Article 4 hereof, the Issuer
may require that it shall have received an undertaking reasonably satisfactory
to it from any underwriter to indemnify and hold it harmless to the extent
customarily provided by underwriters with respect to similar stock.

     (b) No Stockholder shall be liable under Section 4.6(a) for any damage
thereunder in excess of the net proceeds realized by such Stockholder in the
sale of the Registrable Stock of such Stockholder.

     4.7 Conduct of Indemnification Proceedings. In case any proceeding
(including any governmental investigation) shall be instituted involving any
Person in respect of which indemnity may be sought pursuant to this Article 4,
such Person (an "INDEMNIFIED PARTY") shall promptly notify the Person against
whom such indemnity may be sought (the "INDEMNIFYING PARTY") in writing and the
Indemnifying Party shall assume the defense thereof, including the employment of
counsel reasonably satisfactory to such Indemnified Party, and shall assume the
payment of all fees and expenses; provided that the failure of any Indemnified
Party so to notify the Indemnifying Party shall not relieve the Indemnifying
Party of its obligations hereunder


                                       19

<PAGE>

except to the extent that the Indemnifying Party is materially prejudiced by
such failure to notify. In any such proceeding, any Indemnified Party shall have
the right to retain its own counsel, but the fees and expenses of such counsel
shall be at the expense of such Indemnified Party unless (i) the Indemnifying
Party and the Indemnified Party shall have mutually agreed to the retention of
such counsel or (ii) in the reasonable judgment of such Indemnified Party
representation of both parties by the same counsel would be inappropriate due to
actual or potential differing interests between them. It is understood that the
Indemnifying Party shall not, in connection with any proceeding or related
proceedings in the same jurisdiction, be liable for the reasonable fees and
expenses of more than one separate firm of attorneys (in addition to any local
counsel) at any time for all such Indemnified Parties, and that all such fees
and expenses shall be reimbursed as they are incurred. In the case of any such
separate firm for the Indemnified Parties, such firm shall be designated in
writing by the Indemnified Parties. The Indemnifying Party shall not be liable
for any settlement of any proceeding effected without its written consent, but
if settled with such consent, or if there be a final judgment for the plaintiff,
the Indemnifying Party shall indemnify and hold harmless such Indemnified
Parties from and against any and all losses, claims, damages, liabilities and
expenses or liability (to the extent stated above) by reason of such settlement
or judgment. No Indemnifying Party shall, without the prior written consent of
the Indemnified Party, effect any settlement of any pending or threatened
proceeding in respect of which any Indemnified Party is or could have been a
party and indemnity could have been sought hereunder by such Indemnified Party,
unless such settlement includes an unconditional release of such Indemnified
Party from all liability arising out of such proceeding.

     4.8 Contribution. If the indemnification provided for in this Article 4 is
held by a court of competent jurisdiction to be unavailable to the Indemnified
Parties in respect of any losses, claims, damages or liabilities referred to
herein, then each such Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such losses, claims, damages or liabilities (i)
as between the Issuer and the Stockholders holding Registrable Stock covered by
a registration statement on the one hand and the underwriters on the other, in
such proportion as is appropriate to reflect the relative benefits received by
the Issuer and such Stockholders on the one hand and the underwriters on the
other, from the offering of the Registrable Stock, or if such allocation is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits but also the relative fault of the Issuer and such
Stockholders on the one hand and of such underwriters on the other in connection
with the statements or omissions which resulted in such losses, claims, damages
or liabilities, as well as any other relevant equitable considerations and (ii)
as between the Issuer on the one hand and each such Stockholder on the other, in
such proportion as is appropriate to reflect the relative fault of the Issuer
and of each such Stockholder in connection with such statements or omissions, as
well as any other relevant equitable considerations. The relative benefits
received by the Issuer and such Stockholders on the one hand and such
underwriters on the other shall be deemed to be in the same proportion as the
total proceeds from the offering (net of underwriting discounts and commissions
but before deducting expenses) received by the Issuer and such Stockholders bear
to the total underwriting discounts and commissions received by such
underwriters, in each case as set forth in the table on the cover page of the
prospectus. The relative fault of the Issuer and such Stockholders on the one
hand and of such underwriters on the other shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to
information supplied by the Issuer and such


                                       20

<PAGE>

Stockholders or by such underwriters. The relative fault of the Issuer on the
one hand and of each such Stockholder on the other shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by such party, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

     The Issuer and the Stockholders agree that it would not be just and
equitable if contribution pursuant to this Section 4.8 were determined by pro
rata allocation (even if the underwriters were treated as one entity for such
purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in the immediately preceding paragraph. The
amount paid or payable by an Indemnified Party as a result of the losses,
claims, damages or liabilities referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such Indemnified Party
in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 4.8, no underwriter shall be
required to contribute any amount in excess of the amount by which the total
price at which the Registrable Stock underwritten by it and distributed to the
public were offered to the public exceeds the amount of any damages which such
underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission, and no Stockholder
shall be required to contribute any amount in excess of the amount by which the
net proceeds realized on the sale of the Registrable Stock of such Stockholder
exceeds the amount of any damages which such Stockholder has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. Each Stockholder's obligation to contribute pursuant to this
Section 4.8 is several in the proportion that the proceeds of the offering
received by such Stockholder bears to the total proceeds of the offering
received by all such Stockholders and not joint.

     4.9 Participation in Public Offering. No Person may participate in any
Underwritten Public Offering hereunder unless such Person (a) agrees to sell
such Person's stock on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b)
completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents reasonably required under the terms
of such underwriting arrangements and the provisions of this Agreement in
respect of registration rights.

                                    ARTICLE 5
                        CERTAIN COVENANTS AND AGREEMENTS

     5.1 Confidentiality. (a) Each Stockholder hereby agrees that Confidential
Information (as defined below) furnished and to be furnished to it was and will
be made available in connection with such Stockholder's investment in the
Issuer. Each Stockholder agrees that it will not use the Confidential
Information in any way to the competitive disadvantage of the Issuer. Each
Stockholder further acknowledges and agrees that it will not


                                       21

<PAGE>

disclose any Confidential Information to any Person; provided that Confidential
Information may be disclosed (i) to such Stockholder's Representatives (as
defined below) in the normal course of the performance of their duties, (ii) to
the extent required by applicable law, rule or regulation (including complying
with any oral or written questions, interrogatories, requests for information or
documents, subpoena, civil investigative demand or similar process to which a
Stockholder is subject), (iii) to any Person to whom such Stockholder is
contemplating a transfer of its Stock (provided that such transfer would not be
in violation of the provisions of this Agreement and as long as such potential
transferee is advised of the confidential nature of such information and agrees
to be bound by a confidentiality agreement in form and substance satisfactory to
the Issuer and consistent with the provisions hereof) or (iv) if the prior
written consent of the Board shall have been obtained. Nothing contained herein
shall prevent the use of Confidential Information in connection with the
assertion or defense of any claim by or against the Issuer or any Stockholder.

     (b) "CONFIDENTIAL INFORMATION" means any information concerning the Issuer,
its financial condition, business, operations or prospects in the possession of
or to be furnished to any Stockholder in its capacity as a shareholder of the
Issuer or by virtue of its present or former right to designate a director of
the Issuer; provided, that the term "Confidential Information" does not include
information which (i) becomes generally available to the public other than as a
result of a disclosure by a Stockholder or its partners, directors, officers,
employees, agents, counsel, investment advisers or representatives (all such
persons being collectively referred to as "REPRESENTATIVES") in violation of the
Asset Purchase Agreement, (ii) is or was available to such Stockholder on a
nonconfidential basis prior to its disclosure to such Stockholder or its
Representatives by the Issuer or (iii) was or becomes available to such
Stockholder on a non-confidential basis from a source other than the Issuer,
provided that such source is or was (at the time of receipt of the relevant
information) not, to the best of such Stockholder's knowledge, bound by a
confidentiality agreement with (or other confidentiality obligation to) the
Issuer or another Person.

     5.2 New Stockholders. The Issuer agrees (and each Stockholder acknowledges)
that as a condition precedent to the issuance of any Equity Stock (including
options issued or reserved for issuance to Management and employees of the
Issuer) the Issuer will require the holder of such Equity Stock to agree in
writing to be bound by the terms of this Agreement. The terms of this Section
5.2 shall not apply to the issuance of Equity Stock in an Underwritten Public
Offering.

                                    ARTICLE 6
                                  MISCELLANEOUS

     6.1 Entire Agreement. The Transaction Documents constitute the entire
agreement between the parties with respect to the subject matter of the
Transaction Documents and supersede all prior agreements and understandings,
both oral and written, between the parties with respect to the subject matter of
this Agreement and the other Transaction Documents.

     6.2 Binding Effect; Benefit. This Agreement shall inure to the benefit of
and be binding upon the parties hereto and their respective heirs, successors,
legal representatives and


                                       22

<PAGE>

permitted assigns. Nothing in this Agreement, expressed or implied, is intended
to confer on any Person other than the parties hereto, and their respective
heirs, successors, legal representatives and permitted assigns, any rights,
remedies, obligations or liabilities under or by reason of this Agreement.

     6.3 Assignability. Neither this Agreement nor any right, remedy, obligation
or liability arising hereunder or by reason hereof shall be assignable by the
Issuer or any Stockholder, except in connection with a transfer of Stock
pursuant to the terms hereof; provided that any Person acquiring Stock who is
required by the terms of this Agreement to become a party hereto shall execute
and deliver to the Issuer an agreement to be bound by this Agreement and shall
thenceforth be a "Stockholder." Any Stockholder who ceases to beneficially own
any Stock shall cease to be bound by the terms hereof (other than Sections 4.6,
4.7, 4.8 and 5.1).

     6.4 Amendment; Waiver; Termination. (a) No provision of this Agreement may
be waived except by an instrument in writing executed by the party against whom
the waiver is to be effective. No provision of this Agreement may be amended or
otherwise modified except by an instrument in writing executed by the Issuer
with the approval of the Board and Stockholders holding or having the right to
acquire at least 85% of the Fully Diluted Common Stock held by parties to this
Agreement.

     (b) In addition, any amendment, modification or termination of any
provision of this Agreement that would adversely affect a DLJ Entity may be
effected only with the consent of such DLJ Entity.

     (c) In addition, any amendment, modification or termination of any
provision of this Agreement that would adversely affect Management may be
effected only with the consent of Management, respectively.

     6.5 Exclusive Financial Advisor and Investment Banking Advisor. During the
period from and including the date hereof through and including the fifth
anniversary hereof, Donaldson, Lufkin & Jenrette Securities Corporation
("DLJSC"), or any Affiliate of DLJSC that the DLJ Entities may choose in their
sole discretion, shall, at the option of the DLJ Affiliates, be engaged as the
exclusive financial advisor and investment banker for the Issuer for an annual
retainer fee which shall be on commercially reasonable terms to be agreed
between the Issuer and DLJSC.

     6.6 Notices. All notices and other communications given or made pursuant
hereto or pursuant to any other agreement among the parties, unless otherwise
specified, shall be in writing and shall be deemed to have been duly given or
made if sent by fax (with confirmation in writing), delivered personally or sent
by registered or certified mail (postage prepaid, return receipt requested) to
the parties at the fax number or address set forth below or at such other
addresses as shall be furnished by the parties by like notice, and such notice
or communication shall be deemed to have been given or made upon receipt:


                                       23

<PAGE>

     if to the DLJ Entities, to:

          DLJ Merchant Banking Partners, L.P.
          DLJ International Partners, C.V.
          DLJ Offshore Partners, C.V.
          DLJ Merchant Banking Funding, Inc.
          277 Park Avenue
          New York, New York 10172
          Attention: Thomas J. Barry
          Fax: (212) 892-7272

     and to:

          DLJ Capital Corporation
          Sprout Growth II, L.P.
          Sprout Capital VII, L.P.
          Sprout CEO Fund L.P.
          3000 Sand Hill Road
          Suite 270
          Menlo Park, California 94025
          Attention: Keith B. Geeslin
          Fax: (415) 854-8779

     with a copy to:

          Latham & Watkins
          885 Third Avenue
          New York, New York  10022
          Attention: R. Ronald Hopkinson
          Fax: (212) 751-4864

     if to Management or the Issuer, to:

          CommVault Systems, Inc.
          2 Industrial Way, Building D
          Eatontown, New Jersey 07724
          Attention: Scotty R. Neal
          Fax: (908) 935-8070

Any Person who becomes a Stockholder shall provide its address and fax number to
the Issuer, which shall promptly provide such information to each other
Stockholder.

     6.7 Headings. The headings contained in this Agreement are for convenience
only and shall not affect the meaning or interpretation of this Agreement.

     6.8 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original and all of which
together shall be deemed to be one and the same instrument.


                                       24

<PAGE>

     6.9 Applicable Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York, without regard to the
conflicts of law rules of such state.

     6.10 Specific Enforcement. Each party hereto acknowledges that the remedies
at law of the other parties for a breach or threatened breach of this Agreement
would be inadequate and, in recognition of this fact, any party to this
Agreement, without posting any bond, and in addition to all other remedies which
may be available, shall be entitled to obtain equitable relief in the form of
specific performance, a temporary restraining order, a temporary or permanent
injunction or any other equitable remedy which may then be available.

     6.11 Consent to Jurisdiction. Any suit, action or proceeding seeking to
enforce any provision of, or based on any matter arising out of or in connection
with, this Agreement or the transactions contemplated hereby be brought in the
United States District Court for the Southern District of New York or any other
New York State court sitting in New York City, and each of the parties hereby
consents to the non-exclusive jurisdiction of such courts (and of the
appropriate appellate courts therefrom) in any such suit, action or proceeding
and irrevocably waives, to the fullest extent permitted by law, any objection
which it may now or hereafter have to the laying of the venue of any such suit,
action or proceeding in any such court or that any such suit, action or
proceeding which is brought in any such court has been brought in an
inconvenient form. Process in any such suit, action or proceeding may be served
on any party anywhere in the world, whether within or without the jurisdiction
of any such court. Without limiting the foregoing, each party agrees that
service of process on such party as provided in Section 7.6 shall be deemed
effective service of process on such party.

               [Remainder of this page intentionally left blank.]


                                       25

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of, the day and year
first above written.

                                        DLJ MERCHANT BANKING PARTNERS, L.P.

                                        BY DLJ Merchant Banking, Inc.
                                           Managing General Partner


                                        By: /s/ Illegible
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                              Attorney-In-Fact


                                        DLJ INTERNATIONAL PARTNERS, C.V.

                                        BY DLJ Merchant Banking, Inc.
                                           Advisory General Partner


                                        By: /s/ Illegible
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                              Attorney-In-Fact


                                        DLJ OFFSHORE PARTNERS, C.V.

                                        BY DLJ Merchant Banking, Inc.
                                           Advisory General Partner


                                        By: /s/ Illegible
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                              Attorney-In-Fact


                                        DLJ MERCHANT BANKING FUNDING, INC.


                                        By: /s/ Illegible
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                              Attorney-In-Fact

<PAGE>

                                        COMMVAULT SYSTEMS, INC.


                                        By: /s/ Scotty R. Neal
                                            ------------------------------------
                                        Name: Scotty R. Neal
                                        Title: President


                                        /s/ Scotty R. Neal
                                        ----------------------------------------
                                        SCOTTY R. NEAL


                                        /s/ David H. Ireland
                                        ----------------------------------------
                                        DAVID H. IRELAND


                                        /s/ Robert Freiburghouse
                                        ----------------------------------------
                                        ROBERT FREIBURGHOUSE

<PAGE>

                                        DLJ CAPITAL CORPORATION


                                        By: /s/ Arthur S. Zuckerman
                                            ------------------------------------
                                            Arthur S. Zuckerman
                                            Attorney-In-Fact


                                        SPROUT GROWTH II, L.P.

                                        By: DLJ Capital Corporation,
                                            Managing General Partner


                                        By: /s/ Arthur S. Zuckerman
                                            ------------------------------------
                                            Arthur S. Zuckerman
                                            Attorney-In-Fact


                                        SPROUT CAPITAL VII, L.P.

                                        By: DLJ Capital Corporation,
                                            Managing General Partner


                                        By: /s/ Arthur S. Zuckerman
                                            ------------------------------------
                                            Arthur S. Zuckerman
                                            Attorney-In-Fact


                                        SPROUT CEO FUND L.P.

                                        By: DLJ Capital Corporation,
                                            Managing General Partner


                                        By: /s/ Arthur S. Zuckerman
                                            ------------------------------------
                                            Arthur S. Zuckerman
                                            Attorney-In-Fact
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.26
<SEQUENCE>15
<FILENAME>y17249a2exv10w26.txt
<DESCRIPTION>EX-10.26: AMENDMENT TO THE STOCKHOLDERS AGREEMENT
<TEXT>
<PAGE>

                                                                   EXHIBIT 10.26

                                    AMENDMENT
                                       TO
                           THE STOCKHOLDERS AGREEMENT

This Amendment to The Stockholders Agreement dated as of May 22, 1996 entered
into among DLJ Merchant Banking Partners, L.P., DLJ International Partners C.V.,
DLJ Offshore Partners, C.V., DLJ Merchant Banking Funding, Inc., DLJ Capital
Corporation, Sprout Growth II, L.P., Sprout Capital VII, L.P., Sprout CEO Fund
L.P., David H. Ireland, Scotty R. Neal, Robert Freiburghouse and CommVault
Systems, Inc. (the "Amendment") shall be effective as of the signature date
below.

WHEREAS, CommVault Systems, Inc., (the "Issuer") has entered into a
Stockholder's Agreement dated as of May 22, 1006 (the "Agreement") along with
the parties named above;

WHEREAS, the Issuer desires to amend the terms of said Agreement;

WHEREAS, Issuer has secured the proper approvals to amend the terms of said
Agreement;

NOW, THEREFORE, the Agreement shall be amended, pursuant to its terms, as
follows:

Section 2.1 shall be modified to read as follows:

(i)  General. (a) Until the earlier of (i) the fifth anniversary of the date of
     this Agreement or (ii) six (6) months or the date as otherwise set forth by
     the Underwriters from the consummation of an Initial Public Offering, the
     earlier of such dates, (the "Restriction Termination Date"), no stockholder
     may, directly or indirectly, sell, assign, transfer, grant a participation
     in, pledge or otherwise dispose of ("transfer") any Stock (or solicit any
     offers to buy or otherwise acquire, to take a pledge of, any of its Stock)
     except transfers permitted by Section 2.3.

Section 6.6 shall be modified to read as follows:

     If to Management or the Issuer, to:
          CommVault Systems, Inc.
          2 Crescent Place, Building B
          P.O. Box 900
          Oceanport, New Jersey 07757-0900
          Attention: CEO
          Fax: 732-870-4512

All capitalized terms shall have the same meaning as assigned to such term in
the Agreement. All terms and conditions of the Agreement which are not
specifically amended herein shall remain in full force and effect. This
Amendment shall be binding upon and inure to the benefit of the parties to the
Agreement.

<PAGE>

By signing below, the Issuer acknowledges that all approvals necessary relating
to the execution of this Agreement have been obtained and are in full force and
effect.

CommVault Systems, Inc.


/s/ Scotty R. Neal
----------------------------------------
Scotty R. Neal
Title: President
Date: July 23, 1998


                                        2
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.27
<SEQUENCE>16
<FILENAME>y17249a2exv10w27.txt
<DESCRIPTION>EX-10.27: SECOND AMENDMENT TO THE STOCKHOLDERS AGREEMENT
<TEXT>
<PAGE>


                                                                   EXHIBIT 10.27

                                    AMENDMENT
                                       TO
                           THE STOCKHOLDERS' AGREEMENT

     This Second Amendment (this "Amendment") to The Stockholders' Agreement
dated as of May 22, 1996, as amended, entered into among DLJ Merchant Banking
Partners, L.P., DLJ International Partners, C.V., DLJ Offshore Partners, C.V.,
DLJ Merchant Banking Funding, Inc., DLJ Capital Corporation, Sprout Growth II,
L.P., Sprout Capital VII, L.P., Sprout CEO Fund L.P. (collectively, the "DLJ
Entities"), David H. Ireland, Scotty R. Neal, Robert Freiburghouse and CommVault
Systems, Inc. (the "Issuer") shall be effective as of the signature date below.

     WHEREAS, the Issuer has entered into a Stockholders' Agreement dated as of
May 22, 1996, as amended (the "Agreement"), along with the DLJ Entities and the
other parties thereto; and

     WHEREAS, the Issuer and the DLJ Parties desire to amend the terms of the
Agreement;

     NOW THEREFORE, the Agreement shall be amended, pursuant to the terms, as
follows:

     1. The carryover paragraph directly after Section 4.1(a)(ii) shall be
     amended to replace the word "three" directly before "Demand Registrations"
     in the first proviso, with the word "six", with the intent that the DLJ
     Entities shall have the right to request up to six Demand Registrations
     pursuant to Section 4.1.

     2. Section 4.1(d) shall be modified to read as follows:

     "    (d) If a Demand Registration involves an Underwritten Public Offering
     and the managing underwriter shall advise the Issuer and the Selling
     Stockholders in writing that, in its opinion, the number of shares of
     Common Stock requested to be included in such registration (including
     Common Stock which the Issuer proposes to be included which is not
     Registrable Stock or any other securities of other parties with piggyback
     registration rights) exceeds the largest number of Stock which can be sold
     in an orderly manner within a price range acceptable to the Selling
     Stockholders (the "MAXIMUM OFFERING SIZE"), the Issuer will include such
     registration, in the priority listed below, up to the Maximum Offering
     Size:

          (i) first, the Registrable Stock requested be included in such
          registration by the Holders of Registrable Stock requesting such
          registration and any securities requested to be included therein by
          any other holder pursuant to such holder's piggyback rights granted
          under the Registration Rights Agreement, dated April 14, 2000 (the
          "PRIOR HOLDERS"), pro rata on the basis of the number of shares of
          Registrable Stock and other securities requested for inclusion in such
          registration by each such Holder or Prior Holder;

          (ii) second, any securities requested to be included therein by any
          other holders pursuant to such holders' piggyback rights, if any, pro
          rata on the basis of the

<PAGE>

          number of shares of such securities requested for inclusion in such
          registration by each such holder; and

          (iii) third, the Common Stock proposed to be registered by the Issuer,
          if any."

     3. Section 4.2(b) shall be modified to read as follows:

     "    (b) If a registration pursuant to this Section 4.2 involves a primary
     Underwritten Public Offering on behalf of the Issuer and the managing
     underwriter advises the Issuer that in its opinion, the numbers of shares
     of Common Stock requested to be included exceeds the Maximum Offering Size,
     the Issuer will include in such registration, in the following priority, up
     to the Maximum Offering Size:

          (i) first, the Common Stock proposed to be registered by the Issuer;

          (ii) second, the securities requested to be included in such
          registration by the Prior Holders pro rata on the basis of the number
          of shares of securities requested for inclusion in such registration
          by each such Prior Holder; and

          (iii) third, the Registrable Stock requested be included in such
          registration among the Holders of Registrable Stock requesting such
          registration and any securities requested to be included therein by
          any other holder pursuant to such holder's piggyback rights, if any,
          pro rata on the basis of the number of shares of Registrable Stock and
          other securities requested for inclusion in such registration by each
          such Holder or holder."

          (c) If a registration pursuant to this Section 4.2 involves a
     secondary Underwritten Public Offering requested by holders of the Issuer's
     securities other than the Holders of Registrable Stock and the managing
     underwriter advises the Issuer that in its view, the numbers of shares of
     Common Stock requested to be included exceeds the Maximum Offering Size,
     the Issuer will include in such registration, in the following priority, up
     to the Maximum Offering Size:

          (i) first, the securities requested be included in such registration
          by the holders requesting such registration and the securities of the
          Prior Holders requested to be included therein, if any, pro rata on
          the basis of the number of shares of such securities requested for
          inclusion in such registration by each such holder or Prior Holder;

          (ii) second, the Registrable Stock requested be included in such
          registration by the Holders of Registrable Stock and any securities
          requested to be included therein by any other holder pursuant to such
          holder's piggyback rights, if any, pro rata on the basis of the number
          of shares of Registrable Stock and other securities requested for
          inclusion in such registration by each such Holder or holder;

          (iii) third, the Common Stock proposed to be registered by the Issuer,
          if any.

<PAGE>

     4. All capitalized terms shall have the same meaning as assigned to such
     term in the Agreement. All terms and conditions of the Agreement which are
     not specifically amended herein shall remain in full force and effect. This
     Amendment shall be binding upon and inure to the benefit of the parties to
     the Agreement.

     5. This Amendment has been approved by the Board and the signatories hereto
     represent holders of at least 85% of the Fully Diluted Common Stock held by
     parites to the Agreement, in compliance with Section 6.4 of the Agreement.

                            [Signature Page Follows]

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed as of this 6th day of November, 2000

                                        DLJ MERCHANT BANKING PARTNERS, L.P.

                                        By: DLJ Merchant Banking, Inc.
                                            Managing General Partner


                                        By: /s/ Ivy Dodes
                                            ------------------------------------
                                        Name: Ivy Dodes
                                              Principal


                                        DLJ INTERNATIONAL PARTNERS, C.V.

                                        By: DLJ Merchant Banking, Inc.
                                            Advisory General Partner


                                        By: /s/ Ivy Dodes
                                            ------------------------------------
                                        Name: Ivy Dodes
                                              Principal


                                        DLJ OFFSHORE PARTNERS, C.V.

                                        By: DLJ Merchant Banking, Inc.
                                            Advisory General Partner


                                        By: /s/ Ivy Dodes
                                            ------------------------------------
                                        Name: Ivy Dodes
                                              Principal


                                        DLJ MERCHANT BANKING FUNDING, INC.


                                        By: /s/ Ivy Dodes
                                            ------------------------------------
                                        Name: Ivy Dodes
                                              Vice President

<PAGE>

                                        DLJ CAPITAL CORPORATION


                                        By: /s/ Arthur S. Zuckerman
                                            ------------------------------------
                                        Name: Arthur S. Zuckerman
                                              Authorized Signatory


                                        SPROUT GROWTH II, L.P.

                                        By: DLJ Capital Corporation,
                                            Managing General Partner


                                        By: /s/ Arthur S. Zuckerman
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------


                                        SPROUT CAPITAL VII, L.P.

                                        By: DLJ Capital Corporation,
                                            Managing General Partner


                                        By: /s/ Arthur S. Zuckerman
                                            ------------------------------------
                                        Name: Arthur S. Zuckerman
                                              Authorized Signatory


                                        SPROUT CEO FUND, L.P.

                                        By: DLJ Capital Corporation,
                                            Managing General Partner


                                        By: /s/ Arthur S. Zuckerman
                                            ------------------------------------
                                        Name: Arthur S. Zuckerman
                                              Authorized Signatory

<PAGE>

                                        DLJ FIRST ESC, L.P.

                                        By: DLJ LBO Management Corporation, its
                                            General Partner


                                        By: /s/ Ivy Dodes
                                            ------------------------------------
                                        Name: Ivy Dodes
                                              Principal

<PAGE>

                                        COMMVAULT SYSTEMS, INC.


                                        By: /s/ N. Robert Hammer
                                            ------------------------------------
                                        Name: N. Robert Hammer
                                        Title: President
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.28
<SEQUENCE>17
<FILENAME>y17249a2exv10w28.txt
<DESCRIPTION>EX-10.28: THIRD AMENDMENT TO THE STOCKHOLDERS AGREEMENT
<TEXT>
<PAGE>

                                                                   EXHIBIT 10.28

                                    AMENDMENT
                                       TO
                           THE STOCKHOLDERS' AGREEMENT

     This Third Amendment (this "Amendment") to The Stockholders' Agreement
dated as of May 22, 1996, as amended, entered into among DLJ Merchant Banking
Partners, L.P., DLJ International Partners, C.V., DLJ Offshore Partners, C.V.,
DLJ Merchant Banking Funding, Inc., DLJ Capital Corporation, Sprout Growth II,
L.P., Sprout Capital VII, L.P., Sprout CEO Fund L.P. (collectively, the "DLJ
Entities"), David H. Ireland, Scotty R. Neal, Robert Freiburghouse and CommVault
Systems, Inc. (the "Issuer") shall be effective as of the signature date below.

     WHEREAS, the Issuer has entered into a Stockholders' Agreement dated as of
May 22, 1996, as amended by the First Amendment thereto, dated July 23, 1998,
and the Second Amendment thereto, dated November 6, 2000 (as so amended, the
"Agreement"), along with the DLJ Entities and the other parties thereto; and

     WHEREAS, the Issuer and the DLJ Parties desire to amend the terms of the
Agreement;

     NOW THEREFORE, the Agreement shall be amended, pursuant to the terms, as
follows:

     1. Section 4.1(d) shall be modified to read as follows:

     "    (d) If a Demand Registration involves an Underwritten Public Offering
     and the managing underwriter shall advise the Issuer and the Selling
     Stockholders in writing that, in its opinion, the number of shares of
     Common Stock requested to be included in such registration (including
     Common Stock which the Issuer proposes to be included which is not
     Registrable Stock or any other securities of other parties with piggyback
     registration rights) exceeds the largest number of Stock which can be sold
     in an orderly manner within a price range acceptable to the Selling
     Stockholders (the "MAXIMUM OFFERING SIZE"), the Issuer will include such
     registration, in the priority listed below, up to the Maximum Offering
     Size:

          (i) first, the Registrable Stock requested be included in such
          registration by the Holders of Registrable Stock requesting such
          registration and any securities requested to be included therein by
          any other holder pursuant to such holder's piggyback rights granted
          under the Amended and Restated Registration Rights Agreement, dated as
          of February 14, 2002, relating to shares of the Company's Series AA
          Preferred Stock (the "SERIES AA HOLDERS") or pursuant to such holder's
          piggyback rights granted under the Registration Rights Agreement,
          dated as of February 14, 2002, relating to shares of the Company's
          Series CC Preferred Stock (the "SERIES CC HOLDERS");

          (ii) second, any securities requested to be included therein by any
          other holders pursuant to such holders' piggyback rights, if any, pro
          rata on the basis of the number of shares of such securities requested
          for inclusion in such registration by each such holder; and

<PAGE>

          (iii) third, the Common Stock proposed to be registered by the Issuer,
          if any."

     2. Section 4.2(b) shall be modified to read as follows:

     "    (b) If a registration pursuant to this Section 4.2 involves a primary
     Underwritten Public Offering on behalf of the Issuer and the managing
     underwriter advises the Issuer that in its opinion, the numbers of shares
     of Common Stock requested to be included exceeds the Maximum Offering Size,
     the Issuer will include in such registration, in the following priority, up
     to the Maximum Offering Size:

          (i) first, the Common Stock proposed to be registered by the Issuer;

          (ii) second, the securities requested to be included in such
          registration by the Series AA Holders and the Series CC Holders, if
          any; and

          (iii) third, the Registrable Stock requested be included in such
          registration among the Holders of Registrable Stock requesting such
          registration and any securities requested to be included therein by
          any other holder pursuant to such holder's piggyback rights, if any,
          pro rata on the basis of the number of shares of Registrable Stock and
          other securities requested for inclusion in such registration by each
          such Holder or holder."

          (c) If a registration pursuant to this Section 4.2 involves a
     secondary Underwritten Public Offering requested by holders of the Issuer's
     securities other than the Holders of Registrable Stock and the managing
     underwriter advises the Issuer that in its view, the numbers of shares of
     Common Stock requested to be included exceeds the Maximum Offering Size,
     the Issuer will include in such registration, in the following priority, up
     to the Maximum Offering Size:

          (i) first, the securities requested be included in such registration
          by the holders requesting such registration and the securities of the
          Series AA Holders and the Series CC Holders requested to be included
          therein, if any;

          (ii) second, the Registrable Stock requested be included in such
          registration by the Holders of Registrable Stock and any securities
          requested to be included therein by any other holder pursuant to such
          holder's piggyback rights, if any, pro rata on the basis of the number
          of shares of Registrable Stock and other securities requested for
          inclusion in such registration by each such Holder or holder;

          (iii) third, the Common Stock proposed to be registered by the Issuer,
          if any.

     3. All capitalized terms shall have the same meaning as assigned to such
     term in the Agreement. All terms and conditions of the Agreement which are
     not specifically amended herein shall remain in full force and effect. This
     Amendment shall be binding upon and inure to the benefit of the parties to
     the Agreement.

<PAGE>

     4. This Amendment has been approved by the Board and the signatories hereto
     represent holders of at least 85% of the Fully Diluted Common Stock held by
     parties to the Agreement, in compliance with Section 6.4 of the Agreement.

                            [Signature Page Follows]

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed as of this ____ day of February 2002.

                                        DLJ MERCHANT BANKING PARTNERS, L.P.

                                        By: DLJ Merchant Banking, Inc.
                                            Managing General Partner


                                        By: /s/ Ivy Dodes
                                            ------------------------------------
                                        Name: Ivy Dodes
                                              Principal


                                        DLJ INTERNATIONAL PARTNERS, C.V.

                                        By: DLJ Merchant Banking, Inc.
                                            Advisory General Partner


                                        By: /s/ Ivy Dodes
                                            ------------------------------------
                                        Name: Ivy Dodes
                                              Principal


                                        DLJ OFFSHORE PARTNERS, C.V.

                                        By: DLJ Merchant Banking, Inc.
                                            Advisory General Partner


                                        By: /s/ Ivy Dodes
                                            ------------------------------------
                                        Name: Ivy Dodes
                                              Principal


                                        DLJ MERCHANT BANKING FUNDING, INC.


                                        By: /s/ Ivy Dodes
                                            ------------------------------------
                                        Name: Ivy Dodes
                                              Vice President

<PAGE>

                                        DLJ CAPITAL CORPORATION


                                        By: /s/ Arthur S. Zuckerman
                                            ------------------------------------
                                        Name: Arthur S. Zuckerman
                                              President


                                        SPROUT GROWTH II, L.P.

                                        By: DLJ Capital Corporation,
                                            Managing General Partner


                                        By: /s/ Arthur S. Zuckerman
                                            ------------------------------------
                                        Name: Arthur S. Zuckerman
                                        Title: President


                                        SPROUT CAPITAL VII, L.P.

                                        By: DLJ Capital Corporation,
                                            Managing General Partner


                                        By: /s/ Arthur S. Zuckerman
                                            ------------------------------------
                                        Name: Arthur S. Zuckerman
                                              President


                                        SPROUT CEO FUND, L.P.

                                        By: DLJ Capital Corporation,
                                            Managing General Partner


                                        By: /s/ Arthur S. Zuckerman
                                            ------------------------------------
                                        Name: Arthur S. Zuckerman
                                              President

<PAGE>

                                        DLJ FIRST ESC, L.P.

                                        By: DLJ LBO Management Corporation, its
                                            General Partner


                                        By: /s/ Ivy Dodes
                                            ------------------------------------
                                        Name: Ivy Dodes
                                              Principal

<PAGE>

                                        COMMVAULT SYSTEMS, INC.


                                        By: /s/ N. Robert Hammer
                                            ------------------------------------
                                        Name: N. Robert Hammer
                                        Title: President
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.29
<SEQUENCE>18
<FILENAME>y17249a2exv10w29.txt
<DESCRIPTION>EX-10.29: FOURTH AMENDMENT TO THE STOCKHOLDERS AGREEMENT
<TEXT>
<PAGE>

                                                                   EXHIBIT 10.29

                                    AMENDMENT
                                       TO
                           THE STOCKHOLDERS' AGREEMENT

     This Fourth Amendment (this "Amendment") to The Stockholders' Agreement
dated as of May 22, 1996, as amended, entered into among DLJ Merchant Banking
Partners, L.P., DLJ International Partners, C.V., DLJ Offshore Partners, C.V.,
DLJ Merchant Banking Funding, Inc., DLJ Capital Corporation, Sprout Growth II,
L.P., Sprout Capital VII, L.P., Sprout CEO Fund L.P. (collectively, the "DLJ
Entities"), David H. Ireland, Scotty R. Neal, Robert Freiburghouse and CommVault
Systems, Inc. (the "Issuer") shall be effective as of this 2nd day of September,
2003.

     WHEREAS, the Issuer has entered into a Stockholders' Agreement dated as of
May 22, 1996, as amended by the First Amendment thereto, dated July 23, 1998,
the Second Amendment thereto, dated November 6, 2000, and the Third Amendment
thereto, dated February 14, 2002 (as so amended, the "Agreement"), along with
the DLJ Entities and the other parties thereto; and

     WHEREAS, the Issuer and the DLJ Parties desire to amend the terms of the
Agreement;

     NOW THEREFORE, the Agreement shall be amended, pursuant to the terms, as
follows:

     1. Section 4.1(d) shall be modified to read as follows:

     "    (d) If a Demand Registration involves an Underwritten Public Offering
     and the managing underwriter shall advise the Issuer and the Selling
     Stockholders in writing that, in its opinion, the number of shares of
     Common Stock requested to be included in such registration (including
     Common Stock which the Issuer proposes to be included which is not
     Registrable Stock or any other securities of other parties with piggyback
     registration rights) exceeds the largest number of Stock which can be sold
     in an orderly manner within a price range acceptable to the Selling
     Stockholders (the "MAXIMUM OFFERING SIZE"), the Issuer will include such
     registration, in the priority listed below, up to the Maximum Offering
     Size:

          (i) first, the Registrable Stock requested be included in such
          registration by the Holders of Registrable Stock requesting such
          registration and any securities requested to be included therein by
          any other holder pursuant to such holder's piggyback rights granted
          under the Amended and Restated Registration Rights Agreement, dated as
          of August __, 2003, relating to shares of the Company's Series AA
          Preferred Stock (the "SERIES AA HOLDERS") or pursuant to such holder's
          piggyback rights granted under the Amended and Restated Registration
          Rights Agreement, dated as of August __, 2003, relating to shares of
          the Company's Series CC Preferred Stock (the "SERIES CC HOLDERS");

          (ii) second, any securities requested to be included therein by any
          other holders pursuant to such holders' piggyback rights, if any, pro
          rata on the basis of the number of shares of such securities requested
          for inclusion in such registration by each such holder; and

<PAGE>

          (iii) third, the Common Stock proposed to be registered by the Issuer,
          if any."

     2. Sections 4.2(b) and 4.2(c) shall be modified to read as follows:

     "    (b) If a registration pursuant to this Section 4.2 involves a primary
     Underwritten Public Offering on behalf of the Issuer and the managing
     underwriter advises the Issuer that in its opinion, the numbers of shares
     of Common Stock requested to be included exceeds the Maximum Offering Size,
     the Issuer will include in such registration, in the following priority, up
     to the Maximum Offering Size:

          (i) first, the Common Stock proposed to be registered by the Issuer;

          (ii) second, the securities requested to be included in such
          registration by the Series AA Holders and the Series CC Holders, if
          any; and

          (iii) third, the Registrable Stock requested be included in such
          registration among the Holders of Registrable Stock requesting such
          registration and any securities requested to be included therein by
          any other holder pursuant to such holder's piggyback rights, if any,
          pro rata on the basis of the number of shares of Registrable Stock and
          other securities requested for inclusion in such registration by each
          such Holder or holder."

          (c) If a registration pursuant to this Section 4.2 involves a
     secondary Underwritten Public Offering requested by holders of the Issuer's
     securities other than the Holders of Registrable Stock and the managing
     underwriter advises the Issuer that in its view, the numbers of shares of
     Common Stock requested to be included exceeds the Maximum Offering Size,
     the Issuer will include in such registration, in the following priority, up
     to the Maximum Offering Size:

          (i) first, the securities requested be included in such registration
          by the holders requesting such registration and the securities of the
          Series AA Holders and the Series CC Holders requested to be included
          therein, if any;

          (ii) second, the Registrable Stock requested be included in such
          registration by the Holders of Registrable Stock and any securities
          requested to be included therein by any other holder pursuant to such
          holder's piggyback rights, if any, pro rata on the basis of the number
          of shares of Registrable Stock and other securities requested for
          inclusion in such registration by each such Holder or holder;

          (iii) third, the Common Stock proposed to be registered by the Issuer,
          if any.

     3. All capitalized terms shall have the same meaning as assigned to such
     term in the Agreement. All terms and conditions of the Agreement which are
     not specifically amended herein shall remain in full force and effect. This
     Amendment shall be binding upon and inure to the benefit of the parties to
     the Agreement.


                                       2

<PAGE>

     4. This Amendment has been approved by the Board and the signatories hereto
     represent holders of at least 85% of the Fully Diluted Common Stock held by
     parties to the Agreement, in compliance with Section 6.4 of the Agreement.

                            [Signature Page Follows]


                                        3

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed as of the date first above written.

                                        DLJ MERCHANT BANKING PARTNERS, L.P.

                                        By: DLJ Merchant Banking, Inc.
                                            Managing General Partner


                                        By: /s/ George Hornig
                                            ------------------------------------
                                            George Hornig
                                            Attorney-In-Fact


                                        DLJ INTERNATIONAL PARTNERS, C.V.

                                        By: DLJ Merchant Banking, Inc.
                                            Advisory General Partner


                                        By: /s/ George Hornig
                                            ------------------------------------
                                            George Hornig
                                            Attorney-In-Fact


                                        DLJ OFFSHORE PARTNERS, C.V.

                                        By: DLJ Merchant Banking, Inc.
                                            Advisory General Partner


                                        By: /s/ George Hornig
                                            ------------------------------------
                                            George Hornig
                                            Attorney-In-Fact


                                        DLJ MERCHANT BANKING FUNDING, INC.


                                        By: /s/ George Hornig
                                            ------------------------------------
                                            George Hornig
                                            Attorney-In-Fact


                                        4

<PAGE>

                                        DLJ CAPITAL CORPORATION


                                        By: /s/ Keith B. Geeslin
                                            ------------------------------------


                                        SPROUT GROWTH II, L.P.

                                        By: DLJ Capital Corporation,
                                            Managing General Partner


                                        By: /s/ Keith B. Geeslin
                                            ------------------------------------


                                        SPROUT CAPITAL VII, L.P.

                                        By: DLJ Capital Corporation,
                                            Managing General Partner


                                        By: /s/ Keith B. Geeslin
                                            ------------------------------------


                                        SPROUT CEO FUND, L.P.

                                        By: DLJ Capital Corporation,
                                            Managing General Partner


                                        By: /s/ Keith B. Geeslin
                                            ------------------------------------


                                        DLJ FIRST ESC, L.P.

                                        By: DLJ LBO Management Corporation, its
                                            General Partner


                                        By: /s/ Keith B. Geeslin
                                            ------------------------------------


                                        5

<PAGE>

                                        COMMVAULT SYSTEMS, INC.


                                        By: /s/ N. Robert Hammer
                                            ------------------------------------
                                            N. Robert Hammer
                                            President


                                        6
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.30
<SEQUENCE>19
<FILENAME>y17249a2exv10w30.txt
<DESCRIPTION>EX-10.30: FIFTH AMENDMENT TO THE STOCKHOLDERS AGREEMENT
<TEXT>
<PAGE>

                                                                   EXHIBIT 10.30

                   FIFTH AMENDMENT TO STOCKHOLDERS' AGREEMENT

     This Fifth Amendment (this "Amendment"), dated as of May 22, 2006, to the
Original Agreement (as defined below) is by and among DLJ Merchant Banking
Partners, L.P., DLJ International Partners, C.V., DLJ Offshore Partners, C.V.,
DLJ Merchant Banking Funding, Inc., DLJ Capital Corporation, DLJ First ESC,
L.P., DLJ ESC II, L.P., Sprout Growth II, L.P., Sprout Capital VII, L.P., Sprout
Capital IX, L.P., Sprout Entrepreneurs' Fund, L.P., Sprout IX Plan Investors,
L.P., Sprout CEO Fund L.P., Thomas J. Barry, Larry Cormier, Randy Fodero, Robert
Freiburghouse, Bob Gailus, N. Robert Hammer, David H. Ireland, Lou Miceli, Tom
Miller, Scotty R. Neal and CommVault Systems, Inc., a Delaware corporation.

                                   WITNESSETH:

     WHEREAS, the parties hereto previously entered into a Stockholders'
Agreement, dated as of May 22, 1996, as amended by the First Amendment thereto,
dated July 23, 1998, the Second Amendment thereto, dated November 6, 2000, the
Third Amendment thereto, dated February 14, 2002, and the Fourth Amendment
thereto, dated September 2, 2003 (as so amended, the "Original Agreement");

     WHEREAS, the parties hereto desire to amend the Original Agreement to
extend certain provisions of the Original Agreement as set forth herein; and

     WHEREAS, in compliance with Section 6.4(a) of the Original Agreement, this
Amendment has been approved by the Board and the signatories hereto represent
holders of at least 85% of the Fully Diluted Common Stock held by parties to the
Original Agreement.

     NOW THEREFORE, the parties hereto agree that the Original Agreement shall
be amended as follows:

Section 1. Definitions. Capitalized terms used but not defined herein shall have
the meaning assigned such terms in the Original Agreement.

Section 2. Extension. Each provision of the Original Agreement that was in full
force and effect immediately prior to the execution of this Amendment, and had
not expired or terminated pursuant to its terms prior to the date hereof, shall
hereby be extended, and the rights and obligations set forth in each such
provision shall continue in full force and effect, until the earlier of (a) the
first anniversary of the date of this Amendment and (b) the consummation of an
Initial Public Offering.

Section 3. Miscellaneous.

     (a) This Amendment shall be binding upon and shall inure to the benefit of
the parties to the Original Agreement.

<PAGE>

     (b) This Amendment may be executed in any number of counterparts, each of
which shall be deemed to be an original and all of which together shall be
deemed one and the same instrument.

                                      *****

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed by their respective authorized officers as of, the day and year
first above written.

                                        DLJ MERCHANT BANKING PARTNERS, L.P.

                                        By: DLJ Merchant Banking, Inc.
                                        Managing General Partner


                                        By: /s/ Goerge R. Hornig
                                            ------------------------------------
                                        Name: George R. Hornig
                                        Title: Attorney-In-Fact


                                        DLJ INTERNATIONAL PARTNERS, C.V.

                                        By: DLJ Merchant Banking, Inc.
                                        Advisory General Partner


                                        By: /s/ George R. Hornig
                                            ------------------------------------
                                        Name: George R. Hornig
                                        Title: Attorney-In-Fact


                                        DLJ OFFSHORE PARTNERS, C.V.

                                        By: DLJ Merchant Banking, Inc.
                                        Advisory General Partner


                                        By: /s/ George R. Hornig
                                            ------------------------------------
                                        Name: George R. Hornig
                                        Title: Attorney-In-Fact


                                        DLJ MERCHANT BANKING FUNDING, INC.


                                        By: /s/ George R. Hornig
                                            ------------------------------------
                                        Name: George R. Hornig
                                        Title: President

<PAGE>

                                        DLJ CAPITAL CORPORATION


                                        By: /s/ Amy Yeung
                                            ------------------------------------
                                        Name: Amy Yeung
                                              Vice President


                                        DLJ FIRST ESC, L.P.

                                        By: DLJ LBO Management Corporation,
                                        its General Partner


                                        By: /s/ George R. Hornig
                                            ------------------------------------
                                        Name: George R. Hornig
                                        Title: President


                                        DLJ ESC II, L.P.

                                        By: DLJ LBO Management Corporation,
                                        its General Partner


                                        By: /s/ George R. Hornig
                                            ------------------------------------
                                        Name: George R. Hornig
                                        Title: President


                                        SPROUT GROWTH II, L.P.

                                        By: DLJ Capital Corporation
                                        Managing General Partner


                                        By: /s/ Amy M. Yeung
                                            ------------------------------------
                                        Name: Amy M. Yeung
                                              Vice President

<PAGE>

                                        SPROUT CAPITAL VII, L.P.

                                        By: DLJ Capital Corporation
                                        Managing General Partner


                                        By: /s/ Amy M. Yeung
                                            ------------------------------------
                                        Name: Amy M. Yeung
                                              Vice President


                                        SPROUT CAPITAL IX, L.P.

                                        By: DLJ Capital Corporation
                                        Managing General Partner


                                        By: /s/ Amy M. Yeung
                                            ------------------------------------
                                        Name: Amy M. Yeung
                                              Vice President


                                        SPROUT IX PLAN INVESTORS, L.P.

                                        By: DLJ Capital Corporation
                                        Managing General Partner


                                        By: /s/ Amy M. Yeung
                                            ------------------------------------
                                        Name: Amy M. Yeung
                                              Attorney-In-Fact


                                        SPROUT CEO FUND L.P.

                                        By: DLJ Capital Corporation
                                        Managing General Partner


                                        By: /s/ Amy M. Yeung
                                            ------------------------------------
                                        Name: Amy M. Yeung
                                              Vice President

<PAGE>

                                        SPROUT ENTREPRENEURS' FUND

                                        By: DLJ Capital Corporation
                                        Managing General Partner


                                        By: /s/ Amy M. Yeung
                                            ------------------------------------
                                        Name: Amy M. Yeung
                                              Vice President


                                        ----------------------------------------
                                        THOMAS J. BARRY


                                        ----------------------------------------
                                        LARRY CORMIER


                                        ----------------------------------------
                                        RANDY FODERO


                                        ----------------------------------------
                                        ROBERT FREIBURGHOUSE


                                        ----------------------------------------
                                        BOB GAILUS


                                        ----------------------------------------
                                        N. ROBERT HAMMER


                                        ----------------------------------------
                                        DAVID H. IRELAND


                                        ----------------------------------------
                                        LOU MICELI

<PAGE>


                                        ----------------------------------------
                                        TOM MILLER


                                        ----------------------------------------
                                        SCOTTY R. NEAL


                                        COMMVAULT SYSTEMS, INC.


                                        By: /s/ N. Robert Hammer
                                            ------------------------------------
                                        Name: N. Robert Hammer
                                        Title: President


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>20
<FILENAME>y17249a2exv23w1.txt
<DESCRIPTION>EX-23.1: CONSENT OF ERNST & YOUNG LLP
<TEXT>
<PAGE>

                                                                    Exhibit 23.1

            Consent of Independent Registered Public Accounting Firm

We consent to the reference to our firm under the caption "Experts" and to the
use of our report dated June 28, 2006, in Amendment No. 2 to the Registration
Statement (Form S-1 No. 333-132550) and related Prospectus of CommVault Systems,
Inc.

/s/   Ernst & Young LLP

MetroPark, New Jersey
June 28, 2006
</TEXT>
</DOCUMENT>
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end
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