<SUBMISSION>
<ACCESSION-NUMBER>0000950123-06-011665
<TYPE>S-1/A
<PUBLIC-DOCUMENT-COUNT>22
<FILING-DATE>20060915
<DATE-OF-FILING-DATE-CHANGE>20060915
<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>061094020
</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>y24537a5sv1za.htm
<DESCRIPTION>AMENDMENT NO. 5 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
September&nbsp;15, 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="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;5</B>
</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">
    $185,277,781</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    $19,825(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">
    $16,050 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="#D62828">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="#D62828">SUBJECT TO COMPLETION, DATED
SEPTEMBER&nbsp;15, 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; ">
11,111,111&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="y24537a5y2453700.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 $12.50 and $14.50&nbsp;per
share. We have applied to list our common stock on The NASDAQ
Global 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 6,148,148 shares of common stock and the selling
stockholders are selling 4,962,963 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
1,666,667 additional shares from the selling stockholders to
cover over-allotments of 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;
<B>Investing in our common stock involves risks. See &#147;Risk
Factors&#148; on page&nbsp;14.</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="39%">&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="5%">&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="4%">&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="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="3">&nbsp;</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>Price to 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;</TD>
    <TD align="right" valign="top" nowrap>$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>$</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;&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="y24537a5y2453701.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>

<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>14</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>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='#104'>Use
    of Proceeds</A>
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31</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>31</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>32</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>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='#108'>Selected
    Financial Data</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='#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>39</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>58</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>71</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>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='#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>83</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>86</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>88</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>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='#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>96</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>99</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>106</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>106</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>107</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="y24537a5exv1w1.txt">EX-1.1: FORM OF UNDERWRITING AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y24537a5exv3w1.txt">EX-3.1: AMENDED AND RESTATED CERTIFICATE OF INCORPORATION</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y24537a5exv3w2.txt">EX-3.2: FORM OF AMENDED AND RESTATED CERTIFICATE OF INCORPORATION</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y24537a5exv3w3.txt">EX-3.3: FORM OF AMENDED AND RESTATED BYLAWS</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y24537a5exv4w1.txt">EX-4.1: FORM OF COMMON STOCK CERTIFICATE</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y24537a5exv5w1.txt">EX-5.1: OPINION OF MAYER, BROWN, ROWE & MAW LLP</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y24537a5exv9w1.txt">EX-9.1: FORM OF VOTING TRUST AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y24537a5exv10w2.txt">EX-10.2: 1996 STOCK OPTION PLAN</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y24537a5exv10w3.txt">EX-10.3: FORM OF 2006 LONG-TERM STOCK INCENTIVE PLAN</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y24537a5exv10w4.txt">EX-10.4: FORM OF NON-QUALIFIED STOCK OPTION AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y24537a5exv10w13.txt">EX-10.13: FORM OF REGISTRATION RIGHTS AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y24537a5exv10w18.txt">EX-10.18: SOFTWARE LICENSE AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y24537a5exv10w19.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="y24537a5exv10w20.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="y24537a5exv10w21.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="y24537a5exv10w22.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="y24537a5exv10w23.txt">EX-10.23: RESELLER AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y24537a5exv21w1.txt">EX-21.1: LIST OF SUBSIDIARIES</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y24537a5exv23w1.txt">EX-23.1: CONSENT OF ERNST & YOUNG LLP</A></FONT></TD></TR>
</TABLE>
</CENTER>

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

</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 align="left" style="font-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" style="font-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 June&nbsp;30, 2006, we had licensed our
data management software to approximately&nbsp;4,300 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&nbsp;servers protected by our software.
</DIV>

<DIV align="left" style="font-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 and the three
months ended June&nbsp;30, 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" style="font-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" style="font-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" style="font-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
</DIV>
</DIV>

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

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

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
reference into this prospectus, and you should not consider
information contained on our website as part 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;
&#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 one&nbsp;share for each
two&nbsp;shares 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 valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We intend to borrow $15.0&nbsp;million on or immediately prior
    to the closing date of this offering under our new
    $20.0&nbsp;million term loan with Silicon Valley Bank in
    connection with the payments to the holders of our
    Series&nbsp;A, B, C, D and E preferred stock described below.
    The terms of our new loan 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;</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">
    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 6,332,508&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>

</TABLE>

<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>30.6</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>141.2</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" style="font-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 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">
    At the time of conversion, holders of Series&nbsp;A, B, C, D and
    E preferred stock will also receive $101.8&nbsp;million
    consisting of:</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="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: 3.0pt">&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 $54.8&nbsp;million in the aggregate assuming that this
    offering closes on September&nbsp;26, 2006.</TD>
</TR>

</TABLE>
</DIV>

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

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<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="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, the concurrent private placement described below,
    approximately $10.7&nbsp;million of our existing cash and cash
    equivalents 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="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 outstanding shares of Series&nbsp;AA, BB and CC preferred
    stock will be converted into a total of 9,686,972&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>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    We will complete a private placement of 102,640&nbsp;shares of
    our common stock at the public offering price to Greg Reyes,
    Reyes Family Trust, Van Wagoner Capital Partners, L.P. and Van
    Wagoner Crossover Fund,&nbsp;L.P., 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 $13.50&nbsp;per share (the
    midpoint of the estimated price range shown on the cover page of
    this prospectus) we will raise approximately $1.4&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)&nbsp;in the assumed initial public
offering price of $13.50 per share would increase
(decrease)&nbsp;the net proceeds to us from this offering and
the concurrent private placement by $5.8&nbsp;million and would
decrease the amount of borrowings on the closing date under our
new term loan by $5.8&nbsp;million (increase the amount of
borrowings on the closing date under our new term loan by
$5.0&nbsp;million and decrease cash and cash equivalents by
$0.8&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;
Affiliates of Credit Suisse Securities (USA)&nbsp;LLC, an
underwriter in this offering, own approximately 62.9% of our
common stock as of July&nbsp;31, 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 7,736,702&nbsp;shares of our common
stock. We will also pay to affiliates of Credit Suisse
Securities (USA)&nbsp;LLC $98.0&nbsp;million from the net
proceeds of this offering, the concurrent private placement,
borrowings under our new term loan and cash from our existing
cash and cash equivalents balance 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
September&nbsp;26, 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" style="font-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 3,295,516&nbsp;shares (or 4,962,183&nbsp;shares
if the underwriters exercise their over-allotment option in
full) in this offering and will receive aggregate sale proceeds
of $41.4&nbsp;million, or $62.3&nbsp;million if the underwriters
exercise their over-allotment option in full (in each case,
based on an offering price of $13.50&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 39.9% of our common stock (or approximately 35.9%
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" style="font-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.
</DIV>
</DIV>

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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;">
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
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>

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<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: 3pt; 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">
    6,148,148&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">
    4,962,963&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">
    11,111,111&nbsp;shares (or 12,777,778&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">
    102,640&nbsp;shares</TD>
</TR>

<TR>
    <TD style="font-size: 3.0pt">&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">
    41,651,028&nbsp;shares</TD>
</TR>

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

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

<TR>
    <TD style="font-size: 3.0pt">&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 $74.7&nbsp;million (based on an
    offering price of $13.50&nbsp;per share, the midpoint of the
    estimated price range shown on the cover page of this
    prospectus), together with the estimated proceeds of
    $1.4&nbsp;million from the concurrent private placement (based
    on an offering price of $13.50&nbsp;per share, the midpoint of
    the estimated price range shown on the cover page of this
    prospectus), estimated borrowings of $15.0&nbsp;million under
    our new term loan and approximately $10.7&nbsp;million of our
    existing cash and cash equivalents to pay $101.8&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: 3.0pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    A $1.00 increase (decrease)&nbsp;in the assumed initial public
    offering price of $13.50 per share would increase
    (decrease)&nbsp;the net proceeds to us from this offering and
    the concurrent private placement by $5.8&nbsp;million and would
    decrease the amount of borrowings on the closing date under our
    new term loan by $5.8&nbsp;million (increase the amount of
    borrowings on the closing date under our new term loan by
    $5.0&nbsp;million and decrease cash and cash equivalents by
    $0.8&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: 3.0pt">&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>

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

<TR>
    <TD valign="top">
    Directed share program</TD>
    <TD></TD>
    <TD valign="top">
    The underwriters have reserved 890,952 shares of our common
    stock offered in this prospectus for sale to holders of shares
    of our Series&nbsp;CC preferred stock at a price per share equal
    to the price to the public shown on the cover page of this
    prospectus. The holders acquired certain preemptive rights in
    connection with their acquisition of shares of Series&nbsp;CC</TD>
</TR>

</TABLE>
</DIV>

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<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">
</TD>
    <TD></TD>
    <TD valign="top">
    preferred stock. The holders have waived their preemptive rights
    in connection with this offering, and any future preemptive
    rights will terminate at the closing of this offering. In lieu
    of such preemptive rights, the Series&nbsp;CC holders will be
    offered pursuant to the directed share program a number of
    shares of common stock equal to the number of shares such
    holders would have been entitled to acquire pursuant to their
    preemptive rights. The number of shares available for sale to
    the general public in this offering will be reduced to the
    extent the holders of our Series CC preferred stock purchase the
    reserved shares. Any reserved shares not so purchased will be
    offered by the underwriters to the general public on the same
    terms as the other shares.</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
35,400,240&nbsp;shares outstanding on an as-converted basis as
of July&nbsp;31, 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 valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    231,306&nbsp;shares of common stock available for issuance under
    our 1996 Stock Option Plan, including 7,821,713&nbsp;shares of
    common stock issuable upon exercise of outstanding stock options
    as of July&nbsp;31, 2006 at a weighted average exercise price of
    $5.89&nbsp;per share; 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">
    4,000,000&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>

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<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" style="font-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. We derived
the summary historical financial data for each of the three
months ended June&nbsp;30, 2005 and 2006 and as of June&nbsp;30,
2006 from our unaudited consolidated interim financial
statements that are also included elsewhere in this prospectus.
In our opinion, our unaudited consolidated interim financial
statements have been prepared on the same basis as our audited
consolidated financial statements and include all adjustments,
consisting of normal recurring adjustments, that management
considers necessary for a fair presentation of the financial
position and results of operations for these periods. The
results of any interim period are not necessarily indicative of
the results that may be expected for any other interim period or
for the full fiscal year, and the historical results set forth
below do not necessarily indicate results expected for any
future 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 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>

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

<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>
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    <TD width="28%">&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="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 colspan="4">&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="6" align="center" nowrap><B>For the Three</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Months Ended</B></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>For the Year Ended March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>June&nbsp;30,</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>
    <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="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>
    <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>
    <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="26" 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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>62,422</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>18,788</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>
    <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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,788</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,660</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,734</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>
    <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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33,522</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>337</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>272</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,683</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,513</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>
    <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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,785</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,737</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,853</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,307</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,338</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,418</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,653</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>497</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>
    <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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(552</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,862</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(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>&#151;</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">
    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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>524</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(381</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,386</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(45</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>

</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(365</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,341</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,411</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,411</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>

</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">$</TD>
    <TD align="right" valign="bottom" nowrap>5,095</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1,776</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,930</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>
    <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(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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>(1.96</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1.20</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.93</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.28</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.09</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.07</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>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>(1.96</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1.20</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.93</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.28</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.09</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.06</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>18,112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,601</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,807</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,039</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>
    <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>18,112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,601</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,807</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,110</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>
    <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(2):</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>
</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">$</TD>
    <TD align="right" valign="bottom" nowrap>(1.83</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</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">&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>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>(1.83</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.07</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>
    <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(2):</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>
</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>41,109</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41,309</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>
    <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>41,109</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,694</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>
    <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" style="font-size: 3.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<DIV style="width: 15%; 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">
    See page&nbsp;F-12 in the consolidated financial statements for
    a reconciliation of the basic and diluted earnings per share
    calculation.</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;">

<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="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="12%">&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>As of June&nbsp;30, 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(3)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As Adjusted(5)</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">$</TD>
    <TD align="right" valign="bottom" nowrap>53,501</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>42,785</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>42,785</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>28,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(72,163</TD>
    <TD align="left" valign="bottom" nowrap>)(4)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,527</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>78,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65,985</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <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>100,579</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 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>(70,363</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(70,190</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,141</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>(2)&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
    and the three months ended June&nbsp;30, 2006 gives effect to:</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="1%"></TD>
    <TD width="96%"></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 16,019,480&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 $101.8&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
    September&nbsp;26, 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 $13.50&nbsp;per share,
    the midpoint of the estimated price range shown on the cover
    page of this prospectus);</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 $15.0&nbsp;million under our new term loan at
    an interest rate equal to 30-day LIBOR plus 1.50%, and assumed
    to be 6.8% per year (assuming that this offering and the
    concurrent private placement are priced at $13.50&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 use of $10.7&nbsp;million of our existing cash and cash
    equivalents in connection with the payments to the holders of
    our Series&nbsp;A, B, C, D and E preferred stock;</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">
    as if each had occurred on April 1, 2005.</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>

<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="57%">&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="15%">&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>Three Months</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>Year Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ended June&nbsp;30,</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>
    <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 style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" 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">$</TD>
    <TD align="right" valign="bottom" nowrap>5,095</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,930</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,411</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>
    <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">
    Accretion of fair value of preferred stock upon conversion</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>85,330</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 align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense associated with term loan borrowings, net of
    income taxes of $23 and $2, respectively</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>774</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>120</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">
    Pro forma as adjusted net income (loss) attributable to common
    stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(75,348</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,221</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 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">
     A $1.00 increase (decrease) in the assumed initial public
    offering price of $13.50 per share would increase (decrease) the
    net proceeds to us from this offering and the concurrent private
    placement by $5.8&nbsp;million and would decrease the amount of
    borrowings on the closing date under our new term loan by
    $5.8&nbsp;million (increase the amount of borrowings on the
    closing date under our new term loan by $5.0&nbsp;million and
    decrease cash and cash equivalents by $0.8&nbsp;million), would
    increase (decrease)</TD>
</TR>

</TABLE>
</DIV>

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

<!-- 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 valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    the pro forma as adjusted net income (loss) attributable to
    common stockholders by $0.3&nbsp;million and less than
    $0.1&nbsp;million in the year ended March&nbsp;31, 2006 and in
    the three months ended June&nbsp;30, 2006, respectively, and
    would increase (decrease) the pro&nbsp;forma as adjusted net
    income (loss) attributable to common stockholders per share by
    $0.01 and less than $0.01 in the year ended March&nbsp;31, 2006
    and in the three months ended June&nbsp;30, 2006, 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.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    A 0.125% increase (decrease) in the assumed interest rate on
    $15.0 million of borrowings under our new term loan would
    increase (decrease) interest expense by less than
    $0.1&nbsp;million in both the year ended March&nbsp;31, 2006 and
    the three months ended June&nbsp;30, 2006, would decrease
    (increase) pro forma as adjusted net income (loss) attributable
    to common stockholders by less than $0.1&nbsp;million in the
    year ended March&nbsp;31, 2006 and the three months ended
    June&nbsp;30, 2006 and would decrease (increase) pro&nbsp;forma
    as adjusted net income (loss) attributable to common
    stockholders per share by less than $0.01 in both the year ended
    March&nbsp;31, 2006 and the three months ended June&nbsp;30,
    2006.</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>

<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="53%">&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="19%">&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>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three Months 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>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30, 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 style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" 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>18,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,039</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>
    <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>16,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,019</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>6,148</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,148</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>103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>103</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>
    <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>41,109</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41,309</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>

<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="53%">&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="19%">&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>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Three Months 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>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30, 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 style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" 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>30,932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,110</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>
    <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">
    Anti-dilutive stock options</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,192</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 align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Anti-dilutive common stock warrants</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>215</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="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>
    <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 conversion of outstanding preferred stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,333</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 this offering</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,148</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,148</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>103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>103</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">
    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>41,109</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,694</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>

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

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

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    The pro forma balance sheet data as of June&nbsp;30, 2006 gives
    effect to each of the following as if each had occurred at
    June&nbsp;30, 2006.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; 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">
    the conversion of all outstanding shares of our preferred stock
    into a total of 16,019,480&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 amount payable totaling $101.8&nbsp;million reflecting 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
    September&nbsp;26, 2006);</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 $15.0&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;</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 use of $10.7&nbsp;million of our existing cash and cash
    equivalents 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: 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
    102,640&nbsp;shares of our common stock at the public offering
    price and the application of the proceeds therefrom. Assuming an
    offering price of $13.50&nbsp;per share (the midpoint of the
    estimated price range shown on the cover page of this
    prospectus) we will raise approximately $1.4&nbsp;million in
    proceeds from the concurrent private placement.</TD>
</TR>

</TABLE>

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<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 $13.50 per share would increase (decrease) the
    net proceeds to us from this offering and the concurrent private
    placement by $5.8&nbsp;million and would decrease the amount of
    borrowings on the closing date under our new term loan by
    $5.8&nbsp;million (increase the amount of borrowings on the
    closing date under our new term loan by $5.0&nbsp;million and
    decrease cash and cash equivalents by $0.8&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>

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

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    Adjustment to working capital primarily reflects the balance of
    amounts payable to the holders of our Series&nbsp;A, B, C, D and
    E preferred stock, which will be paid with the proceeds from
    this offering.</TD>
</TR>

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

<TR valign="top">
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    The pro forma as adjusted balance sheet data as of June&nbsp;30,
    2006 reflects the issuance of 6,148,148&nbsp;shares of common
    stock in this offering at an assumed initial offering price of
    $13.50&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
    June&nbsp;30, 2006.</TD>
</TR>

</TABLE>
</DIV>

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<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" style="font-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
attributable to common stockholders of approximately
$5.1&nbsp;million for fiscal 2006 and net income attributable to
common stockholders of approximately $1.9&nbsp;million for three
months ended June&nbsp;30, 2006. As of June&nbsp;30, 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" 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>

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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>

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    <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 and the three months ended June&nbsp;30, 2006, a majority
    of our quarterly revenues was earned and recorded near the end
    of each quarter;</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>

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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" style="font-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 12% of our total revenues for fiscal
2006 and approximately 14% of our total revenues for the three
months ended June&nbsp;30, 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 approximately 7% and 15%
respectively, of total revenues for the three months ended
June&nbsp;30, 2006. In addition, Dell accounted for a total of
approximately 25% of our accounts receivable balance as of
June&nbsp;30, 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" 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>

<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 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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<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 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" 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
2006 and 15% of our total revenues for the three months ended
June&nbsp;30, 2006.
</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>

<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>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" 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 and the three months ended June&nbsp;30,
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" 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
</DIV>

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these bugs, errors or other weaknesses. Any of these events may
result in the loss of, or delay in, market 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" style="font-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. For the three months ended,
June&nbsp;30, 2006, our research and development expenses were
$5.4&nbsp;million, or approximately 16% of our total revenues.
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" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<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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    <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>

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<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" style="font-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 52% for the three months ended June 30, 2006
compared to the three months ended June 30, 2005. The number of
our customers increased significantly during these periods. 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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<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">
    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>

<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 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" style="font-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, 43% of our total revenues
for fiscal 2006 and 44% of our total revenues for the three
months ended June&nbsp;30, 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, 71.9% for fiscal
2006 and 69.4% for the three months ended June&nbsp;30, 2006.
The gross margin of our software revenue was 97.0% for fiscal
2005,
</DIV>

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97.2% for fiscal 2006 and 98.6% for the three months ended
June&nbsp;30, 2006. An increase in the percentage of total
revenues represented by services revenue would adversely affect
our overall gross margins.
</DIV>

<DIV align="left" style="font-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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<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">
    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" style="font-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 and the three months ended
June&nbsp;30, 2006, we derived approximately 29% and 27%,
respectively, of our revenues from sales outside the United
States.
</DIV>

<DIV align="left" style="font-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>

<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">
    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" style="font-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% and 27% of our sales
were outside the United States in fiscal 2006 and in the three
months ended June&nbsp;30, 2006, respectively. Our primary
</DIV>

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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 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" 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" style="font-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" style="font-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 changed our customary
business practice and began to require and utilize a signed
Statement of Work documenting the scope of our other
professional services offerings greater than $10,000 (excluding
training), in addition to a signed purchase order, when sold and
performed on a stand-alone basis or included in 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" style="font-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" style="font-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
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
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" 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" style="font-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 and the three months ended June&nbsp;30, 2006
approximately 8% and 11%, respectively, 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" style="font-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>

</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">
    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 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
</DIV>

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

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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">
    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>

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<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
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>

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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>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: 3pt; 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>

<TR>
    <TD style="font-size: 3.0pt">&nbsp;</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: 9pt; 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: 3pt; 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
$13.42&nbsp;per share (based on an offering price of $13.50 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 $13.50&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 $0.14, and the dilution to new investors by
$(0.14), 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: 9pt; 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: 3pt; 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" style="font-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, including the stockholders that will acquire
shares pursuant to the directed share program, 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.
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
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 35,867,330&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 4,549,162 &nbsp;shares of our
common stock will be outstanding. We have entered into
agreements with the holders of approximately
35,867,330&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" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; 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" 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;
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 62.9% of our common stock as of July 31, 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
7,736,702&nbsp;shares of our common stock. We will also pay to
affiliates of Credit Suisse Securities (USA)&nbsp;LLC
$98.0&nbsp;million from the net proceeds of this offering, the
concurrent private placement, borrowings under our new term loan
and cash from our existing cash and cash equivalents balance 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 September&nbsp;26, 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" style="font-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 3,295,516&nbsp;shares (or 4,962,183&nbsp;shares
if the underwriters exercise their over-allotment option in
full) in this offering and will receive aggregate sale proceeds
of $41.4&nbsp;million, or $62.3&nbsp;million if the underwriters
exercise their over-allotment option in full (in each case,
based on an offering price of $13.50&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 39.9% of our common stock (or approximately 35.9%
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" style="font-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" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B><I>Approximately 35.0% 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: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon completion of this offering, approximately
14,577,860&nbsp;shares of our common stock owned by affiliates
of Credit Suisse Securities (USA)&nbsp;LLC, representing
approximately 35.0% of our common stock
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
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" style="font-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 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 32.5% 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>

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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 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 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" style="font-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>

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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>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">30

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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 $13.50&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 $74.7&nbsp;million. We intend to
use these proceeds, together with the estimated proceeds of
$1.4&nbsp;million from the concurrent private placement (based
on an offering price of $13.50&nbsp;per share, the midpoint of
the estimated price range shown on the cover page of this
prospectus), estimated borrowings of $15.0&nbsp;million under
our new term loan and approximately $10.7&nbsp;million of our
existing cash and cash equivalents, to pay $101.8&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 $99.8&nbsp;million (based on an
offering price of $13.50&nbsp;per share, the midpoint of the
estimated price range shown on the cover page of this
prospectus) of the estimated net proceeds to us from the
offering, the concurrent private placement, borrowings under our
new term loan and cash from our existing cash and cash
equivalents balance 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 September&nbsp;26, 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 $13.50&nbsp;per share would increase
(decrease) the net proceeds to us from this offering and the
concurrent private placement by $5.8&nbsp;million and would
decrease the amount of borrowings on the closing date under our
new term loan by $5.8&nbsp;million (increase the amount of
borrowings on the closing date under our new term loan by
$5.0&nbsp;million and decrease cash and cash equivalents by
$0.8&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;">31

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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" style="font-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,
term loan and capitalization as of June&nbsp;30, 2006:
</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 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 June&nbsp;30, 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="6%"></TD>
    <TD width="1%"></TD>
    <TD width="93%"></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 16,019,480&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 amount payable totaling $101.8&nbsp;million reflecting 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
    September&nbsp;26,&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 $15.0&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;</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 use of $10.7&nbsp;million of our existing cash and cash
    equivalents 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
    102,640&nbsp;shares of our common stock at the public offering
    price and the application of the proceeds therefrom. Assuming an
    offering price of $13.50&nbsp;per share (the midpoint of the
    estimated price range shown on the cover page of this
    prospectus) we will raise approximately $1.4&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="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
    6,148,148&nbsp;shares of common stock in this offering at an
    assumed public offering price of $13.50&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 June&nbsp;30, 2006.</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;
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>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">32

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<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="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>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>As of June&nbsp;30, 2006</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&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="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro Forma As</B></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>Actual</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pro Forma</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Adjusted(1)</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>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>(In thousands, except share and</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>per share amounts)</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">
    Cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>53,501</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>42,785</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>42,785</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">
    Term loan</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>15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>15,000</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 colspan="4" align="left" valign="top">
    Cumulative redeemable convertible preferred stock,
    $0.01&nbsp;par value per share, authorized in Series&nbsp;A, B,
    C, D and E: 7,000,000 total shares authorized, 3,166,254 total
    shares issued and outstanding, actual; no shares authorized,
    issued or outstanding, pro forma or pro forma as adjusted</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>100,579</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>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Stockholders&#146; equity (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>
    <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 valign="bottom" bgcolor="#cceeff">
    <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;
    50,000,000&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>
    <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,
    60,425,000&nbsp;shares authorized, 19,380,760&nbsp;shares issued
    and outstanding, actual; 60,425,000&nbsp;shares authorized,
    35,502,880 shares issued and outstanding, pro forma;
    250,000,000&nbsp;shares authorized, 41,651,028 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>194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>355</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>417</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">
    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>94,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>167,633</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>(165,109</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(165,109</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(165,109</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">
    Accumulated other comprehensive income</DIV>
    </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>200</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>
</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>(70,363</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(70,190</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,141</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">$</TD>
    <TD align="right" valign="bottom" nowrap>30,216</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(70,190</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,141</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" 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
    $13.50&nbsp;per share would increase each of cash and cash
    equivalents, additional paid-in capital and total capitalization
    by $5.8&nbsp;million and would decrease both borrowings under
    our new term loan and total stockholders&#146; deficit by
    $5.8&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. A
    $1.00 decrease in the assumed initial public offering price of
    $13.50&nbsp;per share would decrease cash and cash equivalents
    by $0.8&nbsp;million, additional paid-in capital and total
    capitalization by $5.8&nbsp;million and would increase assumed
    borrowings under our new term loan by $5.0&nbsp;million and
    total stockholders&#146; deficit by $5.8&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>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">33

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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: 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 valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    352,219&nbsp;shares of common stock available for issuance under
    our 1996 Stock Option Plan, including 7,700,801&nbsp;shares of
    common stock issuable upon exercise of outstanding stock options
    as of June&nbsp;30, 2006 at a weighted average exercise price of
    $5.76&nbsp;per share; 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">
    4,000,000&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;">34

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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='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" style="font-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 June&nbsp;30, 2006
was $(70.2)&nbsp;million, or approximately $(1.98)&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 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 conversion of all outstanding shares of our preferred stock
    into a total of 16,019,480&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 amount payable totaling $101.8&nbsp;million reflecting 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
    September&nbsp;26,&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 $15.0&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;</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 use of $10.7&nbsp;million of our existing cash and cash
    equivalents 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
    102,640&nbsp;shares of our common stock at the public offering
    price and the application of the proceeds therefrom. Assuming an
    offering price of $13.50&nbsp;per share (the midpoint of the
    estimated price range shown on the cover page of this
    prospectus) we will raise approximately $1.4&nbsp;million in
    proceeds from 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; ">&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 6,148,148&nbsp;shares of
common stock in this offering and 102,640&nbsp;shares of common
stock in the concurrent private placement at an assumed public
offering price of $13.50&nbsp;per share (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 June&nbsp;30, 2006 would have been approximately
$3.1&nbsp;million, or $0.08&nbsp;per share. This represents an
immediate increase in pro forma as adjusted net tangible book
value of $2.06&nbsp;per share to existing stockholders and an
immediate dilution of $13.42&nbsp;per share to new investors.
The following table illustrates this per share dilution:
</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="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 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 align="left" valign="top">&nbsp;</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>13.50</TD>
    <TD>&nbsp;</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 June&nbsp;30,
    2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top" nowrap>(1.98</TD>
    <TD align="left" valign="top" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" 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">
    Increase per share attributable to new investors</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" 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">&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 align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" 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">&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">
    Dilution per share to new investors</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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>13.42</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" style="font-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 $13.50&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 $0.14, and the dilution to new investors by $(0.14), 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;">35

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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; 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 June&nbsp;30, 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. The table assumes an initial public offering
price of $13.50&nbsp;per share.
</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="37%">&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="6%">&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="6%">&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>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>29,485,830</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>82.7</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>105,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3.58</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>6,148,148</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>83,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.50</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>35,633,978</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">$</TD>
    <TD align="right" valign="bottom" nowrap>188,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5.29</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 valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    352,219&nbsp;shares of common stock available for issuance under
    our 1996 Stock Option Plan, including 7,700,801&nbsp;shares of
    common stock issuable upon exercise of outstanding stock options
    as of June&nbsp;30, 2006 at a weighted average exercise price of
    $5.76&nbsp;per share; 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">
    4,000,000&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;">36

<!-- 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" style="font-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.
We derived the statement of operations data for each of the
three months ended June&nbsp;30, 2005 and 2006 and the balance
sheet data as of June&nbsp;30, 2006 from our unaudited
consolidated interim financial statements that are included
elsewhere in this prospectus. We derived the balance sheet data
as of June&nbsp;30, 2005 from our unaudited consolidated interim
financial statements that are not included in this prospectus.
In our opinion, the unaudited consolidated interim financial
statements have been prepared on the same basis as the audited
consolidated financial statements and include all adjustments,
consisting of normal recurring adjustments, that management
considers necessary for a fair presentation of the financial
position and results of operations for these periods. The
results for any interim period are not necessarily indicative of
the results that may be expected for any other interim period or
for the full fiscal year, and the historical results set forth
below do not necessarily indicate results expected for any
future period.
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">37

<!-- 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: 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="28%">&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="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 colspan="4">&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="6" align="center" nowrap><B>For the</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="19">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Three Months Ended</B></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>For the Year Ended March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>June&nbsp;30,</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>
    <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="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>
    <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>
    <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="26" 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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>62,422</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>18,788</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>
    <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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,788</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,660</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,734</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>
    <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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33,522</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>337</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>272</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,683</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,513</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>
    <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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,785</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,737</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,853</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,307</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,338</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,418</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,653</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>497</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>
    <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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(552</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,862</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(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>&#151;</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">
    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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>524</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(381</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,386</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(45</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>

</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(365</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,341</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,411</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,411</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>

</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">$</TD>
    <TD align="right" valign="bottom" nowrap>5,095</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1,776</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,930</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>
    <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(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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>(1.96</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1.20</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.93</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.28</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.09</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.07</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>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>(1.96</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1.20</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.93</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.28</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.09</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.06</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>18,112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,601</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,807</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,039</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>
    <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>18,112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,601</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,807</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,110</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>
    <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>

<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="34%">&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="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 colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>As of March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>As of June&nbsp;30,</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>
    <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>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>
    <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>
    <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>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>48,039</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>29,879</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>53,501</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,243</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>50,389</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>78,060</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,919</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100,579</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(82,736</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(70,363</TD>
    <TD align="left" valign="bottom" nowrap>)</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">
    See page&nbsp;<FONT style="white-space: nowrap">F-12</FONT> in
    the consolidated financial statements for a reconciliation of
    the basic and diluted earnings per share calculation.</TD>
</TR>

</TABLE>

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<A name='109'></A>
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<!-- link1 "MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" -->

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<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>

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<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>

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    <B><I>History and Background</I></B></TD>
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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 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>

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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>

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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 (released
June&nbsp;2006). In addition to QiNetix Galaxy, the subsequent
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release of our other QiNetix software has substantially
increased our addressable market. As of June&nbsp;30, 2006, we
had licensed our software applications to
approximately&nbsp;4,300 registered customers.
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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 and the three
months ended June&nbsp;30, 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>

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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 twelve&nbsp;months prior to the effective date of
obsolescence announcing continuation of full product support for
the first six months. We provide an additional six months of
extended assistance 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.
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    <B><I>Sources of Revenues</I></B></TD>
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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 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, 57% of our total revenues for fiscal
2006 and 56% of our total revenues for the three months ended
June&nbsp;30, 2006. Software revenue generated through direct
and indirect distribution channels was approximately 38% and
62%, respectively, of total software revenue in fiscal 2005, was
approximately 32% and 68%, respectively, of total software
revenue in fiscal 2006 and was approximately 33% and 67%,
respectively, of total software revenue in the three months
ended June&nbsp;30, 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.
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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>

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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 throughout fiscal 2007, although
the size and timing of any
</DIV>

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particular software transaction is more difficult to forecast.
Such software transactions typically represent approximately 35%
of our total software revenue in any given period.
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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, 43% of
our total revenues for fiscal 2006 and 44% of our total revenues
for the three months ended June&nbsp;30, 2006. The gross margin
of our services revenue was 69.8% for fiscal 2005, 71.9% for
fiscal 2006 and 69.4% for the three months ended June&nbsp;30,
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.
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    <B><I>Description of Costs and Expenses</I></B></TD>
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Our cost of revenues is as follows:
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    <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: 3.0pt">&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: 3.0pt">&nbsp;</TD>
</TR>

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    <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>

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Our operating expenses are as follows:
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    <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>

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

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    <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>

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

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    <TD style="font-size: 3.0pt">&nbsp;</TD>
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    <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>
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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>
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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
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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 require subjective and
complex judgments, which could potentially have a material
effect on our reported financial condition or results of
operations.
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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>

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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>

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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>

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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>

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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>

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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. In addition
to a signed purchase order, our consulting, assessment and
design services and installation services are generally
evidenced by a signed Statement of Work, which
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defines the specific scope of the services to be performed when
sold and performed on a stand-alone basis or included in
multiple-element arrangements. 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 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>

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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" style="font-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 changed
our customary business practice and began to require and utilize
a signed Statement of Work documenting the scope of our other
professional services offerings greater than $10,000 (excluding
training), in addition to a signed purchase order, when sold and
performed on a stand-alone basis or included in 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" style="font-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" style="font-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 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>Stock-Based Compensation</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;
Prior to April&nbsp;1, 2006, we accounted for our stock option
plan under the recognition and measurement provisions of APB
Opinion No.&nbsp;25, <I>Accounting for Stock Issued to
Employees</I>, and related Interpretations, as permitted by FASB
Statement No.&nbsp;123, (&#147;SFAS&nbsp;123&#148;),
<I>Accounting for Stock-Based Compensation</I>. Stock-based
employee compensation cost was recognized in the Statement of
Operations for the years ended March&nbsp;31, 2004, 2005 and
2006, to the extent stock options granted had an exercise price
that was
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">43

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
less than the fair value of the underlying common stock on the
date of grant. In Note&nbsp;2 of our consolidated financial
statements, we have presented the pro forma effect on net income
(loss)&nbsp;attributable to common stockholders as if we had
applied the fair value recognition of SFAS&nbsp;123.
</DIV>

<DIV align="left" style="font-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 April&nbsp;1, 2006, we adopted the fair value
recognition provisions of SFAS&nbsp;Statement
No.&nbsp;123(revised 2004), <I>Share-Based Payment</I>,
(&#147;SFAS&nbsp;123(R)&#148;) using the modified prospective
method and therefore we have not restated our financial results
for prior periods. Under this transition method, stock-based
compensation costs in the three months ended June&nbsp;30, 2006
includes the portion related to stock options vesting in the
period for (1)&nbsp;all options granted prior to, but not vested
as of April&nbsp;1, 2006, based on the grant date fair value in
accordance with the original provisions of SFAS&nbsp;123 and
(2)&nbsp;all options granted subsequent to April&nbsp;1, 2006,
based on the grant date fair value estimated in accordance with
SFAS&nbsp;123(R).
</DIV>

<DIV align="left" style="font-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 result of adopting SFAS&nbsp;123(R) on April&nbsp;1, 2006,
our income before income taxes and net income for the three
months ended June&nbsp;30, 2006 is $0.8&nbsp;million lower than
if we had continued to account for stock-based compensation
under APB Opinion No.&nbsp;25. We estimate that we will record
stock-based compensation expense of approximately
$5.6&nbsp;million in fiscal 2007 and $5.3&nbsp;million in fiscal
2008 under SFAS&nbsp;123(R) based on existing unvested options.
Our stock-based compensation expense will increase when
additional stock option grants are awarded.
</DIV>

<DIV align="left" style="font-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 adoption of SFAS&nbsp;123(R), we selected the Black-Scholes
option pricing model as the most appropriate model for
determining the estimated fair value for stock-based awards. The
fair value of stock option awards subsequent to April&nbsp;1,
2006 is amortized on a straight-line basis over the requisite
service period of the awards, which is generally the vesting
period. Expected volatility was calculated based on reported
data for a peer group of publicly traded companies for which
historical information was available. We will continue to use
peer group volatility information until our historical
volatility is relevant to measure expected volatility for future
option grants. The average expected life was determined
according to the &#147;SEC shortcut approach&#148; as described
in SAB&nbsp;107, <I>Disclosure about Fair Value of Financial
Instruments</I>, which is the mid-point between the vesting date
and the end of the contractual term. The risk-free interest rate
is determined by reference to U.S. Treasury yield curve rates
with a remaining term equal to the expected life assumed at the
date of grant. Forfeitures are estimated based on a historical
analysis of our actual stock option forfeitures. The assumptions
used in the Black-Scholes option-pricing model are 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="74%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="21%">&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>Three Months Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June 30, 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>
</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>
</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>55</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>4.95% - 5.04</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>6.25</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 following table presents the exercise price and fair value
per share for grants issued during fiscal 2006 and the three
months ended June&nbsp;30, 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="36%">&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="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>359,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2.42</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>461,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.66</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>800,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.48</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>374,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.64</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>334,350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.58</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>163,625</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.74</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    April&nbsp;20, 2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.70</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>1.28</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    May&nbsp;3, 2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>89,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.48</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">44

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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 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. 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" style="font-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" style="font-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
ranging from 20% to 25% based on the estimated timing of our
potential initial public offering. The risk-adjusted discount
rate was based on the inherent risk of a hypothetical investment
in our common stock. An appropriate rate of return required by a
hypothetical investor was determined based on: (1)&nbsp;well
established venture capital rates of return published in the
Practice Aid for firms engaged in bridge financing in
anticipation of a later IPO and (2)&nbsp;our calculated cost of
capital. Based on this data, we used a risk-adjusted discount
rate of 25% for the January 2005 valuation date and lowered such
a rate to 20% for the subsequent valuation dates based on the
decreased inherent risk of investing in our common stock as we
continued to develop our products and achieved increased levels
of profitability. 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. If
different discount rates had been used, the valuations would
have been different.
</DIV>

<DIV align="left" style="font-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. The
significant portion of the value derived under the income
approach is based upon the calculation of the terminal value,
which in this analysis is based on data from publicly traded
guideline companies. In addition, the income approach allows for
the full utilization of the our net operating loss carryforwards
as it is a forward looking model, as compared to the market
approach that focuses on historical results. Lastly, based on
our stage of development and our ability to generate profits
only recently, it is more likely that a potential investor in
our common stock would place the bulk of their emphasis on
future expectations rather than on historical performance. As
such, it is our opinion that the income approach provides a much
more meaningful indication of value and we have, therefore,
placed greater emphasis upon the conclusion as rendered by this
approach and relatively less weight upon the value determined by
the market approach. Accordingly, we have applied a weight of
80% to the income approach and a weight of 20% to the market
approach. If different weights were applied to the income and
market approach, the valuations would have been different.
</DIV>

<DIV align="left" style="font-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 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. Similar to the
&#147;public company&#148; scenario, a risk-adjusted discount
rate ranging from 20% to 25% was used based on the inherent risk
of an investment in CommVault. If different discount rates had
been used, the valuations would have been different.
</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;
Under the market approach, our estimated enterprise value was
developed based revenue multiples of comparable companies.
Specifically, a search was conducted for companies with a
similar Standard Industrial Classification code. This search
revealed numerous publicly-traded companies in this industry.
From this total population of over 500 guideline companies,
eight companies were selected as comparable companies for
inclusion in the valuation analysis based on scope and breadth
of product offerings, annual revenue, stage of development,
prospects for growth and risk profiles. Although each of the
comparable companies differ in some respects from us, they are
generally influenced by similar business and economic conditions
and are considered to offer alternative investment
opportunities. If different comparable companies were used, the
valuations would have been different.
</DIV>

<DIV align="left" style="font-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 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 of 35% assuming we remain a private company. We
have one significant restriction on the marketability of our
common stock related to the blocking rights of our
Series&nbsp;CC preferred stockholders if we were to conduct an
IPO that has an offering price of less than $6.26 per share, on
an as adjusted basis. In addition, there is also no guarantee of
future dividends being paid. After considering these factors, as
well as the results of a number of empirical studies, IRS
Revenue Ruling 77-287 involving the issue of discounts for lack
of marketability and certain other company specific factors
(such as the prospects for liquidity absent an IPO and the
estimated volatility of our common stock), a 35% discount for
lack of marketability was deemed appropriate to apply to the
common stock. If a different discount for lack of marketability
was used, the valuations would have been different.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Valuation models require the input of highly subjective
assumptions. Because our common stock has characteristics
significantly different from that of publicly traded common
stock 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 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;
The foregoing valuation methodologies are not the only valuation
methodologies available and will not be used to value our common
stock once this offering is complete. We cannot assure you of
any particular valuation of our stock. Accordingly, investors
are cautioned not to place undue reliance on the foregoing
valuation methodologies as an indicator of future stock prices.
</DIV>

<DIV align="left" style="font-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 conjunction with each of the factors noted below, the primary
factors contributing to the difference between the fair value of
our common stock as of each grant date shown above and the
mid-point of the estimated offering range of $13.50&nbsp;per
share 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">
    The continued execution of our business model which resulted in
    total revenues increasing 32% in fiscal 2006 compared to fiscal
    2005 and 52% in the three months ended June&nbsp;30, 2006
    compared to the three months ended June&nbsp;30, 2005. We have
    experienced such revenue growth in both the United States and in
    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">
    Software revenue generated through our original equipment
    manufacturer agreements increased approximately
    $8.5&nbsp;million, or 425%, in fiscal 2006 compared to fiscal
    2005 due 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.</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 achieved our fourth consecutive quarter of profitability for
    three months ended June&nbsp;30, 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">
    As of June&nbsp;30, 2006, we have licensed our software
    applications to approximately 4,300 registered customers
    representing an increase of approximately 50% compared to
    March&nbsp;31, 2005.</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 have continued to enhance our QiNetix software suite with the
    introduction of QiNetix Data Classification in 2005 and QiNetix
    ContinuousDataReplicator in 2006. In addition, we have released
    numerous enhancements to our existing QiNetix software
    applications.</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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<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 passage of time between grant dates, which led to the
    shifting of the time periods that such valuations are based upon.</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 probability weighting of being able to proceed with an IPO
    with an offering price of no less than $6.26 per share, on an as
    adjusted basis, which is the minimum offering price without
    being potentially blocked by the Series&nbsp;CC preferred
    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">
    In January 2006, we engaged investment bankers to initiate the
    process of an initial public offering and began drafting a
    registration statement.</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 reassessed fair value of our common stock underlying 359,750
options granted to employees on May&nbsp;5, 2005 was determined
to be $6.92&nbsp;per share. The increase in fair value as
compared to the January&nbsp;27, 2005 value was primarily due to
the following:
</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">
    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 style="font-size: 6.0pt">&nbsp;</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 style="font-size: 6.0pt">&nbsp;</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 style="font-size: 6.0pt">&nbsp;</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>

</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 reassessed fair value of our common stock underlying 461,375
options granted to employees on July&nbsp;29, 2005 was
determined to be $8.36&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 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">
    For the three months ended June&nbsp;30, 2005, revenues and
    earnings exceeded budget;</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 increased our earnings forecast for the remainder of fiscal
    2006;&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">
    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>

</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 reassessed fair value of our common stock underlying 800,000
options granted to employees on September&nbsp;19, 2005 was
determined to be $9.18&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" style="font-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 374,500
options granted to employees on November&nbsp;3, 2005 was
determined to be $10.34&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 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">
    For the three and six months ended September&nbsp;30, 2005,
    earnings exceeded our original budget and revised forecasts;</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">
    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 style="font-size: 6.0pt">&nbsp;</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>

</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;
The reassessed fair value of our common stock underlying 334,350
options granted to employees on January&nbsp;26, 2006 was
determined to be $11.08&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 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">
    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 style="font-size: 6.0pt">&nbsp;</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 style="font-size: 6.0pt">&nbsp;</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 style="font-size: 6.0pt">&nbsp;</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>

</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;
Despite holding an organizational meeting on January&nbsp;10,
2006, we only increased the initial public offering scenario
from 60% at November&nbsp;3, 2005 to 65% at January&nbsp;26,
2006 for two primary reasons. First, we needed to conduct an
initial public offering at an offering price of at least $6.26
per share otherwise it would potentially be blocked by the
Series&nbsp;CC preferred stockholders. There was no assurance as
of January&nbsp;26, 2006 that such an offering price could be
obtained. It was our belief that we first needed to achieve our
forecasted results for the quarter and fiscal year ending
March&nbsp;31, 2006 before we would be able to obtain such a
minimum price per share. Secondly, while we formally initiated
the offering process on January&nbsp;10, 2006, there was no
assurance that we would actually proceed with the actual
offering. We had also initiated an offering process once before
in early 2004, but subsequently decided to not proceed with an
actual 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;
The reassessed fair value of our common stock underlying 163,625
options granted to employees on March&nbsp;2, 2006 was
determined to be $12.84&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" style="font-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 150,000
options and 89,750 options granted to employees on
April&nbsp;20, 2006 and May&nbsp;3, 2006 was determined to be
$12.98 per share and $13.08 per share, respectively. The
increase in fair value as of April&nbsp;20, 2006 and May&nbsp;3,
2006 as compared to the March&nbsp;2, 2006 value was primarily
due to the following:
</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">
    We achieved our third quarter of consecutive profitability and
    completed our most profitable fiscal year for the year ended
    March&nbsp;31, 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">
    We continued to generate cash flows from operations
    significantly exceeding budgeted and prior year amounts.</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 maintained a 90% probability estimate for the initial public
offering scenario under the PWER method for the April&nbsp;20,
2006 and May&nbsp;3, 2006 common stock valuations.
</DIV>

<DIV align="left" style="font-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.
</DIV>

<DIV align="left" style="font-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 June&nbsp;30, 2006, there was approximately
$15.5&nbsp;million of unrecognized stock-based compensation
expense related to non-vested stock option awards that is
expected to be recognized over a weighted average period of
1.74&nbsp;years.
</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;
Based on the midpoint of the estimated initial public offering
price of $13.50&nbsp;per share, the intrinsic value of the
options outstanding as of June&nbsp;30, 2006, was
$59.6&nbsp;million, of which $33.7&nbsp;million related to
vested options and $25.9&nbsp;million related to unvested
options.
</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" style="font-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
June&nbsp;30, 2006, we had deferred tax assets of approximately
$46.3&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 June&nbsp;30, 2006, we maintained a valuation allowance equal
to the $46.3&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 and in the
three months ended June&nbsp;30, 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 June&nbsp;30,
2006. If our actual results differ from our estimates, our
provision for income taxes could be materially impacted.
</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>

<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:
</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="53%">&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="4%">&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="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>For the Three</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>For the Year Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Months 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>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>June&nbsp;30,</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>
    <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>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>
    <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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56</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>
    <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="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44</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>
    <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 align="left" valign="bottom" nowrap>%</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>
    <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>
    <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>
    <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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>
    <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>1</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>
    <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>13</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>
    <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>
    <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>
    <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>
    <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>

<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 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>Three months ended June&nbsp;30, 2006 compared to three
    months ended June&nbsp;30, 2005</I></B></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></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 $11.4&nbsp;million, or 52%, from
$22.1&nbsp;million in the three months ended June&nbsp;30, 2005
to $33.5&nbsp;million in the three months ended June&nbsp;30,
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;
<I>Software Revenue. </I>Software revenue increased
$6.3&nbsp;million, or 51%, from $12.5&nbsp;million in three
months ended June&nbsp;30, 2005 to $18.8&nbsp;million in the
three months ended June&nbsp;30, 2006. Software revenue
represented 56% of our total revenues in both the three months
ended June 30, 2005 and 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 resellers and our direct
sales force contributed $3.5&nbsp;million and $1.2&nbsp;million,
respectively, to our overall increase in software revenue.
Furthermore, revenue through our original equipment
manufacturers contributed $1.6&nbsp;million to our overall
increase in software revenue primarily due to higher revenue
from our arrangements with Dell and Hitachi Data Systems. The
number of software revenue transactions greater than
$0.1&nbsp;million increased 48% in the three months ended
June&nbsp;30, 2006 and contributed approximately
$2.3&nbsp;million to our overall increase in 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>Services Revenue. </I>Services revenue increased
$5.1&nbsp;million, or 53%, from $9.7&nbsp;million in the three
months ended June&nbsp;30, 2005 to $14.7&nbsp;million in the
three months ended June&nbsp;30, 2006. Services revenue
represented 44% of our total revenues in both the three months
ended June&nbsp;30, 2005 and 2006. The increase in services
revenue was primarily due to a $4.1&nbsp;million increase in
revenue from customer support agreements as a result of software
sales to new customers and renewal agreements with our installed
software base.
</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 $1.8&nbsp;million, or 58%, from
$3.0&nbsp;million in the three months ended June&nbsp;30, 2005
to $4.8&nbsp;million in the three months ended June&nbsp;30,
2006. Total cost of revenues represented 14% of our total
revenues in both the three months ended June&nbsp;30, 2005 and
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;
<I>Cost of Software Revenue. </I>Cost of software revenue was
$0.3&nbsp;million in the three months ended June&nbsp;30, 2005
and 2006. Cost of software revenue represented 3% of our total
software revenue in the three months ended June&nbsp;30, 2005
and 1% of our total software revenue in the three months ended
June&nbsp;30, 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;
<I>Cost of Services Revenue. </I>Cost of services revenue
increased $1.8&nbsp;million, or 68%, from $2.7&nbsp;million in
the three months ended June&nbsp;30, 2005 to $4.5&nbsp;million
in the three months ended June&nbsp;30, 2006. Cost of services
revenue represented 28% of our services revenue in the three
months ended June&nbsp;30, 2005 and 31% of our services revenue
in the three months ended June&nbsp;30, 2006. The increase in
cost of services revenue was primarily the result of higher
employee compensation and travel expenses totaling approximately
$1.0&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 $3.5&nbsp;million, or 29%, from $11.9&nbsp;million in
the three months ended June&nbsp;30, 2005 to $15.3&nbsp;million
in the three months ended June&nbsp;30, 2006. The increase was
primarily due to a $1.4&nbsp;million increase in employee
compensation and $0.5&nbsp;million increase in travel and
entertainment expenses, both of which were mainly due to
increased headcount. In addition, stock-based compensation
expense increased $0.6&nbsp;million due to the adoption of
SFAS&nbsp;123(R).
</DIV>

<DIV align="left" style="font-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 $1.1&nbsp;million, or 25%, from
$4.3&nbsp;million in the three months ended June&nbsp;30, 2005
to $5.4&nbsp;million in the three months ended June&nbsp;30,
2006. The increase was primarily due to $0.5&nbsp;million of
higher employee compensation resulting from higher headcount and
a $0.2&nbsp;million increase in stock-based compensation due to
the adoption of SFAS&nbsp;123(R).
</DIV>

<DIV align="left" style="font-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 $1.6&nbsp;million, or 51%, from
$3.1&nbsp;million in the three months ended June&nbsp;30, 2005
to $4.7&nbsp;million in the three months ended June&nbsp;30,
2006. The increase was primarily due to a $0.6&nbsp;million
increase in stock-based compensation
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
expense due to the adoption of SFAS&nbsp;123(R), a
$0.5&nbsp;million increase in employee compensation resulting
from higher headcount and $0.3&nbsp;million in higher legal
expenses due to an anticipated litigation settlement.
</DIV>

<DIV align="left" style="font-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 $0.1&nbsp;million, or 30%, from $0.4&nbsp;million in
the three months ended June&nbsp;30, 2005 to $0.5&nbsp;million
in the three months ended June&nbsp;30, 2006. This reflects
higher depreciation associated with increased capital
expenditures primarily for product development and other
computer-related equipment.
</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>
    <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 $0.3&nbsp;million, from
$0.2&nbsp;million in the three months ended June&nbsp;30, 2005
to $0.5&nbsp;million in the three months ended June&nbsp;30,
2006. The increase was due to higher interest rates and higher
cash balances in our deposit accounts.
</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>Fiscal year ended March&nbsp;31, 2006 compared to fiscal
    year ended March&nbsp;31, 2005</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 $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" style="font-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" style="font-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 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 $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" style="font-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" style="font-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>

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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="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 $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" style="font-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" style="font-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" style="font-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 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 $0.9&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 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>
    <I>Income Tax (Expense) Benefit</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;
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>

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

<TR valign="top">
    <TD></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" style="font-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
$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" style="font-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
</DIV>

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

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<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>

<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" style="font-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>

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<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" style="font-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 June&nbsp;30, 2006, we had
$53.5&nbsp;million of cash and cash equivalents. The cumulative
amount of preferred equity financing from inception to date is
$141.2&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 from inception 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" style="font-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 $3.8&nbsp;million,
$25.9&nbsp;million and $6.7&nbsp;million in fiscal 2005 and 2006
and the three months ended June&nbsp;30, 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 the
three months ended June 30, 2006, cash generated by operating
activities was primarily due to net income adjusted for the
impact of noncash charges and a decrease in accounts receivable.
</DIV>

<DIV align="left" style="font-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 $1.9&nbsp;million,
$2.8&nbsp;million and $0.9&nbsp;million in fiscal 2005 and 2006
and the three months ended June&nbsp;30, 2006, respectively.
Cash used in investing activities in each period was due to
purchases of property and equipment.
</DIV>

<DIV align="left" style="font-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 minimal
in fiscal 2005 and 2006 and was ($0.1) million in the three
months ended June&nbsp;30, 2006. In fiscal 2006 and the three
months ended June 30, 2006 proceeds received from the issuance
of common stock were primarily offset by cash paid related to
deferred offering 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;
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" style="font-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 $4.1&nbsp;million from
$24.1&nbsp;million as of March&nbsp;31, 2006 to
$28.2&nbsp;million as of June&nbsp;30, 2006, primarily due to an
increase of $5.5&nbsp;million in cash and cash equivalents,
partially offset by a $0.7&nbsp;million decrease in accounts
receivable in the three months ended June&nbsp;30, 2006. The
increase in cash and cash equivalents is primarily due to net
income generated during the period and the decrease in the
accounts receivable balance due to strong collection efforts.
</DIV>

<DIV align="left" style="font-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 $20.0&nbsp;million term loan with Silicon
Valley Bank pursuant to which we intend to borrow
$15.0&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,
subject to acceleration, at any time, at the discretion of the
lender. 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
$3.6&nbsp;million in fiscal 2007, $7.5&nbsp;million in fiscal
2008 and $3.9&nbsp;million in fiscal 2009. The term loan will
mature in fiscal 2009.
</DIV>

<DIV align="left" style="font-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 16,019,480&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>

<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>30.6</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>141.2</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" style="font-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" style="font-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 6,332,508&nbsp;shares of
our common stock and will also have the right to receive
$101.8&nbsp;million consisting&nbsp;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">
    $14.85&nbsp;per share, or $47.0&nbsp;million in the
    aggregate;&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">
    accumulated and unpaid dividends of $1.788&nbsp;per share per
    year since the date the shares of preferred stock were issued,
    or $54.8&nbsp;million in the aggregate, assuming that this
    offering closes on September 26, 2006.</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 intend to use the net proceeds from the sale of shares by us
of $74.7&nbsp;million (based on an offering price of
$13.50&nbsp;per share, the midpoint of the estimated price range
shown on the cover of this prospectus), together with proceeds
of $1.4&nbsp;million from the concurrent private placement
(based on an offering price of $13.50&nbsp;per share, the
midpoint of the estimated price range shown on the cover of this
prospectus), borrowings of $15.0&nbsp;million under our new term
loan and approximately $10.7&nbsp;million of our existing cash
and cash equivalents, to pay $101.8&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;
A $1.00 increase (decrease) in the assumed initial public
offering price of $13.50&nbsp;per share would increase
(decrease) the net proceeds to us from this offering and the
concurrent private placement by $5.8&nbsp;million and would
decrease the amount of borrowings on the closing date under our
new term loan by $5.8&nbsp;million (increase the amount of
borrowings on the closing date under our new term loan by
$5.0&nbsp;million and decrease cash and cash equivalents by
$0.8&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;
The outstanding shares of Series&nbsp;AA, BB and CC preferred
stock will be converted into a total of 9,686,972&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" style="font-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
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">55

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
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 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" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; 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" style="font-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
June&nbsp;30, 2006 with regards to payments due under operating
leases and an equipment term loan (dollars in thousands):
</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="41%">&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="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="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">$</TD>
    <TD align="right" valign="bottom" nowrap>5,833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,186</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>994</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>96</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>41</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" 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 borrow
    $15.0&nbsp;million under our new $20.0&nbsp;million term loan on
    or immediately prior to the closing date of this offering. We
    estimate the payments under this term loan will be
    $3.6&nbsp;million in fiscal 2007, $7.5&nbsp;million in fiscal
    2008 and $3.9&nbsp;million in fiscal 2009, subject to
    acceleration, at any time, at the discretion of the lender. 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 in the assumed initial public offering price of
$13.50&nbsp;per share would decrease our borrowings under our
new term loan on the closing date by $5.8&nbsp;million and would
decrease the payments under this term loan in fiscal 2007 by
$1.4&nbsp;million, in fiscal 2008 by $2.9&nbsp;million, and in
fiscal 2009 by $1.5&nbsp;million, assuming the number of shares
offered by us, as set forth on the cover page of this
prospectus, remains the same. A $1.00 decrease in the assumed
initial public offering price of $13.50&nbsp;per share would
increase our borrowings under our new term loan on the closing
date by $5.0&nbsp;million and would increase the payments under
this term loan in fiscal 2007 by $1.2&nbsp;million, in fiscal
2008 by $2.5&nbsp;million, and in fiscal 2009 by
$1.3&nbsp;million, 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" style="font-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" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Off-Balance Sheet Arrangements</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 June&nbsp;30, 2006, we had no off-balance sheet
arrangements.
</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>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
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
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" 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" style="font-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 June 2006, the Financial Accounting Standards Board
(&#147;FASB&#148;) issued FASB Interpretation No.&nbsp;48,
&#147;Accounting for Uncertainty in Income Taxes&nbsp;&#151; an
interpretation of FASB Statement No.&nbsp;109&#148;
(&#147;FIN&nbsp;48&#148;). FIN&nbsp;48 clarifies the accounting
for uncertainty in income taxes recognized in financial
statements in accordance with FASB Statement No.&nbsp;109,
&#147;Accounting for Income Taxes.&#148; FIN&nbsp;48 prescribes
a recognition threshold and measurement attribute for the
financial statement recognition and measurement of a tax
position taken or expected to be taken in a tax return.
FIN&nbsp;48 also provides guidance on derecognition,
classification, interest and penalties, accounting in interim
periods, disclosure, and transition. We are required to adopt
the provisions of FIN&nbsp;48 during the first fiscal year
beginning after December&nbsp;15, 2006. We are currently
evaluating the impact of FIN&nbsp;48 on our consolidated results
of operations and financial position.
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Quantitative and Qualitative Disclosures About Market Risk</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>Interest Rate 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;
As of June&nbsp;30, 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>

<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>Foreign Currency Risk</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 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% and 27% of our sales were outside the United
States in fiscal 2006 and the three months ended June&nbsp;30,
2006, respectively. 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>

<DIV align="left" style="font-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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<A name='110'></A>
</DIV>

<!-- link1 "BUSINESS" -->

<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>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>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>

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

<DIV align="left" style="font-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>

<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">
    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>

</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 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 June&nbsp;30, 2006, we had licensed our data management
software to approximately&nbsp;4,300 registered 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;
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>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>

<DIV align="left" style="font-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" style="font-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>

<DIV align="left" style="font-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 (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" style="font-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>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">59

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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>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>

<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>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>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">60

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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>

<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>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>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">61

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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">
    <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>

<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 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>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">62

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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>

<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 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 Galaxy Backup and Recovery</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 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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    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>QiNetix ContinuousDataReplicator</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 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>

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    <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>

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    <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>

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    <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>

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    <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>

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

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    <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 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>

</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="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="96%"></TD>
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    <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>

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<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" style="font-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" style="font-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" style="font-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
June&nbsp;30, 2006, we had licensed our software applications to
approximately&nbsp;4,300 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>

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Sales through our original equipment manufacturer agreement with
Dell accounted for approximately 7% of our total revenues for
fiscal 2006 and the three months ended June&nbsp;30, 2006. Sales
through our reseller agreement with Dell accounted for
approximately 11% of our total revenues for fiscal 2006 and 15%
of our total revenues for the three months ended June&nbsp;30,
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 8% and
11% of our total revenues for fiscal 2006 and the three months
ended June&nbsp;30, 2006, respectively.
</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>Technology</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;
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: 3pt; 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="1%"></TD>
    <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="96%"></TD>
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    <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: 3.0pt">&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: 3.0pt">&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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<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>Sales and Marketing</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 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
June&nbsp;30, 2006, we had 156&nbsp;employees in sales and
marketing. These employees are located in the Americas, Europe,
Australia and Asia.
</DIV>

<DIV align="left" style="font-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" style="font-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 June&nbsp;30, 2006, we
had 186&nbsp;employees in our research and development group, of
which 33 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 $5.4&nbsp;million
on research and development activities in the three months ended
June&nbsp;30, 2006, $19.3&nbsp;million in fiscal 2006,
$17.2&nbsp;million in fiscal 2005 and $16.2&nbsp;million in
fiscal 2004.
</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>

<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">
    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
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
is also a significant competitive factor in our industry.
Although many of our competitors have greater 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" style="font-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 June&nbsp;30, 2006, we had nine issued patents and 66
pending patent applications in the United&nbsp;States and 13
issued patents and 55 pending patent applications in foreign
countries. As of June&nbsp;30, 2006, we also had 11&nbsp;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
June&nbsp;30, 2006, we had four 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" style="font-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>

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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;
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 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" style="font-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 June&nbsp;30, 2006, we had 642&nbsp;employees worldwide,
including 156 in sales and marketing, 186 in research and
development, 87 in general administration and 213 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" 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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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<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 August&nbsp;30, 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="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>53</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>39</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>41</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>49</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>53</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>38</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" 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>

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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>

<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" style="font-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" style="font-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 Avaya Inc. and Interwoven, 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>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 and as our lead director since May 2006.
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" style="font-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" style="font-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>

<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" style="font-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>

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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">
    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 6,088,000&nbsp;shares of our common stock and the
    right to receive $98.0&nbsp;million in cash upon the completion
    of the 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">
    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
    6,088,000&nbsp;shares of our common stock and the right to
    receive $98.0&nbsp;million in cash upon the completion of the
    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">
    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
    2,598,852&nbsp;shares of our common stock and the right to
    receive $41.9&nbsp;million in cash upon the completion of the
    offering.</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. Prior to
April&nbsp;1, 2006, 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" style="font-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 2006, we began to compensate non-employee directors for
their service on our board. Each non-employee director will
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 receive an additional annual retainer
of $24,000, $7,500 and $7,500, respectively. Our lead director
will receive an additional annual retainer of $7,500. Each
committee member will receive an additional annual retainer of
$5,000.
</DIV>

<DIV align="left" style="font-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 are
eligible to receive an initial option grant of
12,500&nbsp;shares upon their election. In addition,
non-employee directors will be eligible to receive annual option
grants of 7,500&nbsp;shares. Option grants to our non-employee
directors will vest quarterly 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>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">75

<!-- 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>Executive 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;
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>

<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="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="1%">&nbsp;</TD>
    <TD width="17%">&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="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>350,000</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>175,000</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>50,000</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>50,000</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>57,500</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>50,000</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" 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">
    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 style="font-size: 3.0pt">&nbsp;</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 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;">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;">
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;
Mr.&nbsp;Hammer has maintained his primary residence in the
state of Florida since he began serving as our Chairman,
President and Chief Executive Officer in 1998.
Mr.&nbsp;Hammer&#146;s position with us is his only full time
employment. Mr.&nbsp;Hammer generally spends his time working
for us in our office in Oceanport, New Jersey or traveling on
business for us. He is generally in Oceanport when not traveling
on business. As part of his annual compensation, we pay costs
associated with Mr.&nbsp;Hammer&#146;s travel between his
residence in Florida and our headquarters in Oceanport, New
Jersey and we also lease an apartment for Mr.&nbsp;Hammer&#146;s
use in New Jersey. See &#147;Executive Compensation&#148; for
more information. The members of the Compensation Committee
consider these costs in reviewing the annual compensation of
Mr.&nbsp;Hammer. We do not believe that Mr.&nbsp;Hammer&#146;s
Florida residency has had a negative impact on the quality of
his service to us or on his ability to meet his obligations as
Chairman, President and Chief Executive Officer in the past and
we do not anticipate that his Florida residency will have any
negative impact on us 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;
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" style="font-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
</DIV>

<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>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
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" style="font-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" 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: 9.0pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="17%">&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="9%">&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="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="6%">&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: 7.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Individual Grants</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="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
</TR>

<TR style="font-size: 7.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="15">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Potential Realizable Value at Assumed</B></TD><TD></TD>
</TR>

<TR style="font-size: 7.0pt;">
    <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>Percent of Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fair</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Annual Rates of Stock Price Appreciation for</B></TD><TD></TD>
</TR>

<TR style="font-size: 7.0pt;">
    <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>Options Granted</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>Value per</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Option Term(2)</B></TD><TD></TD>
</TR>

<TR style="font-size: 7.0pt;">
    <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>to 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>Common</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Expiration</B></TD><TD></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: 7.0pt;">
    <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>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>0%</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>
    <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>350,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.04</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>09/19/2015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,568,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,588,638</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,688,695</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>175,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>09/19/2015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>784,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,794,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,344,347</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>50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>09/19/2015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>224,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>512,663</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>955,528</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>25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>07/29/2015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>91,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>222,939</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>424,592</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <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>25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>09/19/2015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>112,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>256,331</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>477,764</TD>
    <TD>&nbsp;</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>25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>07/29/2015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>91,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>222,939</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>424,592</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>32,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>09/19/2015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>145,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>333,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>621,093</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>50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>09/19/2015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>224,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>512,663</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>955,528</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
    2,493,600&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 0%, 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 and his option grant
    was subsequently forfeited.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">78

<!-- 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.
</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="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="6%">&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="9%">&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="9%">&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="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, 2006</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>at March&nbsp;31, 2006(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>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>895,313</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>629,688</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,955,469</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,287,031</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>&#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>202,188</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>217,813</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,701,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,936,094</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>&#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>127,813</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62,188</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>999,594</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>522,406</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>&#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>155,469</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69,532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,305,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>609,143</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>&#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>101,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>125,625</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>840,875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,055,125</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>125,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>835,000</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>

</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
    $13.50&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" style="font-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 11,705,000&nbsp;shares of common
stock for issuance under the 1996 Stock Option Plan. As of
March&nbsp;31, 2006, options to purchase 7,586,847&nbsp;shares
of common stock were outstanding at a weighted average exercise
price of $5.56&nbsp;per share, 3,618,741&nbsp;shares had been
issued upon the exercise of outstanding options and
499,413&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" style="font-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 will be adjusted in the event
of any dividend or other distribution, recapitalization,
reclassification, stock
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">79

<!-- 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;">
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 (the &#147;LTIP
Plan&#148;), 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 under the LTIP Plan is 4,000,000.
On each April&nbsp;1, the number of shares available for
issuance under the LTIP Plan is increased, if applicable, such
that the total number of shares available for awards under the
LTIP Plan as of any April&nbsp;1 is equal to 5% of the number of
outstanding shares of our common stock on that April&nbsp;1. The
maximum number of shares that may be subject to incentive stock
options shall be 25,000,000 over the life of the LTIP Plan. The
maximum number of shares that may be subject to options and
stock appreciation rights granted to any one individual shall be
25,000,000 over the life of the LTIP Plan. The maximum number of
shares that may be subject to stock unit awards, performance
share awards, restricted stock awards or restricted unit awards
to any one individual that are intended to be performance based
within the meaning of Section&nbsp;162(m) of the Internal
Revenue Code shall be 25,000,000 over the life of the LTIP Plan
(or $1,000,000 during any calendar year, if settled in cash.)
The number of shares of common stock authorized for issuance
under the LTIP Plan will be adjusted in the event of any
dividend or other distribution, recapitalization,
reclassification, stock 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.
</DIV>

<DIV align="left" style="font-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 LTIP Plan. The LTIP
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 LTIP
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 LTIP 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
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">80

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
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 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 the LTIP Plan, our compensation committee may grant common
stock to participants. In the discretion of the committee, stock
issued pursuant to the LTIP Plan may be subject to vesting or
other restrictions. Participants may receive dividends relating
to their shares issued pursuant to the LTIP 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 LTIP 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 LTIP 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 102,640&nbsp;shares of our common stock at the
closing of this offering to Greg Reyes, Reyes Family Trust, Van
Wagoner Capital Partners, L.P. and Van Wagoner Crossover Fund,
L.P., 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. On August&nbsp;28, 2006, we and the holders
of more than two-thirds of the outstanding shares of our
Series&nbsp;CC preferred stock entered into a waiver agreement
pursuant to which the preemptive rights of all holders of our
Series CC preferred stock were eliminated in connection with
this offering. In lieu of such preemptive rights, the
underwriters are offering holders of shares of Series&nbsp;CC
preferred stock the opportunity to purchase the number of shares
of common stock in the directed share program equal to the
number of shares they would have been entitled to purchase
pursuant to their preemptive rights. 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.
All holders participating in the concurrent private placement
could exercise their preemptive right only for the full amount
of such right. 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" style="font-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>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">82

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<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 July&nbsp;31, 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 16,019,480&nbsp;shares of common stock upon the
closing of this offering. Percentage of beneficial ownership
before the offering is based on 19,380,760&nbsp;shares of common
stock outstanding as of July&nbsp;31,&nbsp;2006 (on an
as-converted basis). Percentage of beneficial ownership after
the offering is based on 41,651,028&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="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="10%">&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="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="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>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,567,839</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>3,567,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17.4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.4%</TD>
    <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>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>525,000</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>525,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.7</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.3%</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(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>354,377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>291,877</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.8</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <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>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>167,969</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>167,969</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">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</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(5)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>120,000</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>120,000</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">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Anand Prahlad(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>180,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>170,300</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">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>126,762</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>116,762</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">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Thomas Barry(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65,684</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>65,684</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">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72,563</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>72,563</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">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Armando Geday(10)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72,563</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>72,563</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">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Keith Geeslin(11)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,688</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>4,688</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">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <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>&#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>*</TD>
    <TD>&nbsp;</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 align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    F. Robert Kurimsky(12)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>72,563</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>72,563</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">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

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

<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>11,406</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>11,406</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">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</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>&#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>*</TD>
    <TD>&nbsp;</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 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>765,377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>389,525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>375,852</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.8</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</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>1,127,926</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>1,127,926</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.7%</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">83

<!-- 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="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="10%">&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="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="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>201,416</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>201,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</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>80,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>27,505</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53,061</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">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</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>511,502</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>127,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>384,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.6</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</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>15,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,297</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,485</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">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</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>1,477,721</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>215,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,262,671</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.0%</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>2,741,683</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>398,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,342,692</TD>
    <TD>&nbsp;</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>5.6%</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>2,200,797</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>320,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,880,519</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.9</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.5%</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>5,599,395</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>814,868</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,784,527</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26.4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.5%</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>146,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>125,102</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">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</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>72,353</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>72,353</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">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</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>3,052,133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>763,033</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,289,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.5%</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>1,566,741</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>1,566,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.8%</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>35,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,851</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,552</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">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</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>6,175</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>6,175</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">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</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>2,495,297</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>623,824</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,871,473</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.3</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.5%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    EMC Corporation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,156,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>572,917</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>583,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.6</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.4%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Microsoft Corporation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,357,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>550,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>807,223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.9%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    The Estate of Scott Mercer</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>125,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>80,000</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">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <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>5,341,714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>82,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,259,214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24.8</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.0%</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 967,188&nbsp;shares of common stock
    which are exercisable within 60&nbsp;days of July&nbsp;31, 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 245,000&nbsp;shares of common stock
    which are exercisable within 60&nbsp;days of July&nbsp;31, 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 134,375&nbsp;shares of common stock
    which are exercisable within 60&nbsp;days of July&nbsp;31, 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 167,969&nbsp;shares of common stock
    which are exercisable within 60&nbsp;days of July&nbsp;31, 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 120,000&nbsp;shares of common stock
    which are exercisable within 60&nbsp;days of July&nbsp;31, 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 114,000&nbsp;shares of common stock
    which are exercisable within 60&nbsp;days of July&nbsp;31, 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 90,562&nbsp;shares of common stock
    which are exercisable within 60&nbsp;days of July&nbsp;31, 2006.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">84

<!-- 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: 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>(8)&nbsp;</TD>
    <TD align="left">
    Includes options to acquire 2,188&nbsp;shares of common stock
    which are exercisable within 60&nbsp;days of July&nbsp;31, 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 72,563&nbsp;shares of common stock
    which are exercisable within 60&nbsp;days of July&nbsp;31, 2006.</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="95%"></TD>
</TR>

<TR valign="top">
    <TD>(10)&nbsp;</TD>
    <TD align="left">
    Includes options to acquire 72,563&nbsp;shares of common stock
    which are exercisable within 60&nbsp;days of July&nbsp;31, 2006.</TD>
</TR>

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

<TR valign="top">
    <TD>(11)&nbsp;</TD>
    <TD align="left">
    Includes options to acquire 4,688&nbsp;shares of common stock
    which are exercisable within 60&nbsp;days of July&nbsp;31, 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 72,563&nbsp;shares of common stock
    which are exercisable within 60&nbsp;days of July&nbsp;31, 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 11,406&nbsp;shares of common stock
    which are exercisable within 60&nbsp;days of July&nbsp;31, 2006.</TD>
</TR>

<TR>
    <TD style="font-size: 6.0pt">&nbsp;</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 style="font-size: 3.0pt">&nbsp;</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. 14,577,860 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 Sixth and Marquette,
    MAC&nbsp;<FONT style="white-space: nowrap">N9303-110,</FONT>
    Minneapolis, MN 55479. See &#147;Description of Capital
    Stock&nbsp;&#151; Voting Trust&nbsp;Agreement&#148; for more
    information regarding this agreement.</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 2,075,065&nbsp;shares of common
    stock which are exercisable within 60&nbsp;days of July&nbsp;31
    2006.</TD>
</TR>

</TABLE>

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<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 $5.8&nbsp;million. These stockholders, together
with other affiliates of Credit Suisse Securities
(USA)&nbsp;LLC, beneficially own approximately 56.3% 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 6.1% 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;
The underwriters have reserved 890,952 shares of our common
stock offered in this prospectus for sale to holders of shares
of our Series&nbsp;CC preferred stock, pursuant to a directed
share program, at a price per share equal to the price to the
public shown on the cover page of this prospectus. If the
holders of our Series&nbsp;CC preferred stock that are eligible
to participate in the directed share program purchase all of the
shares of common stock offered pursuant to the directed share
program, Putnam OTC and Emerging Growth Fund, Putnam World
Trust&nbsp;II&nbsp;&#151; Putnam Emerging Information Sciences
Fund, TH Lee, Putnam Investment Trust and Putnam Discovery
Growth Fund will beneficially own approximately 6.1% of our
common stock on an as-converted basis. DLJ Capital Corporation,
Sprout Capital IX, L.P., Sprout Entrepreneurs&#146; Fund L.P.
and Sprout&nbsp;IX Plan Investors, L.P., each an affiliate of
Credit Suisse Securities (USA)&nbsp;LLC, will not be eligible to
participate in the directed share program.
</DIV>

<DIV align="left" style="font-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 $101.8&nbsp;million of the net proceeds to us from the
offering, the concurrent private placement, borrowings under our
new term loan and approximately $10.7&nbsp;million of our
existing cash and cash equivalents in satisfaction of amounts
due upon the conversion of the preferred stock (including
accrued dividends, and assuming the offering is completed on
September&nbsp;26, 2006).
</DIV>

<DIV style="margin-top: 3pt; 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">
    Affiliates of Credit Suisse Securities (USA)&nbsp;LLC will
    receive approximately $98.0&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 20,332&nbsp;shares of our common stock
    and the right to receive approximately $0.3&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">
    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
    2,598,852&nbsp;shares of our common stock and the right to
    receive $41.9&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 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
    6,088,000&nbsp;shares of our common stock and the right to
    receive $98.0&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</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">
    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
    6,088,000&nbsp;shares of our common stock and the right to
    receive $98.0&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">
    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
    2,598,852&nbsp;shares of our common stock and the right to
    receive $41.9&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">
    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 3,044,000&nbsp;shares of our Series&nbsp;A, B, C, D and E
    preferred stock, which will be converted into
    6,088,000&nbsp;shares of our common stock and the right to
    receive $98.0&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 101,074&nbsp;shares of our
    common stock and the right to receive $1.5&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 3,334&nbsp;shares of our common stock and the right to
    receive approximately $0.1&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
    102,824&nbsp;shares of our preferred stock which will be
    converted into the right to receive 187,247&nbsp;shares of our
    common stock and $2.9&nbsp;million in cash upon completion of
    the offering. The ownership interests of Messrs.&nbsp;Barry,
    Fanzilli, Geeslin, 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: 3pt; 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 250,000,000&nbsp;shares of common stock, par value
$0.01&nbsp;per share, and 50,000,000&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: 6pt; 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: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of July&nbsp;31, 2006, there were 35,400,240&nbsp;shares of
common stock outstanding on an as-converted basis held by
approximately 385&nbsp;stockholders of record. After giving
effect to the sale to the public of the shares of common stock
offered in this prospectus (including the sale of shares of
common stock through the directed share program) and the
concurrent private placement, there will be
41,651,028&nbsp;shares of common stock outstanding.
</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 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: 3pt; 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: 3pt; 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: 6pt; 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: 3pt; 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" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
<B>Voting Trust&nbsp;Agreement</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;
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 14,577,860&nbsp;shares of
our common stock, representing approximately 35.0% 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 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>

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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 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 our
Series&nbsp;A through E cumulative redeemable convertible
preferred stock and Series AA, BB and CC convertible preferred
stock have rights, at their request, to have their shares
registered for resale under the Securities Act. Four groups of
holders of 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>

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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>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 our
Series&nbsp;A through E cumulative redeemable convertible
preferred stock and Series AA, BB and CC convertible preferred
stock 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 Global 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>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">90

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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>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">91

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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 Global 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 Global Market under the symbol &#147;CVLT.&#148;
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">92

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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" style="font-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 41,651,028&nbsp;shares of
common stock outstanding, assuming no outstanding options are
exercised after July&nbsp;31, 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, and shares acquired pursuant to the directed share
program, which will be subject to lock-up agreements prohibiting
sales for a period of 180&nbsp;days after the date of this
prospectus, subject to certain exceptions as described below.
890,952 shares of common stock have been reserved for sale
pursuant to the directed share program and, if acquired pursuant
to such program, will be subject to lock-up agreements.
35,502,880&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" style="font-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 align="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    526,502</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    After the date of this prospectus</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &#151;</DIV>
    </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 align="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    6,974,748</DIV>
    </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 align="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    28,892,582</DIV>
    </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" style="font-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 July&nbsp;31, 2006, options to purchase a
total of 7,821,713&nbsp;shares of common stock are outstanding,
of which 4,352,531 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" 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>

</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">
    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 one for two
    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
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, directors and substantially all of our
stockholders, including the stockholders that will acquire
shares pursuant to the directed share program, 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 Global 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 6,974,748&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>

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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>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>

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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">
    one percent of the number of shares of common stock then
    outstanding (approximately 416,510&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 Global Market during the four calendar weeks before a
    notice of the sale on Form&nbsp;144 is filed.</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;
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>

<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 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>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">97

<!-- 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>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;">98

<!-- 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: 3pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="19%">&nbsp;</TD>
    <TD width="1%">&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>11,111,111</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: 3pt; 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: 3pt; 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: 3pt; 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: 3pt; ">

<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: 3pt; 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 $98.0&nbsp;million from the net
proceeds of this offering, the concurrent private placement,
borrowings under our new term loan and cash from our existing
cash and cash equivalents in satisfaction of the amounts due to
the affiliates 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
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
assuming the offering is completed on September&nbsp;26, 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: 3pt; 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">
    issuances of common stock pursuant to the exercise of options
    outstanding on the date of this prospectus;</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">
    grants of employee stock options pursuant to our stock option
    plan or long term incentive plan;</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">
    issuances of common stock pursuant to the exercise of such
    options;</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 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: 3.0pt">&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 one for
    two&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, including the stockholders that will acquire
shares pursuant to the directed share program, have agreed that
they will not:
</DIV>

<DIV style="margin-top: 3pt; 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">
    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: 3.0pt">&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: 3.0pt">&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 Global 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 6,974,748&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
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
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;
The underwriters have reserved 890,952 shares of our common
stock offered in this prospectus for sale to holders of shares
of our Series&nbsp;CC preferred stock, pursuant to a directed
share program, at a price per share equal to the price to the
public shown on the cover page of this prospectus. The holders
acquired certain preemptive rights in connection with their
acquisition of shares of Series&nbsp;CC preferred stock. The
holders have waived their preemptive rights in connection with
this offering, and any future preemptive rights will terminate
at the closing of this offering. In lieu of such preemptive
rights, the Series CC holders will be offered pursuant to the
directed share program a number of shares of common stock equal
to the number of shares such holders would have been entitled to
acquire pursuant to their preemptive rights. The number of
shares available for sale to the general public in this offering
will be reduced to the extent the holders of our Series&nbsp;CC
preferred stock purchase the reserved shares. Any reserved
shares not so purchased will be offered by the underwriters to
the general public on the same terms as the other 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;
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
Global 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 62.9% of our common stock as of July&nbsp;31, 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 39.9% 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 4.9% 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>

</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">
    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 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
    0.10% of our Series&nbsp;CC preferred stock, and upon completion
    of the offering and related transactions will own approximately
    0.10% of our common stock.</TD>
</TR>

</TABLE>

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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>&#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 0.7% 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 $98.0&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;2006).
    See &#147;Certain Relationships and Related Party
    Transactions&#148; for more information regarding these payments.</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 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" style="font-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>

</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">
    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>

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

<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">&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>

<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">&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>

</TABLE>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">104

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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="97%"></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 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
</DIV>

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

<!-- link1 "LEGAL MATTERS" -->

<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>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>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='120'></A>
</DIV>

<!-- link1 "EXPERTS" -->

<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>EXPERTS</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;
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>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">106

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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; 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" style="font-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; 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" style="font-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" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<A name='121'></A>
</DIV>

<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION" -->

<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>WHERE YOU CAN FIND MORE 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 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" style="font-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" style="font-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" style="font-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>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">107

<!-- 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="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="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="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>Three months ended June&nbsp;30, 2005 (unaudited) and 2006
(unaudited)</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; ">
<A name='122'></A>
</DIV>

<!-- link1 "Index to Consolidated Financial Statements and Schedule" -->

<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>Index to Consolidated Financial Statements and Schedule</B>
</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="91%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <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="right" 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 and June&nbsp;30, 2006
    (unaudited)</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" 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 and the three
    months ended June&nbsp;30, 2005 (unaudited) and 2006
    (unaudited)</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" 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 and the three months ended June&nbsp;30,
    2006 (unaudited)</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" 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 and the three
    months ended June&nbsp;30, 2005 (unaudited) and 2006
    (unaudited)</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" 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="right" 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="right" valign="bottom">
    F-32</TD>
</TR>

</TABLE>
</CENTER>

<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" style="font-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" style="font-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" style="font-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 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="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"><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; ">
MetroPark, New Jersey
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
June&nbsp;28, 2006, except as to Note&nbsp;13,
</DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
as to which the date is
</DIV>

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

</FONT></DIV>

<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
September 14, 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>

<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="51%">&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="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 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="3">&nbsp;</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>June&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30,</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>
    <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>
</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>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Unaudited)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="18" 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>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>53,501</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>42,785</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,
    and $534 at June&nbsp;30, 2006</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>17,528</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,528</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>1,571</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,571</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>

</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>72,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61,884</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>3,675</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,675</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>1,785</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,785</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>

</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">$</TD>
    <TD align="right" valign="bottom" nowrap>78,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>67,344</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>

</TR>

<TR>
    <TD colspan="18">&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>
    <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>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>1,878</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,878</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>13,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,067</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Due to Series&nbsp;A through E preferred stockholders</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>74,690</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">
    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>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <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>29,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,412</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>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <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>44,357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>134,047</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <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>3,476</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,476</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>11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11</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>
    <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>
    <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>100,579</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="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>
    <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 June&nbsp;30, 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>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>
</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, 60,425&nbsp;shares
    authorized, 18,809, 18,960 and 19,381&nbsp;shares issued and
    outstanding at March&nbsp;31, 2005 and 2006 and June&nbsp;30,
    2006, respectively; 35,503&nbsp;shares issued and outstanding
    pro forma at June&nbsp;30, 2006 (unaudited)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>188</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>355</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>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94,364</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>&#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="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>(175,715</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(164,959</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(165,109</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(165,109</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">
    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>200</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>
</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>

</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>(70,363</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(70,190</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>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>78,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>67,344</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>

</TR>

</TABLE>
</CENTER>

<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>

<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="47%">&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="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="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>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Three Months Ended</B></TD><TD></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>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>June&nbsp;30,</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>
    <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>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>
    <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="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>(Unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Unaudited)</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">
    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>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>62,422</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>18,788</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,660</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,734</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33,522</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>337</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>272</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,683</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,513</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,785</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 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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,737</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,853</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,307</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,338</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,418</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,081</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,653</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>497</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 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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(552</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,862</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(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>&#151;</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">
    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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>524</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(381</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,386</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) benefit</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(45</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(365</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,341</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,411</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,411</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>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>5,095</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1,776</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,930</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>

<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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.93</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.28</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.09</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.07</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>

<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">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.93</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.28</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.09</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.06</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>

<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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>18,601</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,807</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,039</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>

<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>18,601</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,807</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,110</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>

<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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>(2.16</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</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">&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>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>(2.16</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</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">&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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>34,961</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,161</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>
    <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>34,961</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,546</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>
    <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>

<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="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>Years ended March&nbsp;31, 2004, 2005 and 2006 and the three
months ended June&nbsp;30, 2006 (Unaudited)</B>
</DIV>

<DIV align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
<B>(In thousands)</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 8.5pt; 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="19%">&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="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: 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">$</TD>
    <TD align="right" valign="bottom" nowrap>79,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>187</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">$</TD>
    <TD align="right" valign="bottom" nowrap>(155,469</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</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>84</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>372</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" 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>(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>&#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>(2,154</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>(3,522</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>18,780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>188</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>(170,689</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>31</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>152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" 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>(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>&#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>(152</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>(5,509</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>18,809</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>188</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>(175,715</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>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>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">&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>18,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>190</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>(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>(164,959</TD>
    <TD align="left" valign="bottom" nowrap>)</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>(73,664</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>33</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>155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" 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>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cashless exercise of stock warrants 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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" 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>
    <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>(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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" 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">
    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>3,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,341</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 (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>(181</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(181</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>
    <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>3,160</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">
    Stock-based 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>1,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>137</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,397</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reversal of deferred compensation upon adoption of
    SFAS&nbsp;123(R)</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>(4,506</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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,628</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>&#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">
    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>(1,411</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>(1,411</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 June&nbsp;30, 2006 (unaudited)</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">$</TD>
    <TD align="right" valign="bottom" nowrap>94,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>194</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">$</TD>
    <TD align="right" valign="bottom" nowrap>(165,109</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(70,363</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>

<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>

<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="39%">&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>
    <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="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>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Three Months 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>Year Ended March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>June&nbsp;30,</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>
    <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>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>
    <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>
    <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="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>(Unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Unaudited)</B></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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>10,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(365</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,341</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 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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>392</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>553</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,397</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,575</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>710</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>306</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(189</TD>
    <TD align="left" valign="bottom" nowrap>)</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(740</TD>
    <TD align="left" valign="bottom" nowrap>)</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>&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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(399</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>382</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>85</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,417</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,678</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(281</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(906</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(281</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(906</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>
    <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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(50</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>
</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>
    <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>(284</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>
    <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>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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(49</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(129</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">
    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>
    <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>(181</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,084</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,462</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 period</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</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: 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="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents at end of period</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">$</TD>
    <TD align="right" valign="bottom" nowrap>48,039</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>29,879</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>53,501</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4</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" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income taxes paid</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">$</TD>
    <TD align="right" valign="bottom" nowrap>483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</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>177</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<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" 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 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 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 16,019&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 amount payable totaling $101,792 reflecting 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 September&nbsp;26, 2006);</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 $15,000 under a new term loan at an interest
    rate equal to 30-day LIBOR plus 1.50%, and assumed to be
    6.80%&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 $13.50 per share, the midpoint
    of the estimated price range shown on the cover of the
    prospectus);</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 use of $10,716 of the Company&#146;s existing cash and cash
    equivalents 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 $13.50&nbsp;per share, the midpoint of the estimated
    price range shown on the cover of the prospectus); 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 completion of the concurrent private placement of
    103&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 $13.50&nbsp;per share (the
    midpoint of the estimated price range shown on the cover page of
    the prospectus) the Company will raise approximately $1,386 in
    proceeds from 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; ">&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>

<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>

<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="61%">&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="12%">&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>Three Months</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>Year Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>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>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30, 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">
    Net income attributable to common stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,095</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,930</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,411</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>
    <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">
    Accretion of fair value of preferred stock upon conversion</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>85,330</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 align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense associated with term loan borrowings, net of
    taxes of $23 and $2, respectively</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>774</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>120</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">
    Pro forma net income (loss) attributable to common stockholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(75,348</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,221</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" style="font-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>

<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="61%">&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="12%">&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>Three Months</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>Year Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>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>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30, 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">
    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>18,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,039</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>
    <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>16,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,019</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>103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>103</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">
    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>34,961</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,161</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>

<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="61%">&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="12%">&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>Three Months</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>Year Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>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>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30, 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">
    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>30,932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,110</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>
    <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">
    Anti-dilutive stock options</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,192</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 align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Anti-dilutive common stock warrants</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>215</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="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>
    <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 conversion of outstanding preferred stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,333</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>103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>103</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>
    <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>34,961</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,546</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>

<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 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>Use of Estimates</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 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 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 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" 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" 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
</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; ">
and can also be performed by the customer or a third party. In
addition to a signed purchase order, 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 when sold and performed on a
stand-alone basis or included in multiple-element arrangements.
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 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: 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">
    <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 style="font-size: 3.0pt">&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: 3.0pt">&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: 3.0pt">&nbsp;</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>

</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>

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

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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="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>Cost of 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;
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 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" style="font-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" style="font-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" style="font-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>

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

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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="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>

<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="40%">&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>
    <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="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 8.0pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Three Months Ended</B></TD><TD></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>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>June&nbsp;30,</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>
    <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>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>
    <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="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>(Unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Unaudited)</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>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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>10,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(365</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,341</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,411</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,411</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,776</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,930</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>
    <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>(651</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>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>3,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1,776</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,279</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>

<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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>18,601</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,807</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,039</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>

<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">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.93</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.28</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.09</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.07</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>

<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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>10,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(365</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,341</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,411</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,411</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>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>5,095</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1,776</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,930</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>

<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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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>18,601</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,807</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,039</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>9,686</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>9,686</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>2,192</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>3,122</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>215</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>263</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">
    Diluted weighted average shares outstanding</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,601</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,932</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,807</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,110</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>

<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">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.93</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.28</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.09</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.06</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>

<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 align="left" style="font-size: 3.0pt;color: #000000; background: #ffffff; margin-top: 18pt; 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">
    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 style="font-size: 3.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    In the years ended March&nbsp;31, 2004 and 2005 and the three
    months ended June&nbsp;30, 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 and the three
    months ended June&nbsp;30, 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 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 and the three months ended
    June&nbsp;30, 2006.</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 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>

<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="43%">&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="10%">&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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Three Months Ended</B></TD><TD></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>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>June&nbsp;30,</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>
    <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>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>
    <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>
    <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="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>(Unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Unaudited)</B></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>4,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,679</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>5,955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>643</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>16,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,333</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>2,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,307</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>2,307</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>
    <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>23,090</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,281</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,976</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>

</TR>

</TABLE>
</CENTER>

<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>

<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 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>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" style="font-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%, 8%, 3% and 11% of total revenues for
the years ended March&nbsp;31, 2004, 2005 and 2006 and the three
months ended June&nbsp;30, 2005 (unaudited) and 2006
(unaudited), 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" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
One customer accounted for approximately 12%, 18%, 13% and 22%
of total revenues for the year ended March&nbsp;31, 2005 and
2006 and the three months ended June&nbsp;30, 2005 (unaudited)
and 2006 (unaudited), respectively. No one customer accounted
for more than 10% of total revenues for the year ended
March&nbsp;31, 2004. One customer accounted for 21% and 25% of
accounts receivable as of March&nbsp;31, 2006 and June&nbsp;30,
2006 (unaudited), respectively. No one customer accounted for
more than 10% of accounts receivable as of March&nbsp;31, 2005.
</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" style="font-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 and the three months ended June&nbsp;2006 (unaudited).
</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" style="font-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 was approximately $855 and $1,359 as of March&nbsp;31,
2006 and June&nbsp;30, 2006 (unaudited), respectively.
</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 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>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>

<DIV align="left" style="font-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 revenue consists of the following:
</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="65%">&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="10%">&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>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <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="2" align="center" nowrap><B>June&nbsp;30,</B></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>
    <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 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>(Unaudited)</B></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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>856</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,556</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">$</TD>
    <TD align="right" valign="bottom" nowrap>19,273</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>29,765</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>29,412</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>

<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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,476</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 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" 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;
Prior to April&nbsp;1, 2006, the Company accounted for it stock
option plan under the recognition and measurement provisions of
APB Opinion No.&nbsp;25, <I>Accounting for Stock Issued to
Employees</I>, and related Interpretations, as permitted by FASB
Statement No.&nbsp;123, (&#147;SFAS&nbsp;123&#148;),
<I>Accounting for Stock-Based Compensation</I>. Stock-based
employee compensation cost was recognized in the Statement of
Operations for the years ended March&nbsp;31, 2004, 2005 and
2006, to the extent stock options granted had an exercise price
that was less than the fair value of the underlying common stock
on the date of grant. Effective April&nbsp;1, 2006, the Company
adopted the fair value recognition provisions of
SFAS&nbsp;Statement No.&nbsp;123(revised 2004), <I>Share-Based
Payment</I>, (&#147;SFAS&nbsp;123(R)&#148;) using the modified
prospective method and therefore has not restated the
Company&#146;s financial results for prior periods. Under this
transition method, stock-based compensation costs in the three
months ended June&nbsp;30, 2006 includes the portion related to
stock options vesting in the period for (1)&nbsp;all options
granted prior to, but not vested as of April&nbsp;1, 2006, based
on the grant date fair value in accordance with the original
provisions of SFAS&nbsp;123 and (2)&nbsp;all options granted
subsequent to April&nbsp;1, 2006, based on the grant date fair
value estimated in accordance with SFAS&nbsp;123(R). As a result
of adopting SFAS&nbsp;123(R) on April&nbsp;1, 2006, the
Company&#146;s income before income taxes and net income for the
three months ended June&nbsp;30, 2006 (unaudited) is $839 lower
than if the Company had continued to account for stock-based
compensation under APB Opinion No.&nbsp;25. Basic and diluted
net income attributable to common stockholders per share for the
three months ended June&nbsp;30, 2006 (unaudited) is $0.04 and
$0.03 lower, respectively, than if the Company had continued to
account for stock-based compensation under APB Opinion
No.&nbsp;25. As of June&nbsp;30, 2006 (unaudited), there was
approximately $15,546 of unrecognized stock-based compensation
expense related to non-vested stock option awards that is
expected to be recognized over a weighted average period of
1.74&nbsp;years.
</DIV>

<DIV align="left" style="font-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 the adoption of SFAS&nbsp;123(R), the Company presented
its unamortized portion of deferred compensation cost for
nonvested stock options in the statement of stockholders&#146;
deficit with a corresponding credit to additional paid-in
capital. Upon the adoption of SFAS&nbsp;123(R), these amounts
</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: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
were offset against each other as SFAS&nbsp;123(R) prohibits the
&#147;gross-up&#148; of stockholders equity. Under
SFAS&nbsp;123(R), an equity instrument is not considered to be
issued until the instrument vests. As a result, compensation
cost is recognized over the requisite service period with an
offsetting credit to additional paid-in capital.
</DIV>

<DIV align="left" style="font-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 illustrates the effect on net income (loss)
and earnings (loss) per share if the Company had applied the
provisions of SFAS&nbsp;123 to options granted under the
company&#146;s stock option plan for all periods presented prior
to the adoption of SFAS&nbsp;123(R).
</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="48%">&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>
    <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="16%">&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>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="2">&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><B>Three Months 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>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>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30, 2005</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>
</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="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="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">$</TD>
    <TD align="right" valign="bottom" nowrap>10,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(365</TD>
    <TD align="left" valign="bottom" nowrap>)</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,411</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,776</TD>
    <TD align="left" valign="bottom" nowrap>)</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,013</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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,738</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">
    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>
    <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="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>

</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">$</TD>
    <TD align="right" valign="bottom" nowrap>770</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(2,738</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">
    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>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.93</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.28</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.09</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: 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 align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.93</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.28</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.09</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: 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="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>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>(1.17</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.51</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.15</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: 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 align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1.17</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.51</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.15</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: 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 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. The weighted average
assumptions that were used for option grants in the respective
periods are 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="53%">&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="18%">&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>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&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><B>Three Months Ended</B></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>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June&nbsp;30, 2005</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 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="2" align="center" nowrap><B>(Unaudited)</B></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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>49</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.98</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>
    <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>

<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 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;
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>

<DIV align="left" style="font-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 adoption of SFAS&nbsp;123(R), the Company selected the
Black-Scholes option pricing model as the most appropriate model
for determining the estimated fair value for stock-based awards.
The fair value of stock option awards subsequent to
April&nbsp;1, 2006 is amortized on a straight-line basis over
the requisite service period of the awards, which is generally
the vesting period. Expected volatility was calculated based on
reported data for a peer group of publicly traded companies for
which historical information was available. The Company will
continue to use peer group volatility information until
historical volatility of the Company is relevant to measure
expected volatility for future option grants. The average
expected life was determined according to the &#147;SEC shortcut
approach&#148; as described in SAB&nbsp;107, <I>Disclosure about
Fair Value of Financial Instruments</I>, which is the mid-point
between the vesting date and the end of the contractual term.
The risk-free interest rate is determined by reference to U.S.
Treasury yield curve rates with a remaining term equal to the
expected life assumed at the date of grant. Forfeitures are
estimated based on the Company&#146;s historical analysis of
actual stock option forfeitures. The assumptions used in the
Black-Scholes option-pricing model are 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="74%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="21%">&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>Three Months Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>June 30, 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>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Unaudited)</B></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>
</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>55</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 rates</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.95%-5.04</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>6.25</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<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 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 presents the stock-based compensation
expense included in our cost of services revenue, sales and
marketing, research and development and general and
administrative expenses for the years ended March&nbsp;31, 2004,
2005 and 2006 and the three months ended June&nbsp;30, 2005 and
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="45%">&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="4%">&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>
    <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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Three Months Ended</B></TD><TD></TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Year Ended March 31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>June 30,</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>
    <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>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>
    <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>
    <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="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>(Unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Unaudited)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cost of services revenue</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>26</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <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>&#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>468</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>617</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <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>&#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>137</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>187</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    General and administrative(1)</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>761</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>567</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>
    <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 align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Stock-based compensation expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,397</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>

</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">
    The year ended March&nbsp;31, 2006 includes $263 of stock-based
    compensation expense related to the acceleration of the vesting
    period related to 41 stock options.</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 recognized no tax benefits related to the
stock-based compensation expense recognized in the years ended
March&nbsp;31, 2004, 2005 and 2006 and in the three months ended
June&nbsp;30, 2005 (unaudited)&nbsp;and 2006 (unaudited).
</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>Advertising 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;
The Company expenses advertising costs as incurred. Advertising
expenses were $868, $1,268, $1,551, $303 and $358 for the years
ended March&nbsp;31, 2004, 2005 and 2006 and the three months
ended June&nbsp;30, 2005 (unaudited) and 2006 (unaudited),
respectively.
</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>

<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" style="font-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 June 2006, the Financial Accounting Standards Board
(&#147;FASB&#148;) issued FASB Interpretation No.&nbsp;48,
&#147;Accounting for Uncertainty in Income Taxes&nbsp;&#151; an
interpretation of FASB Statement No.&nbsp;109&#148;
</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 align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
(&#147;FIN&nbsp;48&#148;). FIN&nbsp;48 clarifies the accounting
for uncertainty in income taxes recognized in financial
statements in accordance with FASB Statement No.&nbsp;109,
&#147;Accounting for Income Taxes.&#148; FIN&nbsp;48 prescribes
a recognition threshold and measurement attribute for the
financial statement recognition and measurement of a tax
position taken or expected to be taken in a tax return.
FIN&nbsp;48 also provides guidance on derecognition,
classification, interest and penalties, accounting in interim
periods, disclosure, and transition. The Company is required to
adopt the provisions of FIN&nbsp;48 during the first fiscal year
beginning after December&nbsp;15, 2006. The Company is currently
evaluating the impact of FIN&nbsp;48 on its consolidated results
of operations and financial position.
</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>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>

<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="63%">&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="10%">&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>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <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="2" align="center" nowrap><B>June&nbsp;30,</B></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>
    <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 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>(Unaudited)</B></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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12,217</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,401</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,073</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,371</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,187</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">&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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,249</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14,574</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>&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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,675</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" style="font-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, $1,682, $392 and $553 for the years ended
March&nbsp;31, 2004, 2005 and 2006 and the three months ended
June&nbsp;30, 2005 (unaudited) and 2006 (unaudited),
respectively.
</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>

<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="64%">&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="10%">&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>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <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="2" align="center" nowrap><B>June&nbsp;30,</B></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>
    <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 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>(Unaudited)</B></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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,627</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,440</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 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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>13,067</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 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>5.</B></TD>
    <TD>
    <B>Line of Credit and Term Loan</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 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.
</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" 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;
In May 2006, the Company entered into a $20,000 term loan
facility in connection with the payments due to the holders of
its Series&nbsp;A through&nbsp;E Stock upon an initial public
offering. The term loan is secured by substantially all of the
Company&#146;s assets. Borrowings under the term loan will bear
interest at a rate equal to the 30-day LIBOR plus 1.50% with
principal and interest to be repaid in quarterly installments
over a 24-month period, subject to acceleration, at any time, at
the discretion of the lender. 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 as of June 30, 2006.
</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>6.</B></TD>
    <TD>
    <B>Commitments and Contingencies</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 leases various office and warehouse facilities under
noncancelable leases which expire on various dates through
September&nbsp;30, 2010. Future minimum lease payments under all
operating leases at June&nbsp;30, 2006 are as follows
(unaudited):
</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>2,186</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>2,516</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>994</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>96</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>41</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>5,833</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;
Rental expenses were $2,427, $2,618, $2,844, $690 and $788 for
the years ended March&nbsp;31, 2004, 2005, 2006 and three months
ended June&nbsp;30, 2005 (unaudited) and 2006 (unaudited),
respectively.
</DIV>

<DIV align="left" style="font-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" style="font-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, 2006 and June&nbsp;30,
2006 (unaudited), 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" style="font-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 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" style="font-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>

<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 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 June&nbsp;30, 2006
(unaudited) are 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="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">$</TD>
    <TD align="right" valign="bottom" nowrap>18.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>36,849</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>16.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,536</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>15.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,092</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>13.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,320</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>13.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,611</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;
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;two 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" style="font-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), the Company is obligated to pay the aggregate cash
amount of $14.85&nbsp;per share plus the aggregate amount of
unpaid dividends. If any remaining assets are available for
distribution, such assets shall be distributed on a pro-rata
basis to the holders of the Series&nbsp;A through E Preferred
Stock and common stock, with all shares being treated as a
single class on an as if-converted basis. Upon a qualified
initial public offering, the Series&nbsp;A through E Preferred
Stock shall be convertible into four shares of common stock and
a cash payment of $14.85&nbsp;per share plus all accrued but
unpaid dividends of $1.788&nbsp;per share per year. 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 and $100,427 at March&nbsp;31, 2006 and June&nbsp;30,
2006 (unaudited), respectively.
</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 20 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" style="font-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
</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" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
(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 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>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
0.514:1.
</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: 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>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
0.5:1 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 0.5:1 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>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-22

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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="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;
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
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 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" style="font-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;2,233&nbsp;shares of
common stock at an exercise price of $27.14. In July 2003, the
warrant was cancelled and replaced with a fully vested warrant
to purchase up to 1,500&nbsp;shares of common stock at an
exercise price of $12.54&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" style="font-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
807&nbsp;shares of common stock at an exercise price of
$10.50&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 was 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 also
contained provisions to 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. On June&nbsp;15, 2006, the holder of the
warrant to purchase up to 807&nbsp;shares of common stock
elected to make a cashless exercise of the warrant and received
315&nbsp;shares of common stock. Pursuant to the preemptive
rights of the Series&nbsp;AA, BB and CC preferred stockholders
that were triggered by the exercise of the warrant, such
Series&nbsp;AA, BB and CC preferred stockholders (other than
individuals that also own Series&nbsp;A through E Stock)
purchased 73&nbsp;shares of common stock on a cashless basis.
</DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-23

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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="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" style="font-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 June&nbsp;30,
2006 (unaudited) 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="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>7,701</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>4,079</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>692</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>667</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>494</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>400</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>2,242</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>1,379</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>6,066</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>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23,720</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 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>9.</B></TD>
    <TD>
    <B>Stock Plans</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 maintains a stock option plan (the &#147;Plan&#148;)
pursuant to which the Company may grant options to
purchase&nbsp;11,705&nbsp;shares of common stock to certain
officers and 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;
The following summarizes the Plan&#146;s activity from
March&nbsp;31, 2003 to June&nbsp;30, 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="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>3,674</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4.66</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>1,511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.80</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>(84</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.94</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>(337</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.86</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>4,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.62</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>1,175</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.66</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>(31</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.92</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>(229</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.80</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>5,679</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.53</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>2,492</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.57</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>(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>4.62</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>(433</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.53</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>7,587</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.56</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>240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.04</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>(33</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.64</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>(93</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.87</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 June&nbsp;30, 2006 (unaudited)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,701</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.76</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: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<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" 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 weighted average fair value of stock options granted during
the years ended March&nbsp;31, 2004, 2005, 2006 and the three
months ended June&nbsp;30, 2005 (unaudited) and 2006 (unaudited)
was $3.38, $3.45, $6.36, $4.54 and $7.81, respectively. The
total intrinsic value of options exercised was approximately
$21, $959 and $276 in the years ended March&nbsp;31, 2005 and
2006 and in the three months ended June&nbsp;30, 2006
(unaudited), respectively.
</DIV>

<DIV align="left" style="font-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 June&nbsp;30, 2006 (unaudited):
</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="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>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>Number of</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>Options</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>June&nbsp;30,</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>Exercisable at</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>June&nbsp;30, 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">
    $&nbsp;0.025</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;0.025</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.025</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;&nbsp;4.00</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>894</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;&nbsp;4.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.00&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;&nbsp;4.50</DIV>
    </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>8.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;&nbsp;4.50</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>4.50&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;&nbsp;4.70</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;&nbsp;4.70</TD>
    <TD>&nbsp;</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>4.70&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;&nbsp;4.80</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;&nbsp;4.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.80&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;&nbsp;5.00</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,096</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;&nbsp;5.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>970</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.00&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;&nbsp;5.30</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>8.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;&nbsp;5.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.30&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;&nbsp;6.00</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,101</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;&nbsp;6.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,791</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.00&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;&nbsp;6.70</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;&nbsp;6.70</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>0.00&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;&nbsp;7.20</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;&nbsp;7.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.20&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;&nbsp;7.50</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;&nbsp;7.50</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>0.00&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;&nbsp;8.00</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;&nbsp;8.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.00&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;&nbsp;8.10</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;&nbsp;8.10</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>0.00&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;11.70</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;11.70</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>0.00&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;12.60</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>9.84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;12.60</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>0.00&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: 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">
    $&nbsp;0.025-12.60</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,701</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;&nbsp;5.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,245</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5.55&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" 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" 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 and June&nbsp;30, 2006 (unaudited), there were 560, 499
and 352&nbsp;options available for future grant under the Plan,
respectively. The aggregate intrinsic value of stock options
exercisable at June&nbsp;30, 2006 (unaudited) was approximately
$31,956. The weighted average remaining contractual life of
stock options exercisable at June&nbsp;30, 2006 (unaudited) was
5.82&nbsp;years.
</DIV>

<DIV align="left" style="font-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 regarding stock
options vested and expected to vest under the Plan at
June&nbsp;30, 2006 (unaudited):
</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="87%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&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">
    Stock options outstanding</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,406</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Weighted average exercise price</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5.75</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Aggregate intrinsic value</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>54,323</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Weighted average remaining contractual life (in years)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.10</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<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" 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;
During the year ended March&nbsp;31, 2006 and the three months
ended June&nbsp;30, 2006, the Company granted stock options with
exercise prices as follows:
</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 5, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2.42</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    July 29, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.66</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    September 19, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.48</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    November 3, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.64</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    January 26, 2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>334</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.58</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    March 2, 2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12.84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.74</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    April 20, 2006 (unaudited)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.70</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>1.28</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    May 3, 2006 (unaudited)</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>12.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.48</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>2,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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" style="font-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 and
the three months ended June&nbsp;30, 2006, the Company performed
a retrospective determination of the fair value of its common
stock. 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" style="font-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 360 options granted to employees on May&nbsp;5, 2005
was determined to be $6.92 per share. The increase in fair value
as compared to the January&nbsp;27, 2005 value was primarily due
to 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 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 style="font-size: 6.0pt">&nbsp;</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 style="font-size: 6.0pt">&nbsp;</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 style="font-size: 6.0pt">&nbsp;</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>

</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 reassessed fair value of the Company&#146;s common stock
underlying 461 options granted to employees on July&nbsp;29,
2005 was determined to be $8.36 per share. The increase in fair
value as compared to the May&nbsp;5, 2005 value was primarily
due to 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 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 style="font-size: 6.0pt">&nbsp;</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 style="font-size: 6.0pt">&nbsp;</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>

</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 reassessed fair value of the Company&#146;s common stock
underlying 800 options granted to employees on
September&nbsp;19, 2005 was determined to be $9.18 per share. On
September&nbsp;19, 2005, the Company&#146;s compensation
committee awarded options to several key executives. The
underlying
</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" style="font-size: 10.0pt;color: #000000; background: #ffffff; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; ">
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" style="font-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 375 options granted to employees on November&nbsp;3,
2005 was determined to be $10.34 per share. The increase in fair
value as compared to the September&nbsp;19, 2005 value was
primarily due to the following:
</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">
    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 style="font-size: 3.0pt">&nbsp;</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 style="font-size: 3.0pt">&nbsp;</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>

</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 reassessed fair value of the Company&#146;s common stock
underlying 334 options granted to employees on January&nbsp;26,
2006 was determined to be $11.08 per share. The increase in fair
value as compared to the November&nbsp;3, 2005 value was
primarily due to the following:
</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">
    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 style="font-size: 3.0pt">&nbsp;</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 style="font-size: 3.0pt">&nbsp;</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 style="font-size: 3.0pt">&nbsp;</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>

</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 reassessed fair value of the Company&#146;s common stock
underlying 164 options granted to employees on March&nbsp;2,
2006 was determined to be $12.84 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" style="font-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 150 options and 90 options granted to employees on
April&nbsp;20, 2006 and May&nbsp;3, 2006 was determined to be
$12.98 per share and $13.08 per share, respectively. The
increase in fair value as of April&nbsp;20, 2006 and May&nbsp;3,
2006 as compared to the March&nbsp;2, 2006 value was primarily
due to the following:
</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 Company achieved its third quarter of consecutive
    profitability and completed its most profitable fiscal year for
    the year ended March&nbsp;31, 2006;</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 Company continued to generate cash flows from operations
    significantly exceeding budgeted and prior year amounts.</TD>
</TR>

</TABLE>

<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" 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 Company maintained a 90% probability estimate for the
initial public offering scenario under the PWER method for the
April&nbsp;20, 2006 and May&nbsp;3, 2006 common stock valuations.
</DIV>

<DIV align="left" style="font-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 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>

<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" style="font-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 current income tax expense (benefit) were 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="74%">&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="3%">&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="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="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 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">
    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" style="font-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>

<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="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>

<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" 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;
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>

<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="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" 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;
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 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" style="font-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 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" style="font-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 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 $164,959 reported on the consolidated
balance sheet.
</DIV>

<DIV align="left" style="font-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, 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" style="font-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, 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>

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

<TR valign="top">
    <TD><B>11.</B></TD>
    <TD>
    <B>Employee Benefit Plan</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 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>

<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="33%">&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="10%">&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="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Three Months</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>Year Ended March&nbsp;31,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Ended June&nbsp;30,</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>
    <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>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>
    <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>
    <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="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>(Unaudited)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Unaudited)</B></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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>77,762</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>15,766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>24,444</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,357</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,078</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>
    <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">$</TD>
    <TD align="right" valign="bottom" nowrap>109,472</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>22,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>33,522</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>
    <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;
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 and in the three months ended June&nbsp;30, 2005
(unaudited) and June&nbsp;30, 2006 (unaudited). Revenue included
in the &#147;Other&#148; caption above primarily relates to the
Company&#146;s operations in Europe, Australia and Canada.
</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="55%">&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="10%">&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>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8.0pt;">
    <TD colspan="3">&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>June&nbsp;30,</B></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>
    <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 style="font-size: 8.0pt;">
    <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>(Unaudited)</B></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>
    <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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,026</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,434</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">$</TD>
    <TD align="right" valign="bottom" nowrap>2,427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,414</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,460</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>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-30

<!-- 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;
At March&nbsp;31, 2006 and June&nbsp;30, 2006 (unaudited),
Germany had long-lived assets of $624 and $608, respectively. 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 and June&nbsp;30, 2006 (unaudited).
</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" style="font-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" style="font-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 Company&#146;s initial public offering:
</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.)&nbsp;the Company effected a one for two reverse stock split
of its common shares on September&nbsp;14, 2006. All share and
per share amounts related to common shares, options and warrants
included in these consolidated financial statements and notes to
consolidated financial statements have been restated to reflect
the reverse stock split. The conversion ratios of the
Company&#146;s Series&nbsp;A through E Stock, Series&nbsp;AA
Stock, Series&nbsp;BB Stock and Series&nbsp;CC Stock have also
been adjusted to reflect the reverse stock split;
</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;
(ii.)&nbsp;the Company will record a charge to net income
(loss)&nbsp;attributable to common stockholders of approximately
$85,300 (assuming the initial public offering is priced at
$13.50&nbsp;per share) related to the accretion of fair value of
Series&nbsp;A through E Stock upon conversion simultaneously
with the closing of the Company&#146;s initial public
offering;&nbsp;and
</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;
(iii.)&nbsp;the Company has reserved 4,000 shares of common
stock initially available for issuance under its 2006 Long-Term
Stock Incentive Plan in which awards may be granted upon the
closing of the Company&#146;s initial public offering.
</DIV>

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

</FONT></DIV>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-31

<!-- 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>

<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>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Three Months Ended June&nbsp;30, 2006 (unaudited):</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">$</TD>
    <TD align="right" valign="bottom" nowrap>475</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>534</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">$</TD>
    <TD align="right" valign="bottom" nowrap>54,170</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>46,343</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">
    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 and the
    three months ended June&nbsp;30, 2006 is primarily due to
    utilization of federal and state net operating loss
    carryforwards.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10.0pt;color: #000000; background: #ffffff;">F-32

<!-- 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;">

</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="y24537a5y2453700.gif" alt="(LOGO)">
</DIV>

<DIV style="margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></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="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="81%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&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>19,825</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>19,028</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>125,000</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>1,200,000</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>625,000</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>425,000</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>20,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <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>66,147</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">$</TD>
    <TD align="right" valign="bottom" nowrap>2,500,000</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" style="font-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
dissented at the time, may avoid liability by causing his or her
dissent to such actions to be entered on the
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
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: 6pt; 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: 6pt; 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: 6pt; 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: 6pt; 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: 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;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: 6pt; 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: 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="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 1,500,000&nbsp;shares of its common stock at
    an exercise price of $12.54&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
    2,232,500&nbsp;shares of the registrant&#146;s common stock at
    an exercise price of $27.14&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>

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

</TABLE>

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<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    from registration pursuant to Section&nbsp;4(2) of the
    Securities Act and Regulation&nbsp;D promulgated thereunder.</TD>
</TR>

<TR>
    <TD style="font-size: 9.0pt">&nbsp;</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
    807,427&nbsp;shares of its common stock at an exercise price of
    $10.50&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 style="font-size: 9.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    On June&nbsp;15, 2006, the registrant issued 315,222 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. The number of common
    shares issued on a cashless basis was 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 was determined as the greater
    of (i)&nbsp;a product obtained by multiplying the Company&#146;s
    trailing 12-month revenues by six and (ii)&nbsp;the price of
    common stock sold in a qualified financing transaction within
    six months of the cashless exercise. During the year ended
    March&nbsp;31, 2004, CommVault recorded $1,696,000 as a non-cash
    reduction of revenue in connection with this transaction at the
    time the warrants were issued. In the three months ended
    June&nbsp;30, 2006, CommVault recorded $3,877 as an increase to
    common stock with a corresponding decrease to additional paid-in
    capital related to the common stock issued in connection with
    the cashless exercise and the preemptive rights held by the
    holders of CommVault&#146;s Series AA, BB and CC preferred stock.</TD>
</TR>

<TR>
    <TD style="font-size: 9.0pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    On June&nbsp;15, 2006, concurrently with the issuance of shares
    to Dell Ventures, L.P., the registrant issued 72,423&nbsp;shares
    of common stock to holders of its Series&nbsp;AA, BB and CC
    preferred stock in accordance with the preemptive rights of such
    holders. The registrant issued shares to each holder as if each
    holder held a warrant for the shares to which it was entitled
    pursuant to its preemptive rights and exercised such warrant on
    a cashless basis. The registrant issued such shares on the same
    terms that it issued shares to Dell Ventures, L.P. on the same
    date. The registrant was required to issue such shares to comply
    with the preemptive rights of holders of Series&nbsp;AA, BB and
    CC preferred stock, which such holders acquired when they
    acquired shares of Series&nbsp;AA, BB and CC preferred stock
    between April 2000 and September 2003. Under the terms of the
    Series&nbsp;AA, BB and CC preferred stock, the issuance of such
    shares was automatic and occurred without any action or election
    by the holders of Series&nbsp;AA, BB and CC preferred stock. The
    issuance of shares was exempt from registration pursuant to
    Section&nbsp;4(2) of the Securities Act.</TD>
</TR>

<TR>
    <TD style="font-size: 9.0pt">&nbsp;</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 102,640&nbsp;shares of its common stock to Greg
    Reyes, Reyes Family Trust, Van Wagoner Capital Partners, L.P.
    and Van Wagoner Crossover Fund, L.P. in a private placement
    exempt from registration pursuant to Section&nbsp;4(2) of the
    Securities Act.</TD>
</TR>

<TR>
    <TD style="font-size: 9.0pt">&nbsp;</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
    5,710,450&nbsp;shares of common stock under the
    registrant&#146;s 1996 Stock Option Plan. Approximately
    91,565&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>

</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;
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
</DIV>

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<DIV align="left" style="font-size: 10.0pt;color: #000000; background: #ffffff;">
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 style="margin-top: 15pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<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" 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 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>

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<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>

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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>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
September&nbsp;15, 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>

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<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 September&nbsp;15, 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">
    Chief Accounting Officer</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: 6pt; ">

<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 September&nbsp;14, 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>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Form of Amended and Restated Certificate of Incorporation of
    CommVault Systems, Inc.</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">
    Form of 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">
    Form of 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">
    Form of 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">
    Form of Registration Rights Agreement 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>

<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 Amended and Restated Reseller Agreement,
    effective as of April&nbsp;6, 2005, between CommVault Systems
    and Dell 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>.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>10</TD>
    <TD align="left" valign="top" nowrap>.31**</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Waiver Agreement, dated August&nbsp;28, 2006 between Putnam OTC
    and Emerging Growth Fund; TH&nbsp;Lee, Putnam Emerging
    Opportunities Portfolio; Putnam Technology Fund; Putnam World
    Trust&nbsp;II&nbsp;&#151; Putnam Emerging Information Sciences
    Fund; Putnam Discovery Growth Fund; EMC Investment Corporation;
    Van Wagoner Crossover Fund, L.P.; Van Wagoner Capital Partners,
    L.P.; Wheatley Partners&nbsp;III, L.P.; Wheatley Associates
    III,&nbsp;L.P.; Sprout IX Plan Investors, L.P.; Sprout
    Entrepreneurs Fund, L.P.; Sprout Capital IX, L.P.; DLJ Capital
    Corporation; Camelot Capital L.P.; Camelot Capital II&nbsp;L.P.;
    Camelot Offshore Fund Limited 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: 3pt; 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: 2pt; 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">
    Amended version filed herewith.</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="97%"></TD>
</TR>

<TR valign="top">
    <TD>**&nbsp;</TD>
    <TD align="left">
    Previously filed.</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 but updated version filed herewith.</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>&#134;</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>

</TABLE>
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</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-1.1
<SEQUENCE>2
<FILENAME>y24537a5exv1w1.txt
<DESCRIPTION>EX-1.1: FORM OF UNDERWRITING AGREEMENT
<TEXT>
<PAGE>


                                                                     EXHIBIT 1.1


                                11,111,111 SHARES

                             COMMVAULT SYSTEMS, INC.

                                  COMMON STOCK

                             UNDERWRITING AGREEMENT


                                                             September [o], 2006


Credit Suisse Securities (USA) LLC
     Eleven Madison Avenue
         New York, N.Y. 10010-3629

Goldman, Sachs & Co.
     85 Broad Street
         New York, N.Y. 10004

As Representatives of the Several Underwriters

Dear Sirs:


         1. Introductory. CommVault Systems, Inc., a Delaware corporation
("COMPANY"), proposes to issue and sell 6,148,148 shares of its Common Stock,
par value $0.01 per share ("SECURITIES"), and the stockholders listed in
Schedule A hereto ("SELLING STOCKHOLDERS") propose severally to sell an
aggregate of 4,962,963 outstanding shares of the Securities (such 11,111,111
shares of Securities being hereinafter referred to as the "FIRM SECURITIES"), to
the Underwriters (as defined below), for whom Credit Suisse Securities (USA) LLC
and Goldman, Sachs & Co. are acting as representatives ("REPRESENTATIVES").
Certain of the Selling Stockholders also propose to sell to the Underwriters, at
the option of the Underwriters, an aggregate of not more than 1,666,667
additional outstanding shares of the Company's securities (with each Selling
Stockholder selling the number of Optional Securities (as defined below) set
forth opposite its name on Schedule A), in each case as set forth below (such
1,666,667 additional shares being hereinafter referred to as the "OPTIONAL
SECURITIES"). The Firm Securities and the Optional Securities are herein
collectively called the "OFFERED SECURITIES". As part of the offering
contemplated by this Agreement, Credit Suisse Securities (USA) LLC (the
"DESIGNATED UNDERWRITER") has agreed to reserve out of the Firm Securities
purchased by it under this Agreement, up to 890,952 shares for sale to the
holders of the Company's Series CC preferred stock (collectively, the
"PARTICIPANTS"), as set forth in the Prospectus (as defined herein) under the
heading "Underwriting" (the "DIRECTED SHARE PROGRAM"). The Firm Securities to be
sold by the Designated Underwriter pursuant to the Directed Share Program (the
"DIRECTED SHARES") will be sold by the Designated Underwriter pursuant to this
Agreement at the public offering price. Any Directed Shares not subscribed for
by 7:00 A.M (Eastern Standard Time) on the day following the business day on
which this Agreement is executed will be offered to the public by the
Underwriters as set forth in the Prospectus. The Company and the Selling
Stockholders hereby agree with the several Underwriters named in Schedule B
hereto ("UNDERWRITERS") as follows:

         2. Representations and Warranties of the Company and the Selling
Stockholders. (a) The Company represents and warrants to, and agrees with, the
several Underwriters that:


<PAGE>


                  (i) A registration statement (No. 333-132550) relating to the
         Offered Securities, including a form of prospectus, has been filed with
         the Securities and Exchange Commission ("COMMISSION") and either (A)
         has been declared effective under the Securities Act of 1933 ("ACT")
         and is not proposed to be amended or (B) is proposed to be amended by
         amendment or post-effective amendment. If such registration statement
         ("INITIAL REGISTRATION STATEMENT") has been declared effective, either
         (A) an additional registration statement ("ADDITIONAL REGISTRATION
         STATEMENT") relating to the Offered Securities may have been filed with
         the Commission pursuant to Rule 462(b) ("RULE 462(b)") under the Act
         and, if so filed, has become effective upon filing pursuant to such
         Rule and the Offered Securities all have been duly registered under the
         Act pursuant to the initial registration statement and, if applicable,
         the additional registration statement or (B) such an additional
         registration statement is proposed to be filed with the Commission
         pursuant to Rule 462(b) and will become effective upon filing pursuant
         to such Rule and upon such filing the Offered Securities will all have
         been duly registered under the Act pursuant to the initial registration
         statement and such additional registration statement. If the Company
         does not propose to amend the initial registration statement or if an
         additional registration statement has been filed and the Company does
         not propose to amend it, and if any post-effective amendment to either
         such registration statement has been filed with the Commission prior to
         the execution and delivery of this Agreement, the most recent amendment
         (if any) to each such registration statement has been declared
         effective by the Commission or has become effective upon filing
         pursuant to Rule 462(c) ("RULE 462(c)") under the Act or, in the case
         of the additional registration statement, Rule 462(b). For purposes of
         this Agreement, "EFFECTIVE TIME" with respect to the initial
         registration statement or, if filed prior to the execution and delivery
         of this Agreement, the additional registration statement means (A) if
         the Company has advised the Representatives that it does not propose to
         amend such registration statement, the date and time as of which such
         registration statement, or the most recent post-effective amendment
         thereto (if any) filed prior to the execution and delivery of this
         Agreement, was declared effective by the Commission or has become
         effective upon filing pursuant to Rule 462(c), or (B) if the Company
         has advised the Representatives that it proposes to file an amendment
         or post-effective amendment to such registration statement, the date
         and time as of which such registration statement, as amended by such
         amendment or post-effective amendment, as the case may be, is declared
         effective by the Commission. If an additional registration statement
         has not been filed prior to the execution and delivery of this
         Agreement but the Company has advised the Representatives that it
         proposes to file one, "EFFECTIVE TIME" with respect to such additional
         registration statement means the date and time as of which such
         registration statement is filed and becomes effective pursuant to Rule
         462(b). "EFFECTIVE DATE" with respect to the initial registration
         statement or the additional registration statement (if any) means the
         date of the Effective Time thereof. The initial registration statement,
         as amended at its Effective Time, including all information contained
         in the additional registration statement (if any) and deemed to be a
         part of the initial registration statement as of the Effective Time of
         the additional registration statement pursuant to the General
         Instructions of the Form on which it is filed and including all
         information (if any) deemed to be a part of the initial registration
         statement as of its Effective Time pursuant to Rule 430A(b) ("RULE
         430A(b)") under the Act, is hereinafter referred to as the "INITIAL
         REGISTRATION STATEMENT". The additional registration statement, as
         amended at its Effective Time, including the contents of the initial
         registration statement incorporated by reference therein and including
         all information (if any) deemed to be a part of the additional
         registration statement as of its Effective Time pursuant to Rule
         430A(b), is hereinafter referred to as the "ADDITIONAL REGISTRATION
         STATEMENT". The Initial Registration Statement and the Additional
         Registration Statement are herein referred to collectively as the
         "REGISTRATION STATEMENTS" and individually as a "REGISTRATION
         STATEMENT". "REGISTRATION STATEMENT" without reference to a time means
         the Registration Statement as of its Effective Time. "REGISTRATION
         STATEMENT" as of any time means the initial registration statement and
         any additional registration statement in the form then filed with the
         Commission, including any amendment thereto and any prospectus deemed
         or retroactively deemed to be a part thereof that has not been
         superseded or modified. For purposes of the previous sentence,
         information contained in a form of prospectus or


                                       2
<PAGE>


         prospectus supplement that is deemed retroactively to be a part of the
         Registration Statement pursuant to Rule 430A shall be considered to be
         included in the Registration Statement as of the time specified in Rule
         430A. "STATUTORY PROSPECTUS" as of any time means the prospectus
         included in the Registration Statement immediately prior to that time,
         including any prospectus deemed to be a part thereof that has not been
         superseded or modified. For purposes of the preceding sentence,
         information contained in a form of prospectus that is deemed
         retroactively to be a part of the Registration Statement pursuant to
         Rule 430A shall be considered to be included in the Statutory
         Prospectus as of the actual time that form of prospectus is filed with
         the Commission pursuant to Rule 424(b) ("RULE 424(b)") under the Act.
         "PROSPECTUS" means the Statutory Prospectus that discloses the public
         offering price and other final terms of the Offered Securities and
         otherwise satisfies Section 10(a) of the Act. "ISSUER FREE WRITING
         PROSPECTUS" means any "issuer free writing prospectus", as defined in
         Rule 433, relating to the Offered Securities in the form filed or
         required to be filed with the Commission or, if not required to be
         filed, in the form retained in the Company's records pursuant to Rule
         433(g). "GENERAL USE ISSUER FREE WRITING PROSPECTUS" means any Issuer
         Free Writing Prospectus that is intended for general distribution to
         prospective investors, as evidenced by its being specified in a
         schedule to this Agreement. "LIMITED USE ISSUER FREE WRITING
         PROSPECTUS" means any Issuer Free Writing Prospectus that is not a
         General Use Issuer Free Writing Prospectus. "APPLICABLE TIME" means
         [o]:00 [a/p]m (Eastern time) on the date of this Agreement.(1)

                  (ii) If the Effective Time of the Initial Registration
         Statement is prior to the execution and delivery of this Agreement: (A)
         on the Effective Date of the Initial Registration Statement, the
         Initial Registration Statement conformed in all material respects to
         the requirements of the Act and the rules and regulations of the
         Commission ("RULES AND REGULATIONS") and did not include any 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, (B) on the Effective Date of the Additional
         Registration Statement (if any), each Registration Statement conformed,
         or will conform, in all material respects to the requirements of the
         Act and the Rules and Regulations and did not include, or will not
         include, any untrue statement of a material fact and did not omit, or
         will not omit, to state any material fact required to be stated therein
         or necessary to make the statements therein not misleading and (C) on
         the date of this Agreement, the Initial Registration Statement and, if
         the Effective Time of the Additional Registration Statement is prior to
         the execution and delivery of this Agreement, the Additional
         Registration Statement each conforms, and at the time of filing of the
         Prospectus pursuant to Rule 424(b) or (if no such filing is required)
         at the Effective Date of the Additional Registration Statement in which
         the Prospectus is included, each Registration Statement and the
         Prospectus will conform, in all material respects to the requirements
         of the Act and the Rules and Regulations, and neither of such documents
         includes, or will include, any untrue statement of a material fact or
         omits, or will omit, to state any material fact required to be stated
         therein or necessary to make the statements therein not misleading. If
         the Effective Time of the Initial Registration Statement is subsequent
         to the execution and delivery of this Agreement: on the Effective Date
         of the Initial Registration Statement, the Initial Registration
         Statement and the Prospectus will conform in all material respects to
         the requirements of the Act and the Rules and Regulations, neither of
         such documents will include any untrue statement of a material fact or
         will omit to state any material fact required to be stated therein or
         necessary to make the statements therein not misleading, and no
         Additional Registration Statement has been or will be filed. The two
         preceding sentences do not apply to statements in or omissions from a
         Registration Statement or the Prospectus based upon written information
         furnished to the Company by any Underwriter through the Representatives
         specifically for use therein, it being understood and agreed that the
         only such information is that described as such in Section 8(c) hereof.


--------
(1) The Applicable Time will be determined by the Representatives on the pricing
date and will be at pricing or shortly thereafter to allow for completion of the
General Disclosure Package.


                                       3
<PAGE>


                  (iii) (A) At the time of filing the Registration Statement and
         (B) at the date of this Agreement, the Company was not and is not an
         "ineligible issuer", as defined in Rule 405.

                  (iv) As of the Applicable Time, neither (A) the General Use
         Issuer Free Writing Prospectus(es) issued at or prior to the Applicable
         Time and the Statutory Prospectus, all considered together
         (collectively, the "GENERAL DISCLOSURE PACKAGE"), nor (B) any
         individual Limited Use Issuer Free Writing Prospectus, when considered
         together with the General Disclosure Package, included any untrue
         statement of a material fact or omitted to state any material fact
         necessary in order to make the statements therein, in the light of the
         circumstances under which they were made, not misleading. The preceding
         sentence does not apply to statements in or omissions from any
         prospectus included in the Registration Statement or any Issuer Free
         Writing Prospectus in reliance upon and in conformity with written
         information furnished to the Company by any Underwriter through the
         Representatives specifically for use therein, it being understood and
         agreed that the only such information furnished by any Underwriter
         consists of the information described as such in Section 8(c) hereof.

                  (v) Each Issuer Free Writing Prospectus, as of its issue date
         and at all subsequent times through the completion of the public offer
         and sale of the Offered Securities or until any earlier date that the
         Company notified or notifies the Representatives as described in the
         next sentence, did not, does not and will not include any information
         that conflicted, conflicts or will conflict with the information then
         contained in the Registration Statement. If at any time following
         issuance of an Issuer Free Writing Prospectus there occurred or occurs
         an event or development as a result of which such Issuer Free Writing
         Prospectus conflicted or would conflict with the information then
         contained in the Registration Statement or included or would include an
         untrue statement of a material fact or omitted or would omit to state a
         material fact necessary in order to make the statements therein, in the
         light of the circumstances prevailing at that subsequent time, not
         misleading, (A) the Company has promptly notified or will promptly
         notify the Representatives and (B) the Company has promptly amended or
         will promptly amend or supplement such Issuer Free Writing Prospectus
         to eliminate or correct such conflict, untrue statement or omission.
         The foregoing two sentences do not apply to statements in or omissions
         from any Issuer Free Writing Prospectus in reliance upon and in
         conformity with written information furnished to the Company by any
         Underwriter through the Representatives specifically for use therein,
         it being understood and agreed that the only such information furnished
         by any Underwriter consists of the information described as such in
         Section 8(c) hereof.

                  (vi) The Company has been duly incorporated and is an existing
         corporation in good standing under the laws of the State of Delaware,
         with power and authority (corporate and other) to own its properties
         and conduct its business as described in the General Disclosure
         Package; and the Company is duly qualified to do business as a foreign
         corporation in good standing in all other jurisdictions in which its
         ownership or lease of property or the conduct of its business requires
         such qualification, except where the failure to be so qualified as a
         foreign corporation would not be reasonably likely to individually or
         in the aggregate have a material adverse effect on the condition
         (financial or other), business, properties or results of operations of
         the Company and its subsidiaries taken as a whole ("MATERIAL ADVERSE
         EFFECT").

                  (vii) Each subsidiary of the Company has been duly
         incorporated and is an existing corporation in good standing under the
         laws of the jurisdiction of its incorporation, with power and authority
         (corporate and other) to own its properties and conduct its business as
         described in the General Disclosure Package; and each subsidiary of the
         Company is duly qualified to do business as a foreign corporation in
         good standing in all other jurisdictions in which its ownership or
         lease of property or the conduct of its business requires such
         qualification, except where the failure to be so qualified as a foreign
         corporation would not be reasonably likely to individually or in the
         aggregate have a Material Adverse Effect; all of the issued and
         outstanding capital stock of each subsidiary of the Company has been
         duly authorized and validly issued and is fully paid and nonassessable;
         and the capital stock of each subsidiary owned by the Company, directly
         or through


                                       4
<PAGE>


         subsidiaries, is owned free from liens, encumbrances and defects,
         except for liens in connection with the Loan and Security Agreement,
         dated May 2, 2006, as amended, between the Company and Silicon Valley
         Bank, as described in the Prospectus (the "SILICON VALLEY BANK
         AGREEMENT").

                  (viii) The entities listed on Schedule C hereto are the only
         subsidiaries of the Company.

                  (ix) No subsidiary of the Company, as of March 31, 2006, was a
         "significant subsidiary" of the Company within the meaning of
         Regulation S-X under the Act.

                  (x) The Offered Securities to be sold by the Company have been
         duly authorized, and, when issued and delivered to the Underwriters
         against payment therefor in accordance with this Agreement on each
         Closing Date (as defined below), such Offered Securities will have
         been, validly issued, fully paid and nonassessable and will conform to
         the description thereof contained in the Prospectus.

                  (xi) The Offered Securities to be sold by the Selling
         Stockholders that are outstanding as of the date hereof and all other
         outstanding shares of capital stock of the Company have been duly
         authorized and validly issued and are fully paid and nonassessable and
         conform to the description thereof contained in the Prospectus.

                  (xii) The stockholders of the Company have no preemptive
         rights with respect to the Offered Securities, other than pursuant to
         (A) the Stockholders Agreement, dated as of May 22, 1996, as amended
         (the "STOCKHOLDERS AGREEMENT"), among the Company and Sprout CEO Fund,
         L.P., DLJ Capital Corporation, 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., DLJ Merchant Banking Partners, L.P.,
         DLJ International Partners, C.V., DLJ Offshore Partners, C.V., DLJ
         Merchant Banking Funding, Inc., DLJ First ESC, L.P., DLJ ESC II, L.P.,
         Thomas J. Barry, Larry Cormier, Randy Fodero, Robert Freiburghouse, Bob
         Gailus, N. Robert Hammer, David H. Ireland, Lou Miceli, Tom Miller and
         Scotty R. Neal; (B) the Purchase Agreement, dated as of April 14, 2000,
         by and between the Company and Microsoft Corporation and the other
         purchasers listed therein, relating to the Company's Series AA
         Preferred Stock; (C) the Purchase Agreement, dated as of November 10,
         2000, by and between the Company and EMC Investment Corporation and the
         other purchasers listed therein, relating to the Company's Series BB
         Preferred Stock; (D) the Purchase Agreement, dated as of February 14,
         2002, by and between the Company and the purchasers listed therein,
         relating to the Company's Series CC Preferred Stock; (E) and the
         Purchase Agreement, dated as of September 2, 2003, by and between the
         Company and the purchasers listed therein, relating to the Company's
         Series CC Preferred Stock, which, in each case, have been either waived
         with respect to the issuance of the Offered Securities or will be
         satisfied via a concurrent private placement in the manner described in
         the General Disclosure Package and the Prospectus, and on the First
         Closing Date such preemptive rights shall terminate and be of no
         further force and effect. The Stockholders Agreement will terminate and
         cease to be of any further force and effect on the First Closing Date.

                  (xiii) Except as disclosed in the General Disclosure Package
         and the Prospectus, there are no contracts, agreements or
         understandings between the Company and any person that would give rise
         to a valid claim against the Company or any Underwriter for a brokerage
         commission, finder's fee or other like payment in connection with this
         offering.

                  (xiv) Other than as contained in (A) the Stockholders
         Agreement; (B) the Amended and Restated Registration Rights Agreement,
         dated as of September 2, 2003 (the "SERIES AA AMENDED AND RESTATED
         REGISTRATION RIGHTS AGREEMENT"), among the Company and the parties
         listed therein, regarding the Company's Series AA Preferred Stock; (C)
         the Amended and Restated Registration Rights Agreement, dated as of
         September 2, 2003 (the "SERIES BB AMENDED AND RESTATED REGISTRATION
         RIGHTS AGREEMENT"), among the Company and the parties listed therein,


                                       5
<PAGE>


         regarding the Company's Series BB Preferred Stock; (D) the Amended and
         Restated Registration Rights Agreement, dated as of September 2, 2003
         (the "SERIES CC AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT"),
         among the Company and the parties listed therein, regarding the
         Company's Series CC Preferred Stock; and (E) the Registration Rights
         Agreement, dated as of the First Closing Date (the "NEW REGISTRATION
         RIGHTS AGREEMENT") among the Company and the parties listed therein
         relating to the Securities, there are no contracts, agreements or
         understandings between the Company and any person granting such person
         the right to require the Company to file a registration statement under
         the Act with respect to any securities of the Company owned or to be
         owned by such person or to require the Company to include such
         securities in the securities registered pursuant to a Registration
         Statement or in any securities being registered pursuant to any other
         registration statement filed by the Company under the Act.

                  (xv) The Offered Securities have been approved for listing on
         The Nasdaq Stock Market's National Market subject to notice of
         issuance.

                  (xvi) No consent, approval, authorization, or order of, or
         filing with, any governmental agency or body or any court is required
         to be obtained or made by the Company for the consummation of the
         transactions contemplated by this Agreement in connection with the sale
         of the Offered Securities, except such as have been obtained and made
         under the Act and from the National Association of Securities Dealers,
         Inc. ("NASD") and such as may be required under state securities laws.

                  (xvii) The execution, delivery and performance of this
         Agreement, and the consummation of the transactions herein contemplated
         will not result in a breach or violation of any of the terms and
         provisions of, or constitute a default under (A) any statute, any rule,
         regulation or order of any governmental agency or body or any court,
         domestic or foreign, having jurisdiction over the Company or any
         subsidiary of the Company or any of their properties, or (B) any
         agreement or instrument to which the Company or any such subsidiary is
         a party or by which the Company or any such subsidiary is bound or to
         which any of the properties of the Company or any such subsidiary is
         subject, provided, however, in each of (A) and (B), except as would not
         reasonably be expected to individually or in the aggregate have a
         Material Adverse Effect or materially adversely affect the ability of
         the Company and its subsidiaries to consummate the transactions
         contemplated hereby, or (C) the charter, by-laws or similar
         organizational document of the Company or any such subsidiary, and the
         Company has full power and authority to authorize, issue and sell the
         Offered Securities as contemplated by this Agreement.

                  (xviii) This Agreement has been duly authorized, executed and
         delivered by the Company.

                  (xix) Except as disclosed in the General Disclosure Package
         and the Prospectus, the Company and its subsidiaries have good and
         marketable title to all real properties and all other material
         properties and assets owned by them, in each case free from liens,
         encumbrances and defects that would materially affect the value thereof
         or materially interfere with the use made or to be made thereof by
         them, with the exception of liens in connection with the Silicon Valley
         Bank Agreement and all purchase money security interests; and except as
         disclosed in the General Disclosure Package and the Prospectus, the
         Company and its subsidiaries hold any leased real or material personal
         property under valid and enforceable leases with no exceptions that
         would materially interfere with the use made or to be made thereof by
         them.

                  (xx) The Company and its subsidiaries possess adequate
         certificates, authorities or permits issued by appropriate governmental
         agencies or bodies necessary to conduct the business now operated by
         them and have not received any notice of proceedings relating to the
         revocation or modification of any such certificate, authority or permit
         that, if determined adversely to the Company or any of its
         subsidiaries, would reasonably be expected to individually or in the
         aggregate have a Material Adverse Effect.


                                       6
<PAGE>


                  (xxi) No labor dispute with the employees of the Company or
         any subsidiary exists or, to the knowledge of the Company, is imminent
         that would reasonably be expected to individually or in the aggregate
         have a Material Adverse Effect.

                  (xxii) Except as disclosed in the General Disclosure Package
         and the Prospectus, the Company and its subsidiaries own, possess or
         can acquire on reasonable terms adequate trademarks, trade names and
         other rights to inventions, know-how, patents, copyrights, confidential
         information and other intellectual property (collectively,
         "INTELLECTUAL PROPERTY RIGHTS") necessary to conduct the business now
         operated by them, or presently employed by them, and have not received
         any notice of infringement of or conflict with asserted rights of
         others with respect to any intellectual property rights that, if
         determined adversely to the Company or any of its subsidiaries, would
         reasonably be expected to individually or in the aggregate have a
         Material Adverse Effect.

                  (xxiii) Except as disclosed in the General Disclosure Package
         and the Prospectus, to the knowledge of the Company, neither the
         Company nor any of its subsidiaries is in violation of any statute, any
         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"), owns or operates
         any real property contaminated with any substance that is subject to
         any environmental laws, is liable for any off-site disposal or
         contamination pursuant to any environmental laws, or is 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 which might lead to such a claim.

                  (xxiv) Except as disclosed in the General Disclosure Package
         and the Prospectus, there are no pending actions, suits or proceedings
         against or affecting the Company, any of its subsidiaries or any of
         their respective properties that, if determined adversely to the
         Company or any of its subsidiaries, would reasonably be expected to
         individually or in the aggregate have a Material Adverse Effect, or
         would reasonably be expected to materially and adversely affect the
         ability of the Company to perform its obligations under this Agreement,
         or which are otherwise material in the context of the sale of the
         Offered Securities; and no such actions, suits or proceedings are
         threatened or, to the Company's knowledge, contemplated.

                  (xxv) The financial statements included in each Registration
         Statement and the General Disclosure Package and the Prospectus present
         fairly the financial position of the Company and its consolidated
         subsidiaries as of the dates shown and their results of operations and
         cash flows for the periods shown, and such financial statements have
         been prepared in conformity with generally accepted accounting
         principles in the United States applied on a consistent basis; and the
         schedules included in each Registration Statement present fairly the
         information required to be stated therein.

                  (xxvi) Except as disclosed in the General Disclosure Package
         and the Prospectus, since the date of the latest audited financial
         statements included in the General Disclosure Package and the
         Prospectus there has been no material adverse change, nor any
         development or event that individually or in the aggregate would
         reasonably be expected to result in a prospective material adverse
         change, in the condition (financial or other), business, properties or
         results of operations of the Company and its subsidiaries taken as a
         whole, and, except as disclosed in or contemplated by the General
         Disclosure Package and the Prospectus, there has been no dividend or
         distribution of any kind declared, paid or made by the Company on any
         class of its capital stock.

                  (xxvii) The Company (A) makes and keeps accurate books and
         records and (B) maintains a system of internal accounting controls
         sufficient to provide reasonable assurance that (w) transactions are
         executed in accordance with management's general or specific
         authorizations, (x) transactions are recorded as necessary to permit
         preparation of the Company's financial


                                       7
<PAGE>


         statements in conformity with accounting principles generally accepted
         in the United States and to maintain accountability for its assets, (y)
         access to the Company's assets is permitted only in accordance with
         management's general or specific authorization and (z) the recorded
         accountability for the Company's assets is compared with existing
         assets at reasonable intervals and appropriate action is taken with
         respect to any differences.

                  (xxviii) The Company will be in compliance, in all material
         respects, with the applicable provisions of the Sarbanes-Oxley Act of
         2002 and the applicable rules and regulations thereunder upon the
         applicability of such provisions, rules or regulations, as the case may
         be, to the Company.

                  (xxix) The Company and its subsidiaries have not, nor, to the
         knowledge of the Company, has any director, officer, agent, employee or
         other person associated with or acting on behalf of the Company or its
         subsidiaries, (A) taken any action, directly or indirectly, that would
         result in a violation by such persons of the Foreign Corrupt Practices
         Act of 1977, as amended, and the rules and regulations thereunder (the
         "FCPA") or (B) used any of the funds of the Company or its subsidiaries
         with an unlawful purpose or in an unlawful manner for any contribution,
         gift, entertainment or other expense relating to political activity or
         as a means to permit the operation of the Company or any of its
         subsidiaries or to obtain any concession in contravention of any
         applicable law, made any direct or indirect payment to any foreign or
         domestic government official (or "FOREIGN OFFICIAL", as such term is
         defined in the FCPA) or employee in contravention of any applicable law
         from any of the funds of the Company or its subsidiaries, or made any
         bribe, rebate, payoff, influence payment, kickback or other unlawful
         payment in contravention of any applicable law and (C) to the knowledge
         of the Company, its affiliates have conducted their businesses in
         compliance with the FCPA and have instituted and maintain policies and
         procedures designed to ensure, and which are reasonably expected to
         continue to ensure, continued compliance therewith.

                  (xxx) The operations of the Company and its subsidiaries are
         and have been conducted at all times in compliance in all material
         respects with applicable financial recordkeeping and reporting
         requirements of the Currency and Foreign Transactions Reporting Act of
         1970, as amended, the money laundering statutes of all jurisdictions,
         the rules and regulations thereunder and any related or similar rules,
         regulations or guidelines, issued, administered or enforced by any
         governmental agency (collectively, the "MONEY LAUNDERING LAWS") and no
         action, suit or proceeding by or before any court or governmental
         agency, authority or body or any arbitrator involving the Company or
         any of its subsidiaries with respect to the Money Laundering Laws is
         pending or, to the best knowledge of the Company, threatened.

                  (xxxi) Neither the Company nor any of its subsidiaries nor, to
         the knowledge of the Company, any director, officer, agent, employee or
         affiliate of the Company or any of its subsidiaries is currently
         subject to any U.S. sanctions administered by the Office of Foreign
         Assets Control of the U.S. Treasury Department ("OFAC"); and the
         Company will not directly or indirectly use the proceeds of the
         offering, or lend, contribute or otherwise make available such proceeds
         to any subsidiary, joint venture partner or other person or entity, for
         the purpose of financing the activities of any person currently subject
         to any U.S. sanctions administered by OFAC.

                  (xxxii) The Company is not and, after giving effect to the
         offering and sale of the Offered Securities and the application of the
         proceeds thereof as described in the General Disclosure Package and the
         Prospectus, will not be an "investment company" or a "business
         development company" as defined in the Investment Company Act of 1940.

                  (xxxiii) The Company represents and warrants to the
         Underwriters that (A) the Registration Statement, the Prospectus, any
         Statutory Prospectus and any Issuer Free Writing Prospectus comply, and
         any further amendments or supplements thereto will comply, with any
         applicable laws or regulations of foreign jurisdictions in which the
         Prospectus, any Statutory Prospectus or any Issuer Free Writing
         Prospectus, as amended or supplemented, if applicable, are distributed
         in


                                       8
<PAGE>


         connection with the Directed Share Program, and that (B) no
         authorization, approval, consent, license, order, registration or
         qualification of or with any government, governmental instrumentality
         or court, other than such as have been obtained, is necessary under the
         securities law and regulations of foreign jurisdictions in which the
         Directed Shares are offered outside the United States.

                  (xxxiv) The Company has not offered, or caused the
         Underwriters to offer, any Offered Securities to any person pursuant to
         the Directed Share Program other than the holders of the Company's
         Series CC preferred stock in the manner described in the General
         Disclosure Package and the Prospectus.

         (b) Each Selling Stockholder, severally and not jointly, represents and
warrants to, and agrees with, the several Underwriters that:

                  (i) Such Selling Stockholder has, or, with respect to each
         Selling Stockholder established in the Netherlands Antilles, one or
         more of its general partners has or, as applicable, all general
         partners have, and on each Closing Date hereinafter mentioned will have
         valid and unencumbered title to the Offered Securities to be delivered
         by such Selling Stockholder on such Closing Date and full right, power
         and authority to enter into this Agreement and to sell, assign,
         transfer and deliver the Offered Securities to be delivered by such
         Selling Stockholder on such Closing Date hereunder; and upon the
         delivery of and payment for the Offered Securities on each Closing Date
         hereunder, such Selling Stockholder will convey to the several
         Underwriters valid and unencumbered title to the Offered Securities to
         be delivered by such Selling Stockholder on such Closing Date.

                  (ii) If the Effective Time of the Initial Registration
         Statement is prior to the execution and delivery of this Agreement: (A)
         on the Effective Date of the Initial Registration Statement, the
         Initial Registration Statement conformed in all respects to the
         requirements of the Act and the Rules and Regulations and did not
         include any 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, (B) on the Effective Date of the
         Additional Registration Statement (if any), each Registration Statement
         conformed, or will conform, in all respects to the requirements of the
         Act and the Rules and Regulations and did not include, or will not
         include, any untrue statement of a material fact and did not omit, or
         will not omit, to state any material fact required to be stated therein
         or necessary to make the statements therein not misleading and (C) on
         the date of this Agreement, the Initial Registration Statement and, if
         the Effective Time of the Additional Registration Statement is prior to
         the execution and delivery of this Agreement, the Additional
         Registration Statement each conforms, and at the time of filing of the
         Prospectus pursuant to Rule 424(b) or (if no such filing is required)
         at the Effective Date of the Additional Registration Statement in which
         the Prospectus is included, each Registration Statement and the
         Prospectus will conform, in all respects to the requirements of the Act
         and the Rules and Regulations, and neither of such documents includes,
         or will include, any untrue statement of a material fact or omits, or
         will omit, to state any material fact required to be stated therein or
         necessary to make the statements therein not misleading. If the
         Effective Time of the Initial Registration Statement is subsequent to
         the execution and delivery of this Agreement: on the Effective Date of
         the Initial Registration Statement, the Initial Registration Statement
         and the Prospectus will conform in all respects to the requirements of
         the Act and the Rules and Regulations, neither of such documents will
         include any untrue statement of a material fact or will omit to state
         any material fact required to be stated therein or necessary to make
         the statements therein not misleading. Notwithstanding the foregoing,
         the representation and warranty in this section 2(b)(ii) shall apply
         only to the extent that any failure to conform or statements in or
         omissions from a Registration Statement or the Prospectus are made in
         reliance upon and in conformity with written information furnished to
         the Company by such Selling Stockholder specifically for use therein;
         it being understood that the only such information furnished in writing
         to the Company by such Selling Stockholder specifically for


                                       9
<PAGE>


         use in a Registration Statement or the Prospectus is that information
         described in Section 8(b) of this Agreement.

                  (iii) As of the Applicable Time, neither (A) the General
         Disclosure Package nor (B) any individual Limited Use Issuer Free
         Writing Prospectus, when considered together with the General
         Disclosure Package, included any untrue statement of a material fact or
         omitted to state any material fact necessary in order to make the
         statements therein, in the light of the circumstances under which they
         were made, not misleading; provided, however, that, notwithstanding the
         foregoing, the representation and warranty in this section 2(b)(iii)
         shall apply only to the extent that any statements in or omissions from
         the General Disclosure Package or any individual Limited Use Issuer
         Free Writing Prospectus are made in reliance upon and in conformity
         with written information furnished to the Company by such Selling
         Stockholder specifically for use therein; it being understood that the
         only such information furnished in writing to the Company by such
         Selling Stockholder specifically for use in the General Disclosure
         Package or any individual Limited Use Issuer Free Writing Prospectus is
         that information described in Section 8(b) of this Agreement.

                  (iv) Except as disclosed in the General Disclosure Package and
         the Prospectus, there are no contracts, agreements or understandings
         between such Selling Stockholder and any person that would give rise to
         a valid claim against such Selling Stockholder or any Underwriter for a
         brokerage commission, finder's fee or other like payment in connection
         with this offering.

                  (v) This Agreement has been duly authorized, executed and
         delivered by or on behalf of such Selling Stockholder.

                  (vi) The execution, delivery and performance of this Agreement
         by or on behalf of such Selling Stockholder and the consummation of the
         transactions herein contemplated will not result in a breach or
         violation of any of the terms and provisions of, or constitute a
         default under, (A) any statute, any rule, regulation or order of any
         governmental agency or body or any court, domestic or foreign, having
         jurisdiction over such Selling Stockholder or any of its properties,
         except as would not, individually or in the aggregate, materially
         adversely affect the ability of such Selling Stockholder to consummate
         the transactions contemplated hereby, (B) any agreement or instrument
         to which such Selling Stockholder is a party or by which such Selling
         Stockholder is bound or to which any of the properties of such Selling
         Stockholder is subject, except as would not, individually or in the
         aggregate, materially adversely affect the ability of such Selling
         Stockholder to consummate the transactions contemplated hereby, or (C)
         if such Selling Stockholder is not an individual or an estate, the
         charter, by-laws or similar organizational documents of such Selling
         Stockholder.

                  (vii) Except in the case of Selling Stockholder Putnam OTC &
         Emerging Growth Fund, if such Selling Stockholder is not an individual
         or an estate, such Selling Stockholder is not and, after giving effect
         to the offering and sale of the Offered Securities and the application
         of the proceeds thereof as described in the Prospectus, will not be an
         "investment company" as defined in the Investment Company Act of 1940.

                  (viii) Except in the case of Selling Stockholders Sprout CEO
         Fund, L.P., DLJ Capital Corporation, Sprout Growth II, L.P., Sprout
         Capital VII, L.P., DLJ Merchant Banking Partners, L.P., DLJ
         International Partners, C.V., DLJ Offshore Partners, C.V., DLJMB
         Funding, Inc., DLJ First ESC, L.P. and DLJ ESC II, L.P. (collectively,
         the "CSFB MERCHANT BANKING SELLING STOCKHOLDERS"), Putnam OTC &
         Emerging Growth Fund and Putnam World Trust II - Putnam Emerging
         Information Sciences Fund (together, the "PUTNAM SELLING STOCKHOLDERS")
         and the executor on behalf of the estate of Scott Mercer (the
         "EXECUTOR"), such Selling Stockholder has, full legal right, power and
         authority, and all authority, and all authorization and approval
         required by law, to enter into (i) a Custody Agreement ("CUSTODY
         AGREEMENT") signed by such Selling Stockholder


                                       10
<PAGE>


         and the Custodian relating to the deposit of the Offered Securities by
         such Selling Stockholder and (ii) a Power of Attorney ("POWER OF
         ATTORNEY") appointing N. Robert Hammer as such Selling Stockholder's
         attorney-in-fact to the extent set forth therein and relating to the
         transactions herein contemplated; and to sell, assign, transfer and
         deliver the Offered Securities to be sold by such Selling Stockholder
         in the manner provided therein.

                  (ix) Except in the case of the CSFB Merchant Banking Selling
         Stockholders, the Putnam Selling Stockholders and the Executor, the
         Power of Attorney and Custody Agreement with respect to such Selling
         Stockholder have been duly authorized, executed and delivered by such
         Selling Stockholder and constitute the valid and binding agreements of
         such Selling Stockholder, enforceable in accordance with their terms,
         subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
         moratorium and similar laws of general applicability relating to or
         affecting creditors' rights and to general equity principles.

                  (x) Except in the case of the CSFB Merchant Banking Selling
         Stockholders and the Putnam Selling Stockholders, the execution,
         delivery and performance of the Custody Agreement with respect to such
         Selling Stockholder and the consummation of the transactions therein
         contemplated will not result in a breach or violation of any of the
         terms and provisions of, or constitute a default under, (A) any
         statute, any rule, regulation or order of any governmental agency or
         body or any court, domestic or foreign, having jurisdiction over such
         Selling Stockholder or any of its properties, except as would not,
         individually or in the aggregate, materially adversely affect its
         ability to consummate the transactions contemplated hereby, (B) any
         agreement or instrument to which such Selling Stockholder is a party or
         by which it is bound or to which any of its properties are subject,
         except as would not , individually or in the aggregate, materially
         adversely affect the ability of such Selling Stockholder to consummate
         the transactions contemplated hereby or (C) if such Selling Stockholder
         is not an individual or an estate, the charter, by-laws or similar
         organizational document of such Selling Stockholder.

         (c) Each of the CSFB Merchant Banking Selling Stockholders and the
Putnam Selling Stockholders represent and warrant to, and agree with, the
several Underwriters that upon payment for the Offered Securities to be sold by
such Selling Stockholder pursuant to this Agreement, delivery of such Offered
Securities, as directed by the Representatives, to Cede & Co. ("CEDE") or such
other nominee as may be designated by the Depository Trust Company ("DTC"),
registration of such Offered Securities in the name of Cede or such other
nominee and the crediting of such Offered Securities on the books of DTC to
securities accounts of the Underwriters (assuming that neither DTC nor any such
Underwriter has notice of any adverse claim (within the meaning of Section 8-105
of the New York Uniform Commercial Code (the "UCC")) to such Offered
Securities), (1) DTC shall be a "protected purchaser" of such Offered Securities
within the meaning of Section 8-303 of the UCC, (2) under Section 8-501 of the
UCC, the Underwriters will acquire a valid security entitlement in respect of
such Offered Securities and (3) no action based on any "adverse claim," within
the meaning of Section 8-102 of the UCC, to such Offered Securities may be
asserted against the Underwriters with respect to such security entitlement; for
purposes of this representation, such Selling Stockholder may assume that when
such payment, delivery and crediting occur, (x) such Offered Securities will
have been registered in the name of Cede or another nominee designated by DTC,
in each case on the Company's share registry in accordance with its certificate
of incorporation, bylaws and applicable law, (y) DTC will be registered as a
"clearing corporation" within the meaning of Section 8-102 of the UCC and (z)
appropriate entries to the accounts of the several Underwriters on the records
of DTC will have been made pursuant to the UCC.

         (d) Selling Stockholder Louis F. Miceli severally represents and
warrants to, and agrees with the several Underwriters that:

                  (i) If the Effective Time of the Initial Registration
         Statement is prior to the execution and delivery of this Agreement: (A)
         on the Effective Date of the Initial Registration Statement, the
         Initial Registration Statement conformed in all material respects to
         the requirements of the Act and


                                       11
<PAGE>


         the Rules and Regulations and did not include any 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, (B)
         on the Effective Date of the Additional Registration Statement (if
         any), each Registration Statement conformed, or will conform, in all
         material respects to the requirements of the Act and the Rules and
         Regulations and did not include, or will not include, any untrue
         statement of a material fact and did not omit, or will not omit, to
         state any material fact required to be stated therein or necessary to
         make the statements therein not misleading and (C) on the date of this
         Agreement, the Initial Registration Statement and, if the Effective
         Time of the Additional Registration Statement is prior to the execution
         and delivery of this Agreement, the Additional Registration Statement
         each conforms, and at the time of filing of the Prospectus pursuant to
         Rule 424(b) or (if no such filing is required) at the Effective Date of
         the Additional Registration Statement in which the Prospectus is
         included, each Registration Statement and the Prospectus will conform,
         in all material respects to the requirements of the Act and the Rules
         and Regulations, and neither of such documents includes, or will
         include, any untrue statement of a material fact or omits, or will
         omit, to state any material fact required to be stated therein or
         necessary to make the statements therein not misleading. If the
         Effective Time of the Initial Registration Statement is subsequent to
         the execution and delivery of this Agreement: on the Effective Date of
         the Initial Registration Statement, the Initial Registration Statement
         and the Prospectus will conform in all material respects to the
         requirements of the Act and the Rules and Regulations, neither of such
         documents will include any untrue statement of a material fact or will
         omit to state any material fact required to be stated therein or
         necessary to make the statements therein not misleading, and no
         Additional Registration Statement has been or will be filed. The two
         preceding sentences do not apply to statements in or omissions from a
         Registration Statement or the Prospectus based upon written information
         furnished to the Company by any Underwriter through the Representatives
         specifically for use therein, it being understood and agreed that the
         only such information is that described as such in Section 8(c) hereof.

                  (ii) As of the Applicable Time, (A) neither the General
         Disclosure Package nor (B) any Limited Use Issuer Free Writing
         Prospectus, when considered together with the General Disclosure
         Package, included any untrue statement of a material fact or omitted to
         state any material fact necessary in order to make the statements
         therein, in the light of the circumstances under which they were made,
         not misleading. The preceding sentence does not apply to statements in
         or omissions from any prospectus included in the Registration Statement
         or any Issuer Free Writing Prospectus in reliance upon and in
         conformity with written information furnished to the Company by any
         Underwriter through the Representatives specifically for use therein,
         it being understood and agreed that the only such information furnished
         by any Underwriter consists of the information described as such in
         Section 8(c) hereof.

         (e) Selling Stockholder the Executor severally represents and warrants
to, and agrees with the several Underwriters that:

                  (i) Samantha Mercer is the sole executor of the estate of
         Scott Mercer and the Executor has, full legal right, power and
         authority, and all authority, and all authorization and approval
         required by law, to enter into (i) a Custody Agreement signed by the
         Executor and the Custodian relating to the deposit of the Offered
         Securities by such Selling Stockholder and (ii) a Power of Attorney
         appointing N. Robert Hammer as the Executor's attorney-in-fact to the
         extent set forth therein and relating to the transactions herein
         contemplated; and to sell, assign, transfer and deliver the Offered
         Securities to be sold by Selling Stockholder in the manner provided
         therein.

                  (ii) The Power of Attorney and Custody Agreement with respect
         to such Selling Stockholder have been duly authorized, executed and
         delivered by the Executor and are valid and binding agreements of such
         Selling Stockholder, enforceable in accordance with their terms,
         subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
         moratorium and similar laws of general applicability relating to or
         affecting creditors' rights and to general equity principles.


                                       12
<PAGE>


                  (iii) All debts, taxes and expenses of the estate of Scott
         Mercer of which the Executor is actually aware on the date of this
         Agreement have been fully paid or provided for.

                  (iv) There is no specific bequest of the Offered Securities to
         be sold by the Executor under the Last Will and Testament of Scott
         Mercer.

         3. Purchase, Sale and Delivery of Offered Securities. On the basis of
the representations, warranties and agreements herein contained, but subject to
the terms and conditions herein contained, the Company and each Selling
Stockholder agree, severally and not jointly, to sell to each Underwriter, and
each Underwriter agrees, severally and not jointly, to purchase from the Company
and each Selling Stockholder, at a purchase price of $[o] per share, that number
of Firm Securities (rounded up or down, as determined by the Representatives in
their discretion, in order to avoid fractions) obtained by multiplying 6,148,148
Firm Securities in the case of the Company and the number of Firm Securities set
forth opposite the name of such Selling Stockholder in Schedule A hereto, in the
case of a Selling Stockholder, in each case by a fraction the numerator of which
is the number of Firm Securities set forth opposite the name of such Underwriter
in Schedule B hereto and the denominator of which is the total number of Firm
Securities.

         Certificates in negotiable form for the Offered Securities to be sold
by EMC Corporation, Microsoft Corporation, Louis F. Miceli, Anand Prahlad,
Suresh P. Reddy and the Executor (collectively, the "CUSTODIAL SELLING
STOCKHOLDERS") hereunder have been placed in custody, for delivery under this
Agreement, under the Custody Agreements made with the Custodian. Each Custodial
Selling Stockholder agrees that the shares represented by the certificates held
in custody for it under the Custody Agreement are subject to the interests of
the Underwriters hereunder, that, except as set forth in the Custody Agreement,
the arrangements made by such Custodial Selling Stockholder for such custody are
to that extent irrevocable, and that, except as set forth in the Custody
Agreement, the obligations of such Custodial Selling Stockholder hereunder shall
not be terminated by operation of law or the occurrence of any other event,
regardless of whether or not the Custodian shall have received notice of such
event or termination.

         The Company, the CSFB Merchant Banking Selling Stockholders, the Putnam
Selling Stockholders and the Custodian will deliver the Firm Securities to the
Representatives for the accounts of the Underwriters, against payment of the
purchase price in Federal (same day) funds by official bank check or checks or
wire transfer to an account at a bank reasonably acceptable to the
Representatives drawn to the order of CommVault Systems, Inc., in the case of
6,148,148 shares of Firm Securities being sold by the Company, CSFB Merchant
Banking Selling Stockholders in the case of 3,295,516 shares of Firm Securities
being sold by the CSFB Merchant Banking Selling Stockholders, Kane & Co. and
Cargolamp & Co. in the case of 417,030 shares of Firm Securities being sold by
the Putnam Selling Stockholders, and the Custodian, for the accounts of the
Custodial Selling Stockholders, in the case of 1,250,417 shares of Firm
Securities being sold by the Custodial Selling Stockholders, at the New York
office of Cravath, Swaine & Moore LLP, at 10:00 A.M., New York time, on
September [o], 2006, or at such other time not later than seven full business
days thereafter as the Representatives and the Company determine, such time
being herein referred to as the "FIRST CLOSING DATE". For purposes of Rule
15c6-1 under the Exchange Act, the First Closing Date (if later than the
otherwise applicable settlement date) shall be the settlement date for payment
of funds and delivery of securities for all the Offered Securities sold pursuant
to the offering. The certificates for the Firm Securities so to be delivered
will be in definitive form, in such denominations and registered in such names
as the Representatives request and will be made available for checking and
packaging at the New York office of Cravath, Swaine & Moore LLP at least 24
hours prior to the First Closing Date.

         In addition, upon written notice from the Representatives given to the
Selling Stockholders from time to time not more than 30 days subsequent to the
date of the Prospectus, the Underwriters may purchase all or less than all of
the Optional Securities at the purchase price per Security to be paid for the
Firm Securities. The CSFB Merchant Banking Selling Stockholders agree, severally
and not jointly, to sell to the Underwriters, and the Underwriters agree,
severally and not jointly, to purchase the Optional Securities. Such Optional
Securities shall be purchased from the CSFB Merchant Banking Selling
Stockholders for the


                                       13
<PAGE>


account of each Underwriter in the same proportion as the number of Firm
Securities set forth opposite such Underwriter's name bears to the total number
of Firm Securities (subject to adjustment by the Representatives to eliminate
fractions) and may be purchased by the Underwriters only for the purpose of
covering over-allotments made in connection with the sale of the Firm
Securities. No Optional Securities shall be sold or delivered unless the Firm
Securities previously have been, or simultaneously are, sold and delivered. The
right to purchase the Optional Securities or any portion thereof may be
exercised from time to time and to the extent not previously exercised may be
surrendered and terminated at any time upon notice by the Representatives to the
Company and the Selling Stockholders.

         Each time for the delivery of and payment for the Optional Securities,
being herein referred to as an "OPTIONAL CLOSING DATE", which may be the First
Closing Date (the First Closing Date and each Optional Closing Date, if any,
being sometimes referred to as a "CLOSING DATE"), shall be determined by the
Representatives and the Company but shall be not later than five full business
days after written notice of election to purchase Optional Securities is given.
The CSFB Merchant Banking Selling Stockholders will deliver the Optional
Securities being purchased on each Optional Closing Date to the Representatives
for the accounts of the several Underwriters, against payment of the purchase
price therefor in Federal (same day) funds by official bank check or checks or
wire transfer to an account at a bank reasonably acceptable to the
Representatives drawn to the order of CSFB Merchant Banking Selling
Stockholders, at the New York office of Cravath, Swaine & Moore LLP. The
certificates for the Optional Securities being purchased on each Optional
Closing Date will be in definitive form, in such denominations and registered in
such names as the Representatives request upon reasonable notice prior to such
Optional Closing Date and will be made available for checking and packaging at
the New York office of Cravath, Swaine & Moore LLP at a reasonable time in
advance of such Optional Closing Date.

         4. Offering by Underwriters. It is understood that the several
Underwriters propose to offer the Offered Securities for sale to the public as
set forth in the Prospectus.

         5. Certain Agreements of the Company. The Company agrees with the
several Underwriters and the Selling Stockholders that:

                  (a) The Company has filed or will file each Statutory
         Prospectus pursuant to and in accordance with Rule 424(b)(1) (or, if
         applicable and consented to by the Representatives, subparagraph (4))
         not later than the second business day following the earlier of the
         date it is first used or the date of this Agreement.

                  (b) If the Effective Time of the Initial Registration
         Statement is prior to the execution and delivery of this Agreement, the
         Company will file the Prospectus with the Commission pursuant to and in
         accordance with subparagraph (1) (or, if applicable and if consented to
         by the Representatives, subparagraph (4)) of Rule 424(b) not later than
         the earlier of (A) the second business day following the execution and
         delivery of this Agreement or (B) the fifteenth business day after the
         Effective Date of the Initial Registration Statement.

                  The Company will advise the Representatives promptly of any
         such filing pursuant to Rule 424(b). If the Effective Time of the
         Initial Registration Statement is prior to the execution and delivery
         of this Agreement and an additional registration statement is necessary
         to register a portion of the Offered Securities under the Act but the
         Effective Time thereof has not occurred as of such execution and
         delivery, the Company will file the additional registration statement
         or, if filed, will file a post-effective amendment thereto with the
         Commission pursuant to and in accordance with Rule 462(b) on or prior
         to 10:00 P.M., New York time, on the date of this Agreement or, if
         earlier, on or prior to the time the Prospectus is printed and
         distributed to any Underwriter, or will make such filing at such later
         date as shall have been consented to by the Representatives.


                                       14
<PAGE>


                  (c) The Company will advise the Representatives promptly of
         any proposal to amend or supplement the initial or any additional
         registration statement as filed or the related prospectus or the
         Initial Registration Statement, the Additional Registration Statement
         (if any) or any Statutory Prospectus and will not effect such amendment
         or supplementation without the Representatives' consent; and the
         Company will also advise the Representatives promptly of the
         effectiveness of each Registration Statement (if its Effective Time is
         subsequent to the execution and delivery of this Agreement) and of any
         amendment or supplementation of a Registration Statement or any
         Statutory Prospectus and of the institution by the Commission of any
         stop order proceedings in respect of a Registration Statement and will
         use its best efforts to prevent the issuance of any such stop order and
         to obtain as soon as possible its lifting, if issued.

                  (d) If, at any time when a prospectus relating to the Offered
         Securities is (or but for the exemption in Rule 172 would be required
         to be) delivered under the Act in connection with sales by any
         Underwriter or dealer, any event occurs as a result of which the
         Prospectus as then amended or supplemented would include an untrue
         statement of a material fact or omit to state any material fact
         necessary to make the statements therein, in the light of the
         circumstances under which they were made, not misleading, or if it is
         necessary at any time to amend the Prospectus to comply with the Act,
         the Company will promptly notify the Representatives of such event and
         will promptly prepare and file with the Commission, at its own expense,
         an amendment or supplement which will correct such statement or
         omission or an amendment which will effect such compliance. Neither the
         Representatives' consent to, nor the Underwriters' delivery of, any
         such amendment or supplement shall constitute a waiver of any of the
         conditions set forth in Section 7. If at any time following issuance of
         an Issuer Free Writing Prospectus there occurred or occurs an event or
         development as a result of which such Issuer Free Writing Prospectus
         conflicted or would conflict with the information contained in the
         Registration Statement relating to the Offered Securities or included
         or would include an untrue statement of a material fact or omitted or
         would omit to state a material fact necessary in order to make the
         statements therein, in the light of the circumstances prevailing at
         that subsequent time, not misleading, the Company will promptly notify
         the Representatives and will promptly amend or supplement, at its own
         expense, such Issuer Free Writing Prospectus to eliminate or correct
         such conflict, untrue statement or omission.

                  (e) As soon as practicable, but not later than the
         Availability Date (as defined below), the Company will make generally
         available to its securityholders an earnings statement covering a
         period of at least 12 months beginning after the Effective Date of the
         Initial Registration Statement (or, if later, the Effective Date of the
         Additional Registration Statement) which will satisfy the provisions of
         Section 11(a) of the Act. For the purpose of the preceding sentence,
         "AVAILABILITY DATE" means the 45th day after the end of the fourth
         fiscal quarter following the fiscal quarter that includes such
         Effective Date, except that, if such fourth fiscal quarter is the last
         quarter of the Company's fiscal year, "AVAILABILITY DATE" means the
         90th day after the end of such fourth fiscal quarter.

                  (f) The Company will furnish to the Representatives copies of
         each Registration Statement (five of which will be photocopies of such
         signed Registration Statement and will include all exhibits), each
         related preliminary prospectus, and, so long as a prospectus relating
         to the Offered Securities is required to be delivered under the Act in
         connection with sales by any Underwriter or dealer, the Prospectus and
         all amendments and supplements to such documents, in each case in such
         quantities as the Representatives reasonably request. The Prospectus
         shall be so furnished on or prior to 3:00 P.M., New York time, on the
         business day following the later of the execution and delivery of this
         Agreement or the Effective Time of the Initial Registration Statement.
         All other documents shall be so furnished as soon as available. The
         Company will pay the expenses of printing and distributing to the
         Underwriters all such documents.

                  (g) The Company will arrange for the qualification of the
         Offered Securities for sale under the laws of such jurisdictions as the
         Representatives designate and will continue such


                                       15
<PAGE>


         qualifications in effect so long as required for the distribution;
         provided, however, that the Company shall not be required to qualify to
         do business, consent to service of process or become subject to
         taxation in any jurisdiction in which it has not already done so.

                  (h) The Company agrees with the several Underwriters that the
         Company will pay all expenses incident to the performance of the
         obligations of the Company and each Selling Stockholder under this
         Agreement, for any filing fees and other expenses (including fees and
         disbursements of counsel) incurred in connection with qualification of
         the Offered Securities for sale under the laws of such jurisdictions as
         the Representatives designate and the printing of memoranda relating
         thereto, for the filing fee incident to the review by the NASD of the
         Offered Securities, for any travel expenses of the Company's officers
         and employees and any other expenses of the Company in connection with
         attending or hosting meetings with prospective purchasers of the
         Offered Securities, including 50% of the cost of any aircraft chartered
         in connection with attending or hosting such meetings, for expenses
         incurred in distributing preliminary prospectuses and the Prospectus
         (including any amendments and supplements thereto) to the Underwriters
         and for expenses incurred for preparing, printing and distributing any
         Issuer Free Writing Prospectuses to investors or prospective investors.

                  (i) For a period of 180 days after the date of the initial
         public offering of the Offered Securities ("FULL LOCK-UP PERIOD"), the
         Company will not offer, sell, contract to sell, pledge or otherwise
         dispose of, directly or indirectly, or file with the Commission a
         registration statement under the Act relating to, any additional shares
         of its Securities or securities convertible into or exchangeable or
         exercisable for any shares of its Securities, or publicly disclose the
         intention to make any such offer, sale, pledge, disposition or filing,
         without the prior written consent of the Representatives, except (i)
         the delivery of 16,019,480 shares of Securities on the Closing Date to
         the holders of the Series A, B, C, D, E, AA, BB or CC Preferred Stock
         of the Company outstanding on the date hereof upon the conversion of
         such shares of Preferred Stock into shares of Securities, (ii) the
         concurrent private placement, as described in the Prospectus, (iii)
         upon the exercise of warrants or options, in each case outstanding on
         the date hereof and (iv) grants of employee stock options pursuant to
         the terms of a plan in effect on the date hereof and issuances of
         Securities pursuant to the exercise of such options. Furthermore, if
         (A) during the last 17 days of the Full Lock-up Period the Company
         releases earnings results or (B) prior to the expiration of the Full
         Lock-up Period, the Company announces that it will release earnings
         results during the 16-day period beginning on the last day of the Full
         Lock-up Period, then, in the case of clauses (A) and (B), the Full
         Lock-up Period will be extended until the expiration of the 18-day
         period beginning on the date of release of the earnings results unless
         the Representatives waive, in writing, such extension. The Company will
         provide the Representatives with notice of any announcement described
         in clause (B) of the preceding sentence that gives rise to an extension
         of the Full Lock-up Period.

                  (j) In connection with the Directed Share Program, the Company
         will ensure that the Directed Shares will be restricted to the extent
         required by the NASD or the NASD rules from sale, transfer, assignment,
         pledge or hypothecation for a period of three months following the date
         of the effectiveness of the Registration Statement. The Designated
         Underwriter will notify the Company as to which Participants will need
         to be so restricted. The Company will direct the transfer agent to
         place stop transfer restrictions upon such securities for such period
         of time.

                  (k) The Company will pay all reasonable fees and disbursements
         of counsel incurred by the Underwriters in connection with the Directed
         Share Program and stamp duties, similar taxes or duties or other taxes,
         if any, incurred by the Underwriters in connection with the Directed
         Share Program.

                  (l) The Company covenants with the Underwriters that the
         Company will comply in all material respects with all applicable
         securities and other applicable laws, rules and regulations in


                                       16
<PAGE>


         each foreign jurisdiction in which the Directed Shares are offered in
         connection with the Directed Share Program.

         6. Free Writing Prospectuses. The Company represents and agrees that,
unless it obtains the prior consent of the Representatives, and each Underwriter
represents and agrees that, unless it obtains the prior consent of the Company
and the Representatives, it has not made and will not make any offer relating to
the Offered Securities that would constitute an Issuer Free Writing Prospectus,
or that would otherwise constitute a "free writing prospectus", as defined in
Rule 405, required to be filed with the Commission. Any such free writing
prospectus consented to by the Company and the Representatives is hereinafter
referred to as a "PERMITTED FREE WRITING PROSPECTUS". The Company represents
that it has treated and agrees that it will treat each Permitted Free Writing
Prospectus as an "issuer free writing prospectus", as defined in Rule 433, and
has complied and will comply with the requirements of Rules 164 and 433
applicable to any Permitted Free Writing Prospectus, including timely Commission
filing where required, legending and record keeping. The Company represents that
it has satisfied and agrees that it will satisfy the conditions in Rule 433 to
avoid a requirement to file with the Commission any electronic road show.

         7. Conditions of the Obligations of the Underwriters. The obligations
of the several Underwriters to purchase and pay for the Firm Securities on the
First Closing Date and the Optional Securities to be purchased on each Optional
Closing Date will be subject to the accuracy of the representations and
warranties on the part of the Company and the Selling Stockholders herein, to
the accuracy of the statements of Company officers made pursuant to the
provisions hereof, to the performance by the Company and the Selling
Stockholders of their obligations hereunder and to the following additional
conditions precedent:

                  (a) The Representatives shall have received a letter, dated
         the date of delivery thereof (which, if the Effective Time of the
         Initial Registration Statement is prior to the execution and delivery
         of this Agreement, shall be on or prior to the date of this Agreement
         or, if the Effective Time of the Initial Registration Statement is
         subsequent to the execution and delivery of this Agreement, shall be
         prior to the filing of the amendment or post-effective amendment to the
         registration statement to be filed shortly prior to such Effective
         Time), of Ernst & Young LLP in form and substance satisfactory to the
         Representatives, concerning the financial information with respect to
         the Company set forth in the Registration Statements and the General
         Disclosure Package.

         For purposes of this subsection, (i) if the Effective Time of the
         Initial Registration Statement is subsequent to the execution and
         delivery of this Agreement, "REGISTRATION STATEMENTS" shall mean the
         initial registration statement as proposed to be amended by the
         amendment or post-effective amendment to be filed shortly prior to its
         Effective Time, (ii) if the Effective Time of the Initial Registration
         Statement is prior to the execution and delivery of this Agreement but
         the Effective Time of the Additional Registration Statement is
         subsequent to such execution and delivery, "REGISTRATION STATEMENTS"
         shall mean the Initial Registration Statement and the additional
         registration statement as proposed to be filed or as proposed to be
         amended by the post-effective amendment to be filed shortly prior to
         its Effective Time, and (iii) "PROSPECTUS" shall mean the prospectus
         included in the Registration Statements.

                  (b) If the Effective Time of the Initial Registration
         Statement is not prior to the execution and delivery of this Agreement,
         such Effective Time shall have occurred not later than 10:00 P.M., New
         York time, on the date of this Agreement or such later date as shall
         have been consented to by the Representatives. If the Effective Time of
         the Additional Registration Statement (if any) is not prior to the
         execution and delivery of this Agreement, such Effective Time shall
         have occurred not later than 10:00 P.M., New York time, on the date of
         this Agreement or, if earlier, the time the Prospectus is printed and
         distributed to any Underwriter, or shall have occurred at such later
         date as shall have been consented to by the Representatives. If the
         Effective Time of the Initial Registration Statement is prior to the
         execution and delivery of this Agreement, the Prospectus shall have
         been filed with the Commission in accordance with the Rules and
         Regulations and


                                       17
<PAGE>


         Section 5(b) of this Agreement. Prior to such Closing Date, no stop
         order suspending the effectiveness of a Registration Statement shall
         have been issued and no proceedings for that purpose shall have been
         instituted or, to the knowledge of any Selling Stockholder, the Company
         or the Representatives, shall be contemplated by the Commission.


                  (c) Subsequent to the execution and delivery of this
         Agreement, there shall not have occurred (i) any change, or any
         development or event involving a prospective change, in the condition
         (financial or other), business, properties or results of operations of
         the Company and its subsidiaries taken as one enterprise which, in the
         reasonable judgment of a majority in interest of the Underwriters
         including the Representatives, is material and adverse and makes it
         impractical or inadvisable to proceed with completion of the public
         offering or the sale of and payment for the Offered Securities; (ii)
         any downgrading in the rating of any debt securities or preferred stock
         of the Company by any "nationally recognized statistical rating
         organization" (as defined for purposes of Rule 436(g) under the Act),
         or any public announcement that any such organization has under
         surveillance or review its rating of any debt securities or preferred
         stock of the Company (other than an announcement with positive
         implications of a possible upgrading, and no implication of a possible
         downgrading, of such rating); (iii) any change in U.S. or international
         financial, political or economic conditions as would, in the judgment
         of a majority in interest of the Underwriters including the
         Representatives, be likely to prejudice materially the success of the
         proposed issue, sale or distribution of the Offered Securities, whether
         in the primary market or in respect of dealings in the secondary
         market; (iv) any material suspension or material limitation of trading
         in securities generally on the New York Stock Exchange, or any setting
         of minimum prices for trading on such exchange; (v) any suspension of
         trading of any securities of the Company on any exchange or in the
         over-the-counter market; (vi) any banking moratorium declared by U.S.
         Federal or New York authorities; (vii) any major disruption of
         settlements of securities or clearance services in the United States;
         or (viii) any attack on, outbreak or escalation of hostilities or act
         of terrorism involving the United States, any declaration of war by
         Congress or any other national or international calamity or emergency
         if, in the reasonable judgment of a majority in interest of the
         Underwriters including the Representatives, the effect of any such
         attack, outbreak, escalation, act, declaration, calamity or emergency
         makes it impractical or inadvisable to proceed with completion of the
         public offering or the sale of and payment for the Offered Securities.

                  (d) The Representatives shall have received an opinion, dated
         such Closing Date, of Mayer, Brown, Rowe & Maw LLP, counsel for the
         Company, to the effect that:

                           (i) The Company has been duly incorporated and is an
                  existing corporation in good standing under the laws of the
                  State of Delaware, with corporate power and authority to own
                  its properties and conduct its business as described in each
                  of the Prospectus and the General Disclosure Package; and the
                  Company is duly qualified to do business as a foreign
                  corporation in good standing in all other jurisdictions in
                  which its ownership or lease of property or the conduct of its
                  business requires such qualification, except where the failure
                  to be so qualified would not reasonably be expected to
                  individually or in the aggregate have a Material Adverse
                  Effect;

                           (ii) The Offered Securities delivered on such Closing
                  Date and all other outstanding shares of the Common Stock of
                  the Company have been duly authorized and validly issued, are
                  fully paid and nonassessable and conform in all material
                  respects to the description thereof contained in the
                  Prospectus; and the stockholders of the Company have no
                  statutory preemptive rights or, to the knowledge of such
                  counsel, contractual preemptive rights, in each case with
                  respect to the Securities other than those preemptive rights
                  described in Section 2(a)(xii) above;

                           (iii) Other than as contained in the Stockholders
                  Agreement, the Series AA Amended and Restated Registration
                  Rights Agreement, the Series BB Amended and Restated


                                       18
<PAGE>


                  Registration Rights Agreement, the Series CC Amended and
                  Restated Registration Rights Agreement and the New
                  Registration Rights Agreement, there are no contracts,
                  agreements or understandings known to such counsel between the
                  Company and any person granting such person the right to
                  require the Company to file a registration statement under the
                  Act with respect to any securities of the Company owned or to
                  be owned by such person or to require the Company to include
                  such securities in the securities registered pursuant to the
                  Registration Statement or in any securities being registered
                  pursuant to any other registration statement filed by the
                  Company under the Act;

                           (iv) No consent, approval, authorization or order of,
                  or filing with, any governmental agency or body or any court
                  is required to be obtained or made by the Company or, to the
                  knowledge of such counsel, any Selling Stockholder for the
                  consummation of the transactions contemplated by this
                  Agreement or the Custody Agreement in connection with the sale
                  of the Offered Securities, except such as have been obtained
                  and made under the Act and such as may be required under state
                  securities laws and the rules of the NASD;

                           (v) The execution, delivery and performance of this
                  Agreement or the Custody Agreement by the Company and the
                  consummation of the transactions herein or therein
                  contemplated will not result in a breach or violation of any
                  of the terms and provisions of, or constitute a default under,
                  any provision of applicable federal or state law or regulation
                  that in such counsel's experience is normally applicable to
                  general business corporations in relation to transactions of
                  the type contemplated by this Agreement, or any agreement or
                  instrument of which such counsel has knowledge to which the
                  Company or any such subsidiary is a party or by which the
                  Company or any such subsidiary is bound or to which any of the
                  properties of the Company or any such subsidiary is subject,
                  except in each case as would not reasonably be expected to
                  individually or in the aggregate have a Material Adverse
                  Effect, or the charter or by-laws of the Company or any such
                  subsidiary; and the Company has full power and authority to
                  authorize, issue and sell the Offered Securities as
                  contemplated by this Agreement;

                           (vi) Such counsel was notified by a member of the
                  staff of the Commission that the Initial Registration
                  Statement was declared effective under the Act as of the date
                  and time specified in such opinion, the Additional
                  Registration Statement (if any) was filed and became effective
                  under the Act as of the date and time (if determinable)
                  specified in such opinion, the Prospectus either was filed
                  with the Commission pursuant to the subparagraph of Rule
                  424(b) specified in such opinion on the date specified therein
                  or was included in the Initial Registration Statement or the
                  Additional Registration Statement (as the case may be), and,
                  to the knowledge of such counsel, no stop order suspending the
                  effectiveness of a Registration Statement or any part thereof
                  has been issued and no proceedings for that purpose have been
                  instituted or are pending or contemplated under the Act, and
                  each Registration Statement and the Prospectus, and each
                  amendment or supplement thereto, as of their respective
                  effective or issue dates, complied as to form in all material
                  respects with the requirements of the Act and the Rules and
                  Regulations; no facts shall have come to the attention of such
                  counsel that have caused such counsel to believe that the
                  Registration Statement or any amendment thereto, as of the
                  latest effective date, contained any untrue statement of a
                  material fact or omitted to state any material fact necessary
                  in order to make the statements therein not misleading; that
                  the General Disclosure Package, as of the Applicable Time,
                  contained any untrue statement of a material fact or omitted
                  to state any material fact required to be stated therein or
                  necessary to make the statements therein, in the light of the
                  circumstances under which they were made, not misleading; or
                  that the Prospectus or any amendment or supplement thereto, as
                  of its issue date or as of such Closing Date, contained any
                  untrue statement of a material fact or omitted to state any
                  material fact necessary in order to make the statements
                  therein, in the light of the circumstances under which they
                  were


                                       19
<PAGE>


                  made, not misleading; the descriptions in the Registration
                  Statements, the General Disclosure Package and Prospectus of
                  statutes, legal and governmental proceedings and contracts and
                  other documents are accurate and fairly present the
                  information required to be shown; and such counsel does not
                  know of any legal or governmental proceedings required to be
                  described in a Registration Statement, the General Disclosure
                  Package or the Prospectus which are not described as required
                  or of any contracts or documents of a character required to be
                  described in a Registration Statement, the General Disclosure
                  Package or the Prospectus or to be filed as exhibits to a
                  Registration Statement which are not described and filed as
                  required; it being understood that such counsel need express
                  no opinion as to the financial statements or other financial
                  data contained in the Registration Statements, the General
                  Disclosure Package or the Prospectus;

                           (vii) This Agreement has been duly authorized,
                  executed and delivered by the Company; and

                           (viii) The Company is not as of the Applicable Time
                  and, after giving effect to the offering and sale of the
                  Offered Securities and the application of the proceeds thereof
                  as described in the Prospectus, will not be an "investment
                  company" or a "business development company" as defined in the
                  Investment Company Act of 1940.

                  (e) The Representatives shall have received an opinion, dated
         such Closing Date, of John Seethoff, Deputy General Counsel of Selling
         Stockholder Microsoft Corporation, to the effect that:

                           (i) Such Selling Stockholder has been duly
                  incorporated and is an existing corporation in good standing
                  under the laws of the State of Washington;

                           (ii) Such Selling Stockholder had valid and
                  unencumbered title to the Offered Securities delivered by such
                  Selling Stockholder on such Closing Date and had full right,
                  power and authority to sell, assign, transfer and deliver the
                  Offered Securities delivered by such Selling Stockholder on
                  such Closing Date hereunder; and the several Underwriters have
                  acquired valid and unencumbered title to the Offered
                  Securities purchased by them from such Selling Stockholder on
                  such Closing Date hereunder;

                           (iii) No consent, approval, authorization or order
                  of, or filing with, any governmental agency or body or any
                  court is required to be obtained or made by such Selling
                  Stockholder for the consummation of the transactions
                  contemplated by this Agreement, the Custody Agreement or the
                  Power of Attorney in connection with the sale of the Offered
                  Securities sold by such Selling Stockholder, except such as
                  have been obtained and made under the Act and such as may be
                  required under state securities laws;

                           (iv) The execution, delivery and performance of this
                  Agreement, the Custody Agreement and the Power of Attorney and
                  the consummation of the transactions herein and therein
                  contemplated will not result in a breach or violation of any
                  of the terms and provisions of, or constitute a default under,
                  (A) any statute, any rule, regulation or order of any
                  governmental agency or body or any court, domestic or foreign,
                  having jurisdiction over such Selling Stockholder or any of
                  its properties, except as could not reasonably be expected to
                  individually or in the aggregate have a Material Adverse
                  Effect or materially adversely affect its ability to
                  consummate the transactions contemplated hereby, (B) any
                  agreement or instrument to which such Selling Stockholder is a
                  party or by which it is reasonably bound or to which any of
                  its properties are subject, except as could not reasonably be
                  expected to individually or in the aggregate have a Material
                  Adverse Effect or materially adversely affect the ability of
                  such Selling Stockholder to consummate the transactions
                  contemplated hereby or (C) the charter, by-laws or similar
                  organizational document of such Selling Stockholder;


                                       20
<PAGE>


                           (v) The Power of Attorney and Custody Agreement with
                  respect to such Selling Stockholder have been duly authorized,
                  executed and delivered by such Selling Stockholder and are
                  valid and binding obligations of such Selling Stockholder,
                  enforceable in accordance with their terms, subject to
                  bankruptcy, insolvency, fraudulent transfer, reorganization,
                  moratorium and similar laws of general applicability relating
                  to or affecting creditors' rights and to general equity
                  principles;

                           (vi) This Agreement has been duly authorized,
                  executed and delivered by such Selling Stockholder; and

                           (vii) Such Selling Stockholder is not as of the
                  Applicable Time and, after giving effect to the offering and
                  sale of the Offered Securities and the application of the
                  proceeds thereof as described in the Prospectus, will not be
                  an "investment company" as defined in the Investment Company
                  Act of 1940.

                  (f) The Representatives shall have received an opinion, dated
         such Closing Date, of Ropes & Gray LLP, counsel for the Putnam Selling
         Stockholders, substantially in the form of Exhibit A attached hereto.

                  (g) The Representatives shall have received an opinion, dated
         such Closing Date, of Paul T. Dacier, Executive Vice President and
         General Counsel of Selling Stockholder EMC Corporation, to the effect
         that:

                           (i) Such Selling Stockholder has been duly
                  incorporated and is an existing corporation in good standing
                  under the laws of the State of Massachusetts;

                           (ii) Such Selling Stockholder had valid and
                  unencumbered title to the Offered Securities delivered by such
                  Selling Stockholder on such Closing Date and had full right,
                  power and authority to sell, assign, transfer and deliver the
                  Offered Securities delivered by such Selling Stockholder on
                  such Closing Date hereunder; and such Selling Stockholder has
                  conveyed to the several Underwriters valid and unencumbered
                  title to the Offered Securities purchased by them from such
                  Selling Stockholder on such Closing Date hereunder;

                           (iii) No consent, approval, authorization or order
                  of, or filing with, any governmental agency or body or any
                  court is required to be obtained or made by such Selling
                  Stockholder for the consummation of the transactions
                  contemplated by this Agreement, the Custody Agreement or the
                  Power of Attorney in connection with the sale of the Offered
                  Securities sold by such Selling Stockholder, except such as
                  have been obtained and made under the Act and such as may be
                  required under state securities laws;

                           (iv) The execution, delivery and performance of this
                  Agreement, the Custody Agreement and the Power of Attorney and
                  the consummation of the transactions herein and therein
                  contemplated will not result in a breach or violation of any
                  of the terms and provisions of, or constitute a default under,
                  (A) any statute, any rule, regulation or order of any
                  governmental agency or body or any court, domestic or foreign,
                  having jurisdiction over such Selling Stockholder or any of
                  its properties, except as would not, individually or in the
                  aggregate, materially adversely affect its ability to
                  consummate the transactions contemplated hereby, (B) any
                  agreement or instrument to which such Selling Stockholder is a
                  party or by which it is bound or to which any of its
                  properties are subject, except as would not, individually or
                  in the aggregate, materially adversely affect the ability of
                  such Selling Stockholder to consummate the transactions
                  contemplated hereby or (C) the charter, by-laws or similar
                  organizational document of such Selling Stockholder;


                                       21
<PAGE>


                           (v) The Power of Attorney and Custody Agreement with
                  respect to such Selling Stockholder have been duly authorized,
                  executed and delivered by such Selling Stockholder and
                  constitute the valid and binding obligations of such Selling
                  Stockholder, enforceable in accordance with their terms,
                  subject to bankruptcy, insolvency, fraudulent transfer,
                  reorganization, moratorium and similar laws of general
                  applicability relating to or affecting creditors' rights and
                  to general equity principles;

                           (vi) This Agreement has been duly authorized,
                  executed and delivered by such Selling Stockholder; and

                           (vii) Such Selling Stockholder is not as of the
                  Applicable Time and, after giving effect to the offering and
                  sale of the Offered Securities and the application of the
                  proceeds thereof as described in the Prospectus, will not be
                  an "investment company" as defined in the Investment Company
                  Act of 1940.

                  (h) The Representatives shall have received an opinion, dated
         such Closing Date, of Davis Polk & Wardwell, counsel for Selling
         Stockholders DLJ Merchant Banking Partners, L.P., DLJMB Funding, Inc.,
         DLJ First ESC, L.P. and DLJ ESC II, L.P. (collectively, the "DLJ
         SELLING STOCKHOLDERS") and for Selling Stockholders DLJ International
         Partners, C.V. and DLJ Offshore Partners, C.V. (together, the "DLJ
         FOREIGN SELLING STOCKHOLDERS"), to the effect that:

                           (i) Each DLJ Selling Stockholder is validly existing
                  and in good standing as a limited partnership or corporation
                  under the laws of its jurisdiction of formation;

                           (ii) Upon payment for the Offered Securities to be
                  sold by the DLJ Selling Stockholders and the DLJ Foreign
                  Selling Stockholders to each of the several Underwriters as
                  provided in this Agreement, the delivery of such Offered
                  Securities to Cede or such other nominee as may be designated
                  by DTC, the registration of such Offered Securities in the
                  name of Cede or such other nominee and the crediting of such
                  Offered Securities on the records of DTC to security accounts
                  in the name of such Underwriter (assuming that neither DTC nor
                  such Underwriter has notice of any adverse claim (as such
                  phrase is defined in Section 8-105 of the UCC) to such Offered
                  Securities or any security entitlement in respect thereof),
                  (A) DTC shall be a "protected purchaser" of such Offered
                  Securities within the meaning of Section 8-303 of the UCC, (B)
                  under Section 8-501 of the UCC, such Underwriter will acquire
                  a security entitlement in respect of such Offered Securities
                  and (C) to the extent governed by Article 8 of the UCC, no
                  action based on any "adverse claim" (as defined in Section
                  8-102 of the UCC) to such Offered Securities may be asserted
                  against such Underwriter; it being understood that for
                  purposes of this opinion, such counsel has assumed that when
                  such payment, delivery and crediting occur, (x) such Offered
                  Securities will have been registered in the name of Cede or
                  such other nominee as may be designated by DTC, in each case
                  on the Company's share registry in accordance with its
                  certificate of incorporation, bylaws and applicable law, (y)
                  DTC will be registered as a "clearing corporation" within the
                  meaning of Section 8-102 of the UCC and (z) appropriate
                  entries to the securities account or accounts in the name of
                  such Underwriter on the records of DTC will have been made
                  pursuant to the UCC;

                           (iii) Except for such consents, approvals,
                  authorizations, registrations or qualifications as may be
                  required under applicable federal and state securities or blue
                  sky laws, no consent, approval, authorization or order of, or
                  filing or registration with, any court or governmental agency
                  or body having jurisdiction over any DLJ Selling Stockholder
                  or any of their properties or assets is required for the
                  execution, delivery and performance of this Agreement by any
                  of the DLJ Selling Stockholders;


                                       22
<PAGE>


                           (iv) The execution and delivery by each of the DLJ
                  Selling Stockholders of, and the performance by each of the
                  DLJ Selling Stockholders of its obligations under this
                  Agreement will not (x) result in any violation of the
                  provisions of the organizational documents of such DLJ Selling
                  Stockholder or (y) result in any violation of any provision of
                  the laws of the State of New York, the General Corporation Law
                  of the State of Delaware, the Delaware Revised Uniform Limited
                  Partnership Act or the federal laws of the United States of
                  America (other than federal and state securities or blue sky
                  laws, as to which such counsel need not express an opinion
                  pursuant to this clause (iv)) except, in the case of this
                  clause (y), as would not individually or in the aggregate have
                  a material adverse effect on the performance by such DLJ
                  Selling Stockholder of this Agreement; and

                           (v) This Agreement has been duly authorized, executed
                  and delivered by each of the DLJ Selling Stockholders.

                  (i) The Representatives shall have received an opinion, dated
         such Closing Date, of Schulte Roth & Zabel LLP, counsel for Selling
         Stockholders Sprout CEO Fund, L.P., DLJ Capital Corporation, Sprout
         Growth II, L.P. and Sprout Capital VII, L.P. (collectively, the "SPROUT
         SELLING STOCKHOLDERS"), to the effect that:

                           (i) Each Sprout Selling Stockholder is validly
                  existing and in good standing as a limited partnership or
                  corporation under the laws of its jurisdiction of formation;

                           (ii) Upon payment for the Offered Securities to be
                  sold by the Sprout Selling Stockholders to each of the several
                  Underwriters as provided in this Agreement, the delivery of
                  such Offered Securities to Cede or such other nominee as may
                  be designated by DTC, the registration of such Offered
                  Securities in the name of Cede or such other nominee and the
                  crediting of such Offered Securities on the records of DTC to
                  security accounts in the name of such Underwriter (assuming
                  that neither DTC nor such Underwriter has notice of any
                  adverse claim (as such phrase is defined in Section 8-105 of
                  the UCC) to such Offered Securities or any security
                  entitlement in respect thereof), (A) DTC shall be a "protected
                  purchaser" of such Offered Securities within the meaning of
                  Section 8-303 of the UCC, (B) under Section 8-501 of the UCC,
                  such Underwriter will acquire a security entitlement in
                  respect of such Offered Securities and (C) to the extent
                  governed by Article 8 of the UCC, no action based on any
                  "adverse claim" (as defined in Section 8-102 of the UCC) to
                  such Offered Securities may be asserted against such
                  Underwriter; it being understood that for purposes of this
                  opinion, such counsel has assumed that when such payment,
                  delivery and crediting occur, (x) such Offered Securities will
                  have been registered in the name of Cede or such other nominee
                  as may be designated by DTC, in each case on the Company's
                  share registry in accordance with its certificate of
                  incorporation, bylaws and applicable law, (y) DTC will be
                  registered as a "clearing corporation" within the meaning of
                  Section 8-102 of the UCC and (z) appropriate entries to the
                  securities account or accounts in the name of such Underwriter
                  on the records of DTC will have been made pursuant to the UCC;

                           (iii) Except for such consents, approvals,
                  authorizations, registrations or qualifications as may be
                  required under applicable federal and state securities or blue
                  sky laws, no consent, approval, authorization or order of, or
                  filing or registration with, any court or governmental agency
                  or body having jurisdiction over any Sprout Selling
                  Stockholder or any of their properties or assets is required
                  for the execution, delivery and performance of this Agreement
                  by any of the Sprout Selling Stockholders;

                           (iv) The execution and delivery by each of the Sprout
                  Selling Stockholders of, and the performance by each of the
                  Sprout Selling Stockholders of its obligations under this


                                       23
<PAGE>


                  Agreement will not (x) result in any violation of the
                  provisions of the organizational documents of such Sprout
                  Selling Stockholder or (y) result in any violation of any
                  provision of the laws of the State of New York, the General
                  Corporation Law of the State of Delaware, the Delaware Revised
                  Uniform Limited Partnership Act or the federal laws of the
                  United States of America (other than federal and state
                  securities or blue sky laws, as to which such counsel need not
                  express an opinion pursuant to this clause (iv)) except, in
                  the case of this clause (y), as would not individually or in
                  the aggregate have a material adverse effect on the
                  performance by such Sprout Selling Stockholder of this
                  Agreement; and

                           (v) This Agreement has been duly authorized, executed
                  and delivered by each of the Sprout Selling Stockholders.

                  (j) The Representatives shall have received an opinion, dated
         such Closing Date, of De Brauw Blackstone Westbroek New York, counsel
         for the DLJ Foreign Selling Stockholders, to the effect that:


                           (i) Each of the DLJ Foreign Selling Stockholders has
                  been formed and is existing as a limited partnership
                  (commanditaire vennootschappen) under Netherlands Antilles
                  law;



                           (ii) The entry into and performance of this Agreement
                  by each of the DLJ Foreign Selling Stockholders is within its
                  power;


                           (iii) No further action is required to be taken
                  within either of the DLJ Foreign Selling Stockholders to
                  authorize their entry into and performance of this Agreement;

                           (iv) This Agreement has been validly signed on behalf
                  of each of the DLJ Foreign Selling Stockholders;

                           (v) All governmental or regulatory consents,
                  approvals or authorizations required by the DLJ Foreign
                  Selling Stockholders under Netherlands Antilles law for their
                  entry into and performance of this Agreement have been
                  obtained;

                           (vi) Under Netherlands Antilles law there are no
                  registration, filing or similar formalities required to ensure
                  the validity, binding effect and enforceability against each
                  of the DLJ Foreign Selling Stockholders of this Agreement;

                           (vii) The entry into and performance of this
                  Agreement by each of the DLJ Foreign Selling Stockholders does
                  not violate Netherlands Antilles law or its respective
                  partnership agreement;

                           (viii) Under Netherlands Antilles law the choice of
                  New York law as the governing law of this Agreement is
                  recognized and accordingly New York law governs the validity,
                  binding effect and enforceability against each of the DLJ
                  Foreign Selling Stockholders of this Agreement; and

                           (ix) A judgment rendered by a New York court will not
                  be recognized and enforced by the Netherlands Antilles courts.
                  However, if a person has obtained a final and conclusive
                  judgment for the payment of money rendered by a New York court
                  which is enforceable in New York (the "NEW YORK JUDGMENT") and
                  files his claim with the competent Netherlands Antilles court,
                  that Netherlands Antilles court will generally give binding
                  effect to the New York judgment insofar as it finds that the
                  jurisdiction of the New York court has been based on grounds
                  which are internationally acceptable and that


                                       24
<PAGE>


                  proper legal procedures have been observed and unless the New
                  York judgment contravenes Netherlands Antilles public policy.

                  (k) The Representatives shall have received an opinion, dated
         such Closing Date, of Mayer, Brown, Rowe & Maw LLP, counsel for Selling
         Stockholders Louis F. Miceli, Anand Prahlad and Suresh P. Reddy, to the
         effect that:

                           (i) Upon (a) payment for the Offered Securities to be
                  sold by Selling Stockholders Louis F. Miceli, Anand Prahlad
                  and Suresh P. Reddy to each of the several Underwriters as
                  provided in this Agreement, (b) the delivery of such Offered
                  Securities to Cede or such other nominee as may be designated
                  by DTC, (c) the registration of such Offered Securities in the
                  name of Cede or such other nominee and (d) the crediting of
                  such Offered Securities on the records of DTC to security
                  accounts in the name of such Underwriter (A) DTC shall be a
                  "protected purchaser" of such Offered Securities within the
                  meaning of Section 8-303 of the New York UCC, (B) under
                  Section 8-501 of the New York UCC, such Underwriter will
                  acquire a security entitlement in respect of such Offered
                  Securities and (C) to the extent governed by Article 8 of the
                  New York UCC, no action based on any "adverse claim" (as
                  defined in Section 8-102 of the New York UCC) to such Offered
                  Securities may be asserted against such Underwriter; it being
                  understood that for purposes of this opinion, such counsel has
                  assumed that when such payment, delivery and crediting occur,
                  (v) neither DTC nor any such Underwriter has notice of any
                  adverse claim (as such phrase is defined in Section 8-105 of
                  the New York UCC), (w) such Offered Securities will have been
                  registered in the name of Cede or such other nominee as may be
                  designated by DTC, in each case on the Company's share
                  registry in accordance with its certificate of incorporation,
                  bylaws and applicable law, (x) DTC will be registered as a
                  "clearing corporation" within the meaning of Section 8-102 of
                  the New York UCC, (y) DTC shall have agreed with each such
                  Underwriter in whose name a securities account is maintained
                  that it will treat such Underwriter as entitled to exercise
                  the rights that comprise financial assets credited to such
                  account and (z) appropriate entries to the securities account
                  or accounts in the name of such Underwriter on the records of
                  DTC will have been made pursuant to the New York UCC;

                           (ii) The execution, delivery and performance of this
                  Agreement, the Custody Agreement and the Power of Attorney and
                  the consummation of the transactions herein and therein
                  contemplated will not result in a breach or violation of any
                  of the terms and provisions of, or constitute a default under,
                  any provision of applicable federal or state law or regulation
                  that in such counsel's experience is normally applicable to
                  transactions of the type contemplated by this Agreement, the
                  Custody Agreement and the Power of Attorney, except as could
                  not reasonably be expected to have a Material Adverse Effect
                  or materially adversely affect the ability of such Selling
                  Stockholder to consummate the transactions contemplated
                  hereby;

                           (iii) The Power of Attorney and Custody Agreement
                  with respect to such Selling Stockholder have been duly
                  authorized, executed and delivered by such Selling Stockholder
                  and are valid and binding obligations of such Selling
                  Stockholder, enforceable in accordance with their terms,
                  subject to bankruptcy, insolvency, fraudulent transfer,
                  reorganization, moratorium and similar laws of general
                  applicability relating to or affecting creditors' rights and
                  to general equity principles; and

                           (iv) This Agreement has been duly authorized,
                  executed and delivered by such Selling Stockholder.

                  (l) The Representatives shall have received an opinion as to
         matters of Scots law, dated such Closing Date, of Tods Murray LLP,
         Scottish counsel for the Executor, to the effect that:


                                       25
<PAGE>


                  (i) Samantha Mercer is the sole executor of the estate of
         Scott Mercer;

                  (ii) The Executor had power and authority to enter into (A)
         this Agreement, (B) the Custody Agreement and (C) the Power of Attorney
         executed by the Executor;

                  (iii) The Executor had full right, power and authority to
         sell, transfer and deliver the Offered Securities delivered by such
         Selling Stockholder on such Closing Date hereunder;

                  (iv) No consent, approval, authorization or order of, or
         filing with, any governmental agency or body in Scotland or any court
         in Scotland is required to be obtained or made by such Selling
         Stockholder for the consummation of the transactions contemplated by
         this Agreement in connection with the sale of the Offered Securities
         sold by such Selling Stockholder;

                  (v) The execution, delivery and performance of this Agreement
         and the Custody Agreement and the consummation of the transactions
         herein and therein contemplated will not result in a violation of (i)
         any Scottish statute or regulation applicable to the Selling
         Stockholder or the administration of the estate of Scott Mercer or (ii)
         any order of any court or government agency or body in Scotland made in
         respect of the Selling Stockholder or the administration of the estate
         of Scott Mercer. the existence of which order is within the knowledge
         of such counsel, in either case except as could not reasonably be
         expected to individually or in the aggregate have a Material Adverse
         Effect or materially adversely affect its ability to consummate the
         transactions contemplated hereby;

                  (vi) The Power of Attorney and Custody Agreement have been
         duly executed and delivered by the Executor;

                  (vii) This Agreement has been duly executed and delivered by
         the Executor;

                  (viii) All debts, taxes and expenses of such Selling
         Stockholder of which such counsel are aware have been fully paid or
         provided for; and

                  (ix) There is no specific bequest of the Offered Securities to
         be sold by such Selling Stockholder under the Last Will and Testament
         of Scott Mercer.

         The Representatives shall have also received an opinion, dated such
Closing Date, of Mayer, Brown, Rowe & Maw LLP, special U.S. counsel for the
Executor, to the effect that:

                  (i) Upon payment for the Offered Securities to be sold by the
         Executor to each of the several Underwriters as provided in this
         Agreement, the delivery of such Offered Securities to Cede or such
         other nominee as may be designated by DTC, the registration of such
         Offered Securities in the name of Cede or such other nominee and the
         crediting of such Offered Securities on the records of DTC to security
         accounts in the name of such Underwriter (assuming that neither DTC nor
         such Underwriter has notice of any adverse claim (as such phrase is
         defined in Section 8-105 of the UCC) to such Offered Securities or any
         security entitlement in respect thereof), (A) DTC shall be a "protected
         purchaser" of such Offered Securities within the meaning of Section
         8-303 of the UCC, (B) under Section 8-501 of the UCC, such Underwriter
         will acquire a security entitlement in respect of such Offered
         Securities and (C) to the extent governed by Article 8 of the UCC, no
         action based on any "adverse claim" (as defined in Section 8-102 of the
         UCC) to such Offered Securities may be asserted against such
         Underwriter; it being understood that for purposes of this opinion,
         such counsel has assumed that when such payment, delivery and crediting
         occur, (x) such Offered Securities will have been registered in the
         name of Cede


                                       26
<PAGE>


         or such other nominee as may be designated by DTC, in each case on the
         Company's share registry in accordance with its certificate of
         incorporation, bylaws and applicable law, (y) DTC will be registered as
         a "clearing corporation" within the meaning of Section 8-102 of the UCC
         and (z) appropriate entries to the securities account or accounts in
         the name of such Underwriter on the records of DTC will have been made
         pursuant to the UCC; and

                  (ii) The Power of Attorney and Custody Agreement are valid and
         binding obligations of such Selling Stockholder, enforceable in
         accordance with their terms, subject to bankruptcy, insolvency,
         fraudulent transfer, reorganization, moratorium and similar laws of
         general applicability relating to or affecting creditors' rights and to
         general equity principles.

         (m) The Representatives shall have received from Cravath, Swaine &
Moore LLP, counsel for the Underwriters, such opinion or opinions, dated such
Closing Date, with respect to the incorporation of the Company, the validity of
the Offered Securities delivered on such Closing Date, the Registration
Statements, the General Disclosure Package, the Prospectus and other related
matters as the Representatives may reasonably require, and the Selling
Stockholders and the Company shall have furnished to such counsel such documents
as they reasonably request for the purpose of enabling them to pass upon such
matters.

         (n) The Representatives shall have received a certificate, dated such
Closing Date, of the President or any Vice President and a principal financial
or accounting officer of the Company in which such officers, to their knowledge,
shall state that: the representations and warranties of the Company in this
Agreement are true and correct; the Company has complied with all agreements and
satisfied all conditions on its part to be performed or satisfied hereunder at
or prior to such Closing Date; no stop order suspending the effectiveness of any
Registration Statement has been issued and no proceedings for that purpose have
been instituted or are contemplated by the Commission; the Additional
Registration Statement (if any) satisfying the requirements of subparagraphs (1)
and (3) of Rule 462(b) was filed pursuant to Rule 462(b), including payment of
the applicable filing fee in accordance with Rule 111(a) or (b) under the Act,
prior to the Applicable Time; and, subsequent to the date of the most recent
financial statements in each of the Prospectus and the General Disclosure
Package, there has been no material adverse change, nor any development or event
involving a prospective material adverse change, in the condition (financial or
other), business, properties or results of operations of the Company and its
subsidiaries taken as a whole except as set forth in each of the Prospectus and
the General Disclosure Package or as described in such certificate.

         (o) The Representatives shall have received a letter, dated such
Closing Date, of Ernst & Young LLP (i) that meets the requirements of subsection
(a) of this Section, except that the specified date referred to in such
subsection will be a date not more than three days prior to such Closing Date
for the purposes of this subsection and (ii) in form and substance satisfactory
to the Representatives covering the financial information with respect to the
Company set forth in the Prospectus that is not also set forth in the General
Disclosure Package.

         (p) On or prior to the date of this Agreement, the Representatives
shall have received lock-up letters from each of the stockholders of the Company
listed on Schedule D hereto.

         (q) The Custodian will to deliver to the Representatives a letter
stating that they will deliver to each Selling Stockholder a United States
Treasury Department Form 1099 (or other applicable form or statement specified
by the United States Treasury Department regulations in lieu thereof) on or
before January 31 of the year following the date of this Agreement.


                                       27
<PAGE>


The Selling Stockholders and the Company will furnish the Representatives with
such conformed copies of the opinions listed in this Section 7 and such
certificates, letters and documents as the Representatives reasonably request.
The Representatives may in their sole discretion waive on behalf of the
Underwriters compliance with any conditions to the obligations of the
Underwriters hereunder, whether in respect of an Optional Closing Date or
otherwise.

         8. Indemnification and Contribution. (a) The Company will indemnify and
hold harmless each Underwriter, its partners, members, directors, officers,
affiliates and each person, if any, who controls such Underwriter within the
meaning of Section 15 of the Act, against any losses, claims, damages or
liabilities, joint or several, to which such Underwriter may become subject,
under the Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in
any Registration Statement, each Statutory Prospectus, the Prospectus, any
Issuer Free Writing Prospectus, any "issuer information" filed pursuant to Rule
433(d), or any amendment or supplement thereto, or any related preliminary
prospectus, or arise out of or are based upon the omission or alleged omission
to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, and will reimburse each Underwriter
for any legal or other expenses reasonably incurred by such Underwriter in
connection with investigating or defending any such loss, claim, damage,
liability or action as such expenses are incurred; provided, however, that the
Company will not be liable in any such case to the extent that any such loss,
claim, damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement in or omission or alleged omission from any of such
documents in reliance upon and in conformity with written information furnished
to the Company by any Underwriter through the Representatives specifically for
use therein, it being understood and agreed that the only such information
furnished by any Underwriter consists of the information described as such in
subsection (c) below.

         Insofar as the foregoing indemnity agreement, or the representations
and warranties contained in Section 2(a)(ii), may permit indemnification for
liabilities under the Act of any person who is an Underwriter or a partner or
controlling person of an Underwriter within the meaning of Section 15 of the Act
and who, at the date of this Agreement, is a director, officer or controlling
person of the Company, the Company has been advised that in the opinion of the
Commission such provisions may contravene Federal public policy as expressed in
the Act and may therefore be unenforceable. In the event that a claim for
indemnification under such agreement or such representations and warranties for
any such liabilities (except insofar as such agreement provides for the payment
by the Company of expenses incurred or paid by a director, officer or
controlling person in the successful defense of any action, suit or proceeding)
is asserted by such a person, the Company will submit to a court of appropriate
jurisdiction (unless in the opinion of counsel for the Company the matter has
already been settled by controlling precedent) the question of whether or not
indemnification by it for such liabilities is against public policy as expressed
in the Act and therefore unenforceable, and the Company will be governed by the
final adjudication of such issue.

         The Company agrees to indemnify and hold harmless the Designated
Underwriter and each person, if any, who controls the Designated Underwriter
within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act (the "DESIGNATED ENTITIES"), from and against any and all
losses, claims, damages and liabilities (including, without limitation, any
legal or other expenses reasonably incurred in connection with defending or
investigating any such action or claim) (i) caused by any untrue statement or
alleged untrue statement of a material fact contained in any material prepared
by or with the consent of the Company for distribution to Participants in
connection with the Directed Share Program 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; (ii) caused by the
failure of any Participant to pay for and accept delivery of Directed Shares
that the Participant agreed to purchase; or (iii) related to, arising out of, or
in connection with the Directed Share Program, other than losses, claims,
damages or liabilities (or expenses relating thereto) that are finally
judicially determined to have resulted from the bad faith or gross negligence of
the Designated Entities.

         (b) The Selling Stockholders, severally and not jointly, will indemnify
and hold harmless each Underwriter, its partners, members, directors, officers,
affiliates and each person, if any, who controls such


                                       28
<PAGE>


Underwriter within the meaning of Section 15 of the Act, against any losses,
claims, damages or liabilities, joint or several, to which such Underwriter may
become subject, under the Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of any material fact
contained in any Registration Statement, each Statutory Prospectus, the
Prospectus, any Issuer Free Writing Prospectus, any "issuer information" filed
pursuant to Rule 433(d), or any amendment or supplement thereto, or any related
preliminary prospectus, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, and will reimburse
each Underwriter for any legal or other expenses reasonably incurred by such
Underwriter in connection with investigating or defending any such loss, claim,
damage, liability or action as such expenses are incurred; provided, however,
that the Selling Stockholders will not be liable in any such case to the extent
that any such loss, claim, damage or liability arises out of or is based upon an
untrue statement or alleged untrue statement in or omission or alleged omission
from any of such documents in reliance upon and in conformity with written
information furnished to the Company by an Underwriter through the
Representatives specifically for use therein, it being understood and agreed
that the only such information furnished by any Underwriter consists of the
information described as such in subsection (c) below; and provided further,
however, that the aggregate liability under this subsection and Section 18 of
each Selling Stockholder shall be limited to an amount equal to the aggregate
gross proceeds after underwriting commissions and discounts but before expenses,
to such Selling Stockholder from the sale of Offered Securities sold by such
Selling Stockholder hereunder. For each Selling Stockholder other than Louis F.
Miceli, the indemnity provided for in this paragraph (b) shall apply only to the
extent that any such untrue statement or alleged untrue statement in or omission
or alleged omission from a Registration Statement, each Statutory Prospectus,
the Prospectus, any Issuer Free Writing Prospectus, any "issuer information"
filed pursuant to Rule 433(d), or any amendment or supplement thereto, or any
related preliminary prospectus is made in reliance upon and in conformity with
written information furnished to the Company by the applicable Selling
Stockholder specifically for use therein; it being understood and agreed that
(i) for each Selling Stockholder other than the CSFB Merchant Banking Selling
Stockholders, the only such information furnished in writing to the Company by
such Selling Stockholder is that information regarding such Selling Stockholder
set forth in the Prospectus under the caption "Principal and Selling
Stockholders" and (ii) for each CSFB Merchant Banking Selling Stockholder, the
only such information furnished in writing to the Company by such Selling
Stockholder is that information regarding such Selling Stockholder set forth in
the Prospectus under the captions "Principal and Selling Stockholders", "Certain
Relationships and Related Party Transactions" and "Underwriting".

         (c) Each Underwriter will severally and not jointly indemnify and hold
harmless the Company, its directors and officers and each person, if any, who
controls the Company within the meaning of Section 15 of the Act, and each
Selling Stockholder against any losses, claims, damages or liabilities to which
the Company, such Selling Stockholder or such other persons may become subject,
under the Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in
any Registration Statement, each Statutory Prospectus, the Prospectus, any
Issuer Free Writing Prospectus, or any amendment or supplement thereto, or any
related preliminary prospectus, or arise out of or are based upon the omission
or the alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, in each case
to the extent, but only to the extent, that such untrue statement or alleged
untrue statement or omission or alleged omission was made in reliance upon and
in conformity with written information furnished to the Company by such
Underwriter through the Representatives specifically for use therein, and will
reimburse any legal or other expenses reasonably incurred by the Company and
each Selling Stockholder in connection with investigating or defending any such
loss, claim, damage, liability or action as such expenses are incurred, it being
understood and agreed that the only such information furnished by any
Underwriter consists of the following information in the Prospectus furnished on
behalf of each Underwriter: the concession and reallowance figures appearing in
the fourth paragraph under the caption "Underwriting", the information contained
in the sixth paragraph under the caption "Underwriting" and the information
contained in the last two sentences of the eighteenth paragraph under the
caption "Underwriting".


                                       29
<PAGE>


         (d) Promptly after receipt by an indemnified party under this Section
of notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against an indemnifying party under
subsection (a), (b) or (c) above, notify the indemnifying party of the
commencement thereof; but the failure to notify the indemnifying party shall not
relieve it from any liability that it may have under subsection (a), (b) or (c)
above except to the extent that it has been materially prejudiced (through the
forfeiture of substantive rights or defenses) by such failure; and provided
further that the failure to notify the indemnifying party shall not relieve it
from any liability that it may have to an indemnified party otherwise than under
subsection (a), (b) or (c) above. In case any such action is brought against any
indemnified party and it notifies an indemnifying party of the commencement
thereof, the indemnifying party will be entitled to participate therein and, to
the extent that it may wish, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with counsel reasonably satisfactory to
such indemnified party (who shall, except in the event of a conflict of
interest, be counsel to the indemnifying party), and after notice from the
indemnifying party to such indemnified party of its election so to assume the
defense thereof, the indemnifying party will not be liable to such indemnified
party under this Section, as the case may be, for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense
thereof. Notwithstanding anything contained herein to the contrary, if indemnity
may be sought pursuant to the last paragraph in Section 8(a) hereof in respect
of such action or proceeding, then in addition to such separate firm for the
indemnified parties, the indemnifying party shall be liable for the reasonable
fees and expenses of not more than one separate firm (in addition to any local
counsel) for the Designated Underwriter for the defense of any losses, claims,
damages and liabilities arising out of the Directed Share Program, and all
persons, if any, who control the Designated Underwriter within the meaning of
either Section 15 of the Act of Section 20 of the Exchange Act. No indemnifying
party shall, without the prior written consent of the indemnified party, effect
any settlement of any pending or threatened action 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 (i) includes
an unconditional release of such indemnified party from all liability on any
claims that are the subject matter of such action and (ii) does not include a
statement as to, or an admission of, fault, culpability or a failure to act by
or on behalf of an indemnified party.

         (e) If the indemnification provided for in this Section is unavailable
or insufficient to hold harmless an indemnified party under subsection (a), (b)
or (c) above, then each indemnifying party shall contribute to the amount paid
or payable by such indemnified party as a result of the losses, claims, damages
or liabilities referred to in subsection (a), (b) or (c) above (i) in such
proportion as is appropriate to reflect the relative benefits received by the
Company and the Selling Stockholders on the one hand and the Underwriters on the
other from the offering of the Securities or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Company and the Selling Stockholders on
the one hand and the 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. The relative benefits
received by the Company and the Selling Stockholders on the one hand and the
Underwriters on the other shall be deemed to be in the same proportion as the
total net proceeds from the offering (before deducting expenses) received by the
Company and the Selling Stockholders bear to the total underwriting discounts
and commissions received by the Underwriters. The relative fault 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 Company, the Selling
Stockholders or the Underwriters and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such untrue
statement or omission. The amount paid by an indemnified party as a result of
the losses, claims, damages or liabilities referred to in the first sentence of
this subsection (e) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any action or claim which is the subject of this subsection (e).
Notwithstanding the provisions of this subsection (e), (x) no Underwriter shall
be required to contribute any amount in excess of the amount by which the total
price at which the Securities 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 (y) no Selling
Stockholder shall be


                                       30
<PAGE>


required to contribute pursuant to this subsection (e) and Section 18 an
aggregate amount in excess of the amount by which the aggregate gross proceeds
after underwriting discounts and commissions but before expenses to such Selling
Stockholder from the sale of Offered Securities sold by such Selling Stockholder
hereunder exceeds the amount of any damages which such Selling 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 Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Underwriters' obligations in this subsection (e) to
contribute are several in proportion to their respective underwriting
obligations and not joint.

         (f) The obligations of the Company and the Selling Stockholders under
this Section shall be in addition to any liability which the Company and the
Selling Stockholders may otherwise have and shall extend, upon the same terms
and conditions, to each person, if any, who controls any Underwriter or the QIU
(as hereinafter defined) within the meaning of the Act; and the obligations of
the Underwriters under this Section shall be in addition to any liability which
the respective Underwriters may otherwise have and shall extend, upon the same
terms and conditions, to each director of the Company, to each officer of the
Company who has signed a Registration Statement and to each person, if any, who
controls the Company within the meaning of the Act; subject, however, to any
limitations contained herein or therein.

         9. Default of Underwriters. If any Underwriter or Underwriters default
in their obligations to purchase Offered Securities hereunder on either the
First or any Optional Closing Date and the aggregate number of shares of Offered
Securities that such defaulting Underwriter or Underwriters agreed but failed to
purchase does not exceed 10% of the total number of shares of Offered Securities
that the Underwriters are obligated to purchase on such Closing Date, the
Representatives may make arrangements satisfactory to the Company and the
Selling Stockholders for the purchase of such Offered Securities by other
persons, including any of the Underwriters, but if no such arrangements are made
by such Closing Date, the non-defaulting Underwriters shall be obligated
severally, in proportion to their respective commitments hereunder, to purchase
the Offered Securities that such defaulting Underwriters agreed but failed to
purchase on such Closing Date. If any Underwriter or Underwriters so default and
the aggregate number of shares of Offered Securities with respect to which such
default or defaults occur exceeds 10% of the total number of shares of Offered
Securities that the Underwriters are obligated to purchase on such Closing Date
and arrangements satisfactory to the Representatives, the Company and the
Selling Stockholders for the purchase of such Offered Securities by other
persons are not made within 36 hours after such default, this Agreement will
terminate without liability on the part of any non-defaulting Underwriter, the
Company or the Selling Stockholders, except as provided in Section 11 (provided
that if such default occurs with respect to Optional Securities after the First
Closing Date, this Agreement will not terminate as to the Firm Securities or any
Optional Securities purchased prior to such termination). As used in this
Agreement, the term "Underwriter" includes any person substituted for an
Underwriter under this Section. Nothing herein will relieve a defaulting
Underwriter from liability for its default.

         10. Qualified Independent Underwriter. The Company hereby confirms its
engagement of Goldman, Sachs & Co. as, and Goldman, Sachs & Co. hereby confirms
its agreement with the Company to render services as, a "qualified independent
underwriter" within the meaning of Rule 2720(b)(15) of the NASD with respect to
the offering and sale of the Offered Securities. Goldman, Sachs & Co., in its
capacity as qualified independent underwriter and not otherwise, is referred to
herein as the "QIU". As compensation for the services of the QIU hereunder, the
Company agrees to pay the QIU $10,000 on the First Closing Date.

         11. Survival of Certain Representations and Obligations. The respective
indemnities, agreements, representations, warranties and other statements of the
Selling Stockholders, of the Company or its officers and of the several
Underwriters set forth in or made pursuant to this Agreement will remain in full
force and effect, regardless of any investigation, or statement as to the
results thereof, made by or on behalf of any Underwriter, any Selling
Stockholder, the Company or any of their respective representatives, officers or
directors or any controlling person, and will survive delivery of and payment
for the Offered Securities. If this Agreement is terminated pursuant to Section
9 or if for any reason the purchase of the


                                       31
<PAGE>


Offered Securities by the Underwriters is not consummated, the Company shall
remain responsible for the expenses to be paid or reimbursed by them pursuant to
Section 5 and the respective obligations of the Company, the Selling
Stockholders, and the Underwriters pursuant to Section 8 and Section 18, and the
obligations of the Company and the Selling Stockholders pursuant to Section 10,
shall remain in effect, and if any Offered Securities have been purchased
hereunder the representations and warranties in Section 2 and all obligations
under Section 5 shall also remain in effect. If the purchase of the Offered
Securities by the Underwriters is not consummated for any reason other than
solely because of the termination of this Agreement pursuant to Section 8 or the
occurrence of any event specified in clause (iii), (iv), (vi), (vii) or (viii)
of Section 7(c), the Company will reimburse the Underwriters for all
out-of-pocket expenses (including fees and disbursements of counsel) reasonably
incurred by them in connection with the offering of the Offered Securities.

         12. Notices. All communications hereunder will be in writing and:

         (a) if sent to the Underwriters, will be mailed, delivered or
telegraphed and confirmed to the Representatives, c/o Credit Suisse Securities
(USA) LLC, Eleven Madison Avenue, New York, NY 10010-3629, Attention:
Transactions Advisory Group, and Goldman, Sachs & Co., 85 Broad Street, New
York, NY 10004, Attention: Registration Department;

         (b) if sent to the Company, will be mailed, delivered or telegraphed
and confirmed to it at 2 Crescent Place, Oceanport, NJ 07757-0900, Attention:
Lou Miceli;

         (c) if sent to the CSFB Merchant Banking Selling Stockholders, will be
mailed, delivered or telegraphed and confirmed to it at Eleven Madison Avenue,
New York, NY 10010, Attention: Amy Yeung and Daniel Gewirtz;

         (d) if sent to Selling Stockholder EMC Corporation, will be mailed,
delivered or telegraphed and confirmed to it at 176 South Street, Hopkinton, MA
01748, Attention: Matt Olton or Laury Sorensen;

         (e) if sent to Selling Stockholder Microsoft Corporation, will be
mailed, delivered or telegraphed and confirmed to it at One Microsoft Way,
Building 34, Redmond, WA 98052, Attention: Marc Brown;

         (f) if sent to the Putnam Selling Stockholders, will be mailed,
delivered or telegraphed and confirmed to it at One Post Office Square, Boston,
MA 02109, Attention: Rick M. Wynn;

         (g) if sent to Selling Stockholders Louis F. Miceli, Anand Prahlad or
Suresh P. Reddy, will be mailed, delivered or telegraphed and confirmed to him
at Mayer, Brown, Rowe & Maw LLP, 71 South Wacker Drive, Chicago, IL 60606-4837,
Attention: Philip Niehoff; and

         (h) if sent to Selling Stockholder the Executor, will be mailed,
delivered or telegraphed and confirmed to her at Inver Lodge, 63 Pentland
Terrace, Edinburgh EH10 5HG UK.

provided, however, that any notice to an Underwriter pursuant to Section 8 or to
the QIU pursuant to Section 18 will be mailed, delivered or telegraphed and
confirmed to such Underwriter or QIU.

         13. Successors. This Agreement will inure to the benefit of and be
binding upon the parties hereto and their respective successors and the officers
and directors and controlling persons referred to in Section 8, and no other
person will have any right or obligation hereunder.

         14. Representation. The Representatives will act for the several
Underwriters in connection with the transactions contemplated by this Agreement,
and any action under this Agreement taken by the Representatives jointly will be
binding upon all the Underwriters. N. Robert Hammer will act for the Custodial
Selling Stockholders in connection with such transactions, and any action under
or in respect of this Agreement taken by N. Robert Hammer will be binding upon
all the Custodial Selling Stockholders.


                                       32
<PAGE>


         15. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such
counterparts shall together constitute one and the same Agreement.

         16. Absence of Fiduciary Relationship. The Company and the Selling
Stockholders acknowledge and agree that:

         (a) the Underwriters have been retained solely to act as underwriters
in connection with the sale of the Company's securities and that no fiduciary,
advisory or agency relationship between the Company or the Selling Stockholders,
on the one hand, and the Underwriters, on the other, has been created in respect
of any of the transactions contemplated by this Agreement, irrespective of
whether the Underwriters have advised or are advising the Company or the Selling
Stockholders on other matters;

         (b) the price of the securities set forth in this Agreement was
established by the Company and the Selling Stockholders following discussions
and arms-length negotiations with the Representatives and the Company and the
Selling Stockholders are capable of evaluating and understanding, and understand
and accept the terms, risks and conditions of the transactions contemplated by
this Agreement;

         (c) the Company and the Selling Stockholders have been advised that the
Underwriters and their affiliates are engaged in a broad range of transactions
which may involve interests that differ from those of the Company or the Selling
Stockholders and that the Underwriters have no obligation to disclose such
interests and transactions to the Company or the Selling Stockholders by virtue
of any fiduciary, advisory or agency relationship; and

         (d) the Company and the Selling Stockholders waive, to the fullest
extent permitted by law, any claims they may have against the Underwriters for
breach of fiduciary duty or alleged breach of fiduciary duty with respect to the
transactions contemplated by this Agreement and, to the fullest extent permitted
by applicable law, agree that the Underwriters shall have no liability (whether
direct or indirect) to the Company or the Selling Stockholders in respect of
such a fiduciary duty claim or to any person asserting such a fiduciary duty
claim on behalf of or in right of the Company, including stockholders, employees
or creditors of the Company.

         17. APPLICABLE LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAWS.

         The Company hereby submits to the non-exclusive jurisdiction of the
Federal and state courts in the Borough of Manhattan in The City of New York in
any suit or proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby.

         18. Supplemental Indemnity of the QIU. (a) The Company and the Selling
Stockholders, severally and not jointly, will indemnify and hold harmless
Goldman, Sachs & Co., in its capacity as QIU, against any losses, claims,
damages or liabilities, joint or several, to which the QIU may become subject,
under the Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon (i)
any untrue statement or alleged untrue statement of a material fact contained in
any Registration Statement, each Statutory Prospectus, the Prospectus, any
Issuer Free Writing Prospectus, any "issuer information" filed pursuant to Rule
433(d), or any amendment or supplement thereto, or any related preliminary
prospectus, (ii) the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading or (iii) any act or omission to act or any alleged act or
omission to act by Goldman, Sachs & Co. as QIU in connection with any
transaction contemplated by this Agreement or undertaken in preparing for the
purchase, sale and delivery of the Offered Securities, except as to this clause
(iii) to the extent that any such loss, claim, damage or liability results from
the gross negligence or bad faith of Goldman, Sachs & Co. in performing the
services as QIU, and will reimburse the QIU for any legal or other expenses
reasonably incurred by the QIU in connection with investigating or defending any
such loss, claim, damage, liability or action as such expenses are


                                       33
<PAGE>


incurred; provided, however, that the aggregate liability under this subsection
(a) and Section 8 of each Selling Stockholder shall be limited to an amount
equal to the aggregate gross proceeds after underwriting commissions and
discounts but before expenses, to such Selling Stockholder from the sale of
Offered Securities sold by such Selling Stockholder hereunder. For each Selling
Stockholder other than Louis F. Miceli, the indemnity provided for in this
subsection (a) shall apply only to the extent that any such untrue statement or
alleged untrue statement in or omission or alleged omission from a Registration
Statement, each Statutory Prospectus, the Prospectus, any Issuer Free Writing
Prospectus, any "issuer information" filed pursuant to Rule 433(d), or any
amendment or supplement thereto, or any related preliminary prospectus is made
in reliance upon and in conformity with written information furnished to the
Company by the applicable Selling Stockholder specifically for use therein; it
being understood that the only such information furnished in writing to the
Company by such Selling Stockholder specifically for use in a Registration
Statement or the Prospectus is that information described in Section 8(b) of
this Agreement.

         (b) Promptly after receipt by the QIU under subsection (a) above of
notice of the commencement of any action, the QIU shall, if a claim in respect
thereof is to be made against the Company or any Selling Stockholder under such
subsection, notify the Company or the Selling Stockholder, as the case may be,
in writing of the commencement thereof; but the omission so to notify the
Company or any Selling Stockholder shall not relieve it from any liability which
it may have to the QIU otherwise than under such subsection. In case any such
action shall be brought against the QIU and it shall notify the Company or any
Selling Stockholder of the commencement thereof, the Company or the Selling
Stockholder shall be entitled to participate therein and, to the extent that
they shall wish, jointly with any other indemnifying party similarly notified,
to assume the defense thereof, with counsel satisfactory to the QIU (who shall
not, except with the consent of the QIU, be counsel to the Company or any
Selling Stockholder), and, after notice from the indemnifying party to the QIU
of its election so to assume the defense thereof, the indemnifying party shall
not be liable to the QIU under such subsection for any legal expenses of other
counsel or any other expenses, in each case subsequently incurred by the QIU, in
connection with the defense thereof other than reasonable costs of
investigation. The Company and the Selling Stockholders shall not, without the
written consent of the indemnified party, effect the settlement or compromise
of, or consent to the entry of any judgment with respect to, any pending or
threatened action or claim in respect of which indemnification or contribution
may be sought hereunder (whether or not the QIU is an actual or potential party
to such action or claim) unless such settlement, compromise or judgment (i)
includes an unconditional release of the QIU from all liability arising out of
such action or claim and (ii) does not include a statement as to or an admission
of fault, culpability or a failure to act, by or on behalf of the QIU.

         (c) If the indemnification provided for in this Section 18 is
unavailable to or insufficient to hold harmless Goldman, Sachs & Co., in its
capacity as QIU, under subsection (a) above in respect of any losses, claims,
damages or liabilities (or actions in respect thereof) referred to therein, then
the Company and the Selling Stockholders shall contribute to the amount paid or
payable by the QIU as a result of such losses, claims, damages or liabilities
(or actions in respect thereof) in such proportion as is appropriate to reflect
the relative benefits received by the Company and the Selling Stockholders on
the one hand and the QIU on the other from the offering of the Offered
Securities. If, however, the allocation provided by the immediately preceding
sentence is not permitted by applicable law, then the Company and the Selling
Stockholders shall contribute to such amount paid or payable by the QIU in such
proportion as is appropriate to reflect not only such relative benefits but also
the relative fault of the Company and the Selling Stockholders on the one hand
and the QIU on the other in connection with the statements or omissions which
resulted in such losses, claims, damages or liabilities (or actions in respect
thereof), as well as any other relevant equitable considerations. The relative
benefits received by the Company and the Selling Stockholders on the one hand
and the QIU on the other shall be deemed to be in the same proportion as the
total net proceeds from the offering (before deducting expenses) received by the
Company and the Selling Stockholders, as set forth in the table on the cover
page of the Prospectus, bear to the fee payable to the QIU pursuant to Section
10 hereof. The relative fault 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 Company and the Selling Stockholders on the one hand or the QIU
on the other and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission. The Company,
the Selling Stockholders and


                                       34
<PAGE>


the QIU agree that it would not be just and equitable if contributions pursuant
to this subsection (c) were determined by pro rata allocation or by any other
method of allocation which does not take account of the equitable considerations
referred to above in this subsection (c). The amount paid or payable by the QIU
as a result of the losses, claims, damages or liabilities (or actions in respect
thereof) referred to above in this subsection (c) shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation. Notwithstanding the provisions of this
subsection (c), no Selling Stockholder shall be required to contribute pursuant
to this subsection (c) and Section 8 an aggregate amount in excess of the amount
by which the aggregate gross proceeds after underwriting discounts and
commissions but before expenses to such Selling Stockholder from the sale of
Offered Securities sold by such Selling Stockholder hereunder exceeds the amount
of any damages which such Selling Stockholder has otherwise been required to pay
by reason of such untrue or alleged untrue statement or omission or alleged
omission.

         (d) The obligations of the Company and the Selling Stockholders under
this Section 18 shall be in addition to any liability which the Company and the
Selling Stockholders may otherwise have and shall extend, upon the same terms
and conditions, to each person, if any, who controls the QIU within the meaning
of the Act; subject, however, to any limitations contained herein or therein.


                            [Signature pages follow]


                                       35
<PAGE>


         If the foregoing is in accordance with the Representatives'
understanding of our agreement, kindly sign and return to the Company one of the
counterparts hereof, whereupon it will become a binding agreement among the
Selling Stockholders, the Company and the several Underwriters in accordance
with its terms.


                                   Very truly yours,

                                        COMMVAULT SYSTEMS, INC.,


                                             By
                                                  ------------------------------
                                                  Name:
                                                  Title:


<PAGE>


                                        SPROUT CEO FUND, L.P.,

                                        By:


                                             By
                                                  ------------------------------
                                                  Name:
                                                  Title:


                                        DLJ CAPITAL CORPORATION,

                                        By:


                                             By
                                                  ------------------------------
                                                  Name:
                                                  Title:


                                        SPROUT GROWTH II, L.P.,

                                        By:


                                             By
                                                  ------------------------------
                                                  Name:
                                                  Title:


                                        SPROUT CAPITAL VII, L.P.,

                                        By:


                                             By
                                                  ------------------------------
                                                  Name:
                                                  Title:


                                       37
<PAGE>


                                        DLJ MERCHANT BANKING PARTNERS, L.P.,

                                        By:


                                             By
                                                  ------------------------------
                                                  Name:
                                                  Title:


                                        DLJ INTERNATIONAL PARTNERS, C.V.,

                                        By:


                                             By
                                                  ------------------------------
                                                  Name:
                                                  Title:


                                        DLJ OFFSHORE PARTNERS, C.V.,

                                        By:


                                             By
                                                  ------------------------------
                                                  Name:
                                                  Title:


                                        DLJMB FUNDING, INC.,

                                        By:


                                             By
                                                  ------------------------------
                                                  Name:
                                                  Title:


                                        DLJ FIRST ESC, L.P.,

                                        By:


                                             By
                                                  ------------------------------
                                                  Name:
                                                  Title:


                                       38
<PAGE>


                                        DLJ ESC II, L.P.,

                                        By:


                                             By
                                                  ------------------------------
                                                  Name:
                                                  Title:


                                       39
<PAGE>


                                        PUTNAM OTC & EMERGING GROWTH FUND,

                                        By:  Putnam Investment Management, LLC


                                             By
                                                  ------------------------------
                                                  Name:
                                                  Title:


                                        PUTNAM WORLD TRUST II -- PUTNAM EMERGING
                                        INFORMATION SCIENCES FUND,

                                        By:  The Putnam Advisory Company, LLC


                                             By
                                                  ------------------------------
                                                  Name:
                                                  Title:


                                       40
<PAGE>


                                   SELLING STOCKHOLDERS:
                                     MICROSOFT CORPORATION
                                     EMC CORPORATION
                                     LOUIS F. MICELI
                                     ANAND PRAHLAD
                                     SURESH P. REDDY
                                     THE EXECUTOR OF THE ESTATE OF SCOTT MERCER


                                             By
                                                  ------------------------------
                                                  Name: N. Robert Hammer
                                                  Title: Attorney-In-Fact


                                       41
<PAGE>


The foregoing Underwriting Agreement is hereby confirmed and accepted as of the
date first above written.

                                   CREDIT SUISSE SECURITIES (USA) LLC
                                   GOLDMAN, SACHS & CO.

                                        Acting on behalf of themselves and as
                                          the Representatives of the several
                                          Underwriters

                                     CREDIT SUISSE SECURITIES (USA) LLC,


                                             By:
                                                  ------------------------------
                                                  Name:
                                                  Title:



                                     GOLDMAN, SACHS & CO.,


                                             By:
                                                  ------------------------------
                                                  (Goldman, Sachs & Co.)


                                       42

<PAGE>
                                   SCHEDULE A

<TABLE>
<CAPTION>
                                                                                     NUMBER OF
                                                                     NUMBER OF        OPTIONAL
                                                                  FIRM SECURITIES    SECURITIES
           SELLING STOCKHOLDER                                       TO BE SOLD      TO BE SOLD
----------------------------------------------------------------  ---------------  ---------------
<S>                                                               <C>              <C>
Sprout CEO Fund, L.P. ..........................................            8,851
DLJ Capital Corporation ........................................          127,017
Sprout Growth II, L.P. .........................................          623,824
Sprout Capital VII, L.P. .......................................          763,033
DLJ Merchant Banking Partners, L.P. ............................          814,868
DLJ International Partners, C.V ................................          398,991
DLJ Offshore Partners, C.V .....................................           21,307
DLJMB Funding, Inc. ............................................          320,278
DLJ First ESC, L.P. ............................................          215,050
DLJ ESC II, L.P. ...............................................            2,297
EMC Corporation ................................................          572,917
Microsoft Corporation ..........................................          550,000
Putnam OTC & Emerging Growth Fund ..............................          389,525
Putnam World Trust II -- Putnam Emerging Information
     Sciences Fund .............................................           27,505
Samantha Mercer, acting solely in her capacity as the executor
     of the estate of the late Scott Mercer (referred to in this
     Agreement as the "Executor") ..............................           45,000
Louis F. Miceli ................................................           62,500
Anand Prahlad ..................................................           10,000
Suresh P. Reddy ................................................           10,000

                                                                  ---------------  ---------------
    Total ......................................................       11,111,111        1,666,667
                                                                  ===============  ===============
</TABLE>

                                      A-1
<PAGE>


                                   SCHEDULE B

<TABLE>
<CAPTION>
                                                           NUMBER OF
                                                        FIRM SECURITIES
                    UNDERWRITER                         TO BE PURCHASED
-----------------------------------------------------   ---------------
<S>                                                     <C>
Credit Suisse Securities (USA) LLC...................
Goldman, Sachs & Co. ................................
Merrill Lynch, Pierce, Fenner & Smith Incorporated...
Thomas Weisel Partners LLC...........................
C.E. Unterberg, Towbin LLC...........................
RBC Capital Markets Corporation......................

      Total..........................................
                                                        ---------------
                                                             11,111,111
                                                        ===============
</TABLE>


                                       B-1
<PAGE>


                                   SCHEDULE C


                     SUBSIDIARIES OF COMMVAULT SYSTEMS, INC.

CommVault Systems (Canada) Inc.
CommVault Systems Mexico, S. de R.L. de C.V.
CommVault Holding Company B.V.
CommVault Systems Netherlands B.V.
CommVault Systems International B.V.
CommVault Systems (India) Private Limited
CommVault Systems (Australia) Pty. Ltd.
CommVault Systems (Singapore) Private Limited
CommVault Systems Ltd.
CommVault Systems GmbH
CommVault Systems Sarl
CommVault Systems (Shanghai/China) Representative Office
Advanced Data LifeCycle Management, Inc.




                                      C-1
<PAGE>


                                   SCHEDULE D

                      PARTIES EXECUTING LOCK-UP AGREEMENTS

<TABLE>
<S>                                         <C>
1.   Adell, Laura A.                        48.  Borbely, Patrick R.
2.   Adubato, John H.                       49.  Borges, Donald J.
3.   Adulla, Mahesh                         50.  Boucher, Lisamarie B.
4.   Agarwal, Shri R.                       51.  Brattole, Nyssa L.
5.   Agrawal, Vijay H.                      52.  Brennan, Peter D.
6.   Ahern, Teresa E.                       53.  Britton, Scott P.
7.   Ahn, Jun H.                            54.  Brockway, Brian F.
8.   Aiello, John A.                        55.  Brouwer, Daniel W.
9.   Al-Ali, Mu'ath                         56.  Brown, Heather M.
10.  Albury, Russell A.                     57.  Bruno, Pat D.
11.  Alcaide, Michael                       58.  Bunte, Alan
12.  Allen, Reginald L.                     59.  Burd, Brent N.
13.  Alonzo, Chris A.                       60.  Burns, Patrick C.
14.  Ananthanarayanan, Hariharan            61.  Buyalskaya, Irina
15.  Anderson, Edward T.                    62.  Byers, David J.
16.  Angradi, David M.                      63.  Byrne, Michael J.
17.  Anson, Wayne                           64.  Calima, Aldwin J.
18.  Applegate, Carlton W.                  65.  Candelaria, Louis
19.  Applegate, Martha A.                   66.  Cannon, Kymberly M.
20.  Arakkal, Shali S.                      67.  Carolan, Brian
21.  Aravindakshan, Rahul M.                68.  Caron, Thomas P.
22.  Arrata, Robert                         69.  Caroselli, Michael L.
23.  Ashraf, Waqas                          70.  Carroll, Jeanna B.
24.  Atanacio, Thomas D.                    71.  Cavanaugh, Sean
25.  Attarde, Deepak                        72.  Celauro, Francis H.
26.  Azar, Hina                             73.  Chando, Douglas B.
27.  Baig, Muhammad J.                      74.  Charletta, Nicole C.
28.  Bair, Brent O.                         75.  Chassey, Robert
29.  Ballard, David A.                      76.  Chen, Ho-Chi
30.  Bansal, Priti                          77.  Cheng, Connie W.
31.  Bansod, Ketan D.                       78.  Chevalier, Thomas M.
32.  Baral, Biswa N.                        79.  Chitren, Luke R.
33.  Baumann, William J.                    80.  Choi, Joon W.
34.  Beattie, William C.                    81.  Cinkus, Karen L.
35.  Becker, Paul D.                        82.  Collom, Mark B.
36.  Belikov, Dennis                        83.  Comey, Nicholas
37.  Benedetti, Peter N.                    84.  Conaty, Sean A.
38.  Benjamin, Evan                         85.  Confenti, Michael A.
39.  Berezin, Joshua S.                     86.  Connington, Stephen
40.  Bhola, Nandram                         87.  Conte, Maria
41.  Bielss, Danny W.                       88.  Conzone, Scott L.
42.  Bienia, Wayne P.                       89.  Cook, Gary W.
43.  Bigelow, Tyler A.                      90.  Cooper, Scott T.
44.  Bilbrey, Aaron E.                      91.  Coviello, Peter
45.  Biondo, Joelle                         92.  Cowgill, Jared A.
46.  Blocker, Michael R.                    93.  Cozzolino, James
47.  Blumetti, James F.                     94.  Crayne, Nathan T.
</TABLE>


                                      D-1
<PAGE>

<TABLE>
<S>                                          <C>
95.  Crescenti, John                         148. Girod, Stanton M.
96.  D'Acci, Sean M.                         149. Godin, Nicole L.
97.  Dadia, Ketan D.                         150. Gokhale, Parag V.
98.  Dahlmeier, Michael C.                   151. Goodrich, James A.
99.  Dalton, Patrick R.                      152. Govindarao, Raghuprasad
100. Daniele, Leonard                        153. Graeler, Ernst
101. Danischewski, Adam M.                   154. Graham, Lori
102. Davis, John W.                          155. Green, Nichole L.
103. Dejesus, Roberto                        156. Gregory, Stuart
104. Delany, Bernadette                      157. Griffin, Jeremy D.
105. Delgado, Eric                           158. Haas, Mary C.
106. Deluca, Matthew                         159. Halliday, William W.
107. Demeno, Randy                           160. Hammer, Douglas D.
108. DeMuri, Randall A.                      161. Hammer, Neil R.
109. Denovio, Audrey                         162. Han, Chengfeng
110. Dewyer, Jayme R.                        163. Han, Raymond
111. Diemer, Jeffrey L.                      164. Hand, Michael K.
112. Dorio, Joseph A.                        165. Hardesty, Bruce E.
113. Dornemann, Henry W.                     166. Harless, Eric S.
114. Dory, James S.                          167. Harrah, Jeffrey L.
115. Drew, Jeffrey M.                        168. Harriman Polanski, Kelly E.
116. Dubey, Rajesh K.                        169. Harris, Wade S.
117. Duffy, Francis S.                       170. Harrison, James T.
118. Dunatov, Roland G.                      171. Heinberg, Jeff S.
119. Dunphy, Jacquelyn R.                    172. Hernandez, Samuel E.
120. Dwarampudi, Bheemeswara R.              173. Hess, Lisa R.
121. Earp, Christopher J.                    174. Hicks, Michael W.
122. Echols, Jeffrey B.                      175. Himelwright, Brandon C.
123. Elliott, Kriss W.                       176. Hinkle, Brian E.
124. Ellsworth, Mary W.                      177. Hoffman, Tara
125. Erofeev, Andrei                         178. Holthaus, James R.
126. Ervine, Daniel G.                       179. Horwitz, Alan
127. Evaldi, Jennifer P.                     180. Howard, Randall T.
128. Fasulo, Michael R.                      181. Huang, Yu-Hua
129. Fitzgerald, Kevin P.                    182. Huebner, Steven K.
130. Fitzgerald, William J.                  183. Hughes, John C.
131. Flanders, Rudyard K.                    184. Ignatius, Tharayil J.
132. Fliller, Edward M.                      185. Ilkal, Zahid M.
133. Floyd, Christopher S.                   186. Izhar, Kouser
134. Foster, Donald E.                       187. Jadav, Dipesh D.
135. Foster, Henry                           188. Jaiswal, Anil K.
136. Free, David E.                          189. Jajal, Biren
137. Friend, Gaylord W.                      190. Jaynes, Steven M.
138. Fuentes, Christopher                    191. Johnson, David B.
139. Furst, William K.                       192. Johnson, William F.
140. Futey, Jon-Paul                         193. Jones, David L.
141. Garcia, Juan C.                         194. Jordine, Richard L.
142. George, John W.                         195. Joshi, Dhaval N.
143. Gerenza, Gary W.                        196. Joshi, Hetalkumar N.
144. Geverola, Marilou G.                    197. Joyce, Robert A.
145. Gianantonio, Robert F.                  198. Kalaf, Dennis A.
146. Giblin, John J.                         199. Kaloustian, Robert
147. Gilmore, Peter R.                       200. Kane, Daniel
</TABLE>

                                      D-2
<PAGE>

<TABLE>
<S>                                          <C>
201. Kapadia, Nirav H.                       254. Madeira, Andre D.
202. Kapadia, Tarak                          255. Madeira, Eliane D.
203. Kapusta, Peter J.                       256. Maisonave, David
204. Karaban, Timothy E.                     257. Maltez, Ricardo
205. Karandikar, Amey V.                     258. Maranna, Chandrashekar
206. Karthikeyan, Thiagarajan                259. Margraves, Melisa B.
207. Karukappilly, Bobby                     260. Martin, Sandra M.
208. Katte, Deepak P.                        261. Martinez, Armando
209. Katz, Stuart A.                         262. Mason, Ricky D.
210. Kavuri, Srinivas                        263. Mathews, Kim M.
211. Kelley, Thomas M.                       264. Mattei Rodriguez, Jose A.
212. Kennedy, Geoffrey E.                    265. May, Andreas L.
213. Kindya, Susan E.                        266. McAteer, Brian D.
214. King, John F.                           267. McCabe, John P.
215. Kinney, Jean A.                         268. McCarthy, Brian E.
216. Klose, Michael F.                       269. McCracken, Andrew A.
217. Kobal, Mark J.                          270. McGee, David O.
218. Kochunni, Jaidev O.                     271. McGuigan, James J.
219. Kogan, Mitchell J.                      272. McKiernan, James M.
220. Koti, Venkata R.                        273. McKnight, Lynda L.
221. Kottomtharayil, Rajiv                   274. McMahon, Michael J.
222. Kresic, Thomas A.                       275. Meade, Jared N.
223. Kron, Gary L.                           276. Mecca, Michael A.
224. Krone, Derek A.                         277. Melendez, Edgar A.
225. Kumar, Avinash                          278. Menna, Louis
226. Kurilo, David                           279. Messore, Peter J.
227. Lad, Kamleshkumar K.                    280. Miceli, Danielle
228. Lambros, Jean M.                        281. Miceli, Louis F.
229. Lanclos, Aron M.                        282. Migliaccio, Jeanna A.
230. Langley, David J.                       283. Miiller, Ronald
231. Laswell, Kenneth                        284. Minton, Larry F.
232. Lavigne, Robert R.                      285. Moffitt, Linda
233. Lavin, Kelly M.                         286. Mondschein, Warren H.
234. Law, Niesha T.                          287. Montford, Michael J.
235. Lee, Elisa Y.                           288. Moquia, Alexis A.
236. Lee, Tay-How                            289. Moran, Thomas E.
237. Lepore, Desirai D.                      290. Morriss, Bryan D.
238. Li, Xu                                  291. Motto, Tom A.
239. Ligon, David A.                         292. Muller, Marcus S.
240. Linarducci, Carol A.                    293. Nandish, Ranjini P.
241. Lisk, Helen                             294. Neilson, John R.
242. Little, Daniel L.                       295. Neiper, Jodi M.
243. Littlefield, Duncan A.                  296. Nelson, Grant
244. Logan, Mary E.                          297. Nettleingham, Mark
245. Lopez, Fernando A.                      298. Neuhaus, Brian K.
246. Loukienko, Andrei V.                    299. Ngo, David T.
247. Low, Kevin J.                           300. Nichols, Adam W.
248. Lu, Jun                                 301. Nikolov, Igor
249. Lu, Yanhui                              302. Nittur, Sheshadri K.
250. Luehmann, Eric K.                       303. Norton, Laura J.
251. Lunde, Norman R.                        304. Nuss, Gregory W.
252. Lyons, James J.                         305. O'Brien, Robert W.
253. MacMillan, Thomas A.                    306. O'Dowd, Stephen P.
</TABLE>

                                      D-3

<PAGE>

<TABLE>
<S>                                                   <C>
307. Oshinsky, David A.                               359. Sabol, Michael F.
308. Otte Bevarly, Charlotte K. (Kim Bevarly)         360. Sant, Jeetendra C.
309. Owen, David W.                                   361. Santiago, Connie A.
310. Pabish, Scott E.                                 362. Santos, Celina
311. Pack, Kristina                                   363. Sbert, Sylvia
312. Paramasivam, Kumarasamy                          364. Scamardella, Andrew R.
313. Paternoster, Michael L.                          365. Schenk, Keith D.
314. Patterson, Gregory P.                            366. Schneider, Morey O.
315. Paulino, Juan                                    367. Schwartz, Jeremy A.
316. Pawar, Rahul S.                                  368. Scott, David R.
317. Pennella, Rodney A.                              369. Seshadri, Suma N.
318. Perez, Christina M.                              370. Sharma, Rita
319. Perry, John T.                                   371. Sheridan, Christopher G.
320. Petrino, Randy V.                                372. Sherrill, Michael S.
321. Phillips, Kathleen M.                            373. Shields, Francis X.
322. Platson, Timothy K.                              374. Shimanovich, George
323. Plesa, Beverly A.                                375. Shipman, Mark R.
324. Plesa, George                                    376. Shoemaker, Benjamin A.
325. Plumacher, Michael J.                            377. Sinnott, Jeffrey
326. Polny, Thaddeus J.                               378. Smith, Gregory J.
327. Polon, Robert A.                                 379. Smolenyak, Robert T.
328. Porco, David A.                                  380. Sokoll, Mark R.
329. Portis, Stacey L.                                381. Song, Wei
330. Power, James B.                                  382. Sorenson, Stephen T.
331. Prahlad, Anand                                   383. Sosa, Anthony
332. Prokop, Michelle                                 384. Sosa, Jacinto M.
333. Rabenda, Denise                                  385. Spencer, Mark A.
334. Raghunathan, Jayashree                           386. Stansbury, Patricia J.
335. Ramirez, Oscar B.                                387. Steinmetz, Brandon M.
336. Randolph, Jon                                    388. Stevens, Leon A.
337. Rappe-Farrell, Audrey A.                         389. Stocker, Christopher L.
338. Reddy, Rammohan G.                               390. Strange, Elton M.
339. Reddy, Suresh P.                                 391. Stringham, Jack B.
340. Reed, Darla L.                                   392. Stubsten, Kristen E.
341. Reiber, Michael A.                               393. Sui, Xuemei
342. Reid, Robert W.                                  394. Tafeen, Robert W.
343. Reide Totland, Linda K.                          395. Talatam, Geeta P.
344. Rembish, Jeffrey J.                              396. Taylor, Lisa
345. Retnamma, Manojkumar V.                          397. Thockchom, Gautam S.
346. Reynolds, Scott                                  398. Thomas, Stanley A.
347. Ribera, William L.                               399. Toma, Erik
348. Rice, Eric                                       400. Trione, Rick
349. Rios, Reinaldo A.                                401. Tucker, Joseph S.
350. Rivera, Javier                                   402. Tullo, Craig A.
351. Roberts, Regina C.                               403. Urbealis, Marc J.
352. Roe, Edward E.                                   404. Valley, William S.
353. Rogers, Kerwin J.                                405. Van Wagoner, Christie
354. Romeo, Thomas A.                                 406. Varadharajan, Prakash
355. Rondinone, Ann J.                                407. Venkatesh, Mallarajapattan
356. Rubin, Matthew S.                                408. Verhalen, Chris W.
357. Russell, Edward P.                               409. Vibhor, Anand
358. Sabarini, L. S.                                  410. Vitale, Camillo A.
                                                      411. Vu, Ky
</TABLE>

                                      D-4
<PAGE>

<TABLE>
<S>                                          <C>
412. Vullupala, Shankar R.                   465. Kilgour, Alasdair
413. Walker, Jason R.                        466. Klose, Frank
414. Wang, Aidong                            467. Ko, Jenny
415. Wang, Paolien                           468. Kohde, Joachim
416. Wang, Yu                                469. Krane, Michel
417. Webber, Paula M.                        470. Lee, Charles
418. Weir, James P.                          471. Linschoten, Willem
419. Welder, David D.                        472. Luft, Peter
420. West, David R.                          473. Lynch, Michelle
421. Wilson, Dray H.                         474. Maganto, Daniel
422. Winslow, William J.                     475. McClure, Paul
423. Wren, James D.                          476. McGarry, Scott
424. Xie, Dan                                477. Mercer, Scott
425. Young, Paul M.                          478. Merlo, Massimo
426. Zakharkin, Dmitriy B.                   479. Murphy, Aaron
427. Zani, Martha H.                         480. Mutzberg, Jurgen
428. Zhao, Yejian                            481. Nagel, Henk
429. Zharov, Aleksey                         482. Neyens, Johan
430. Zhou, Lixin                             483. Nolan, Paul
431. Zhou, Ying                              484. O'Donnell, Paul
432. Grenier, Ross                           485. Palmer, Gary
433. McAfee, Andy                            486. Podvenbek, Thorsten
434. Ahmet, Simon                            487. Price, David
435. Bailey, Steven                          488. Rothery, Ian
436. Balfe, Bryan                            489. Scheepers, Lucas
437. Baptist, Johan                          490. Schwaak, Frank
438. Begg, Lain                              491. Serafino, Vito
439. Boelman, Williman                       492. Sharp, Sheena
440. Boot, Bjorn                             493. Sillars, Gerry
441. Brazel, Paul                            494. Skivington, Barnaby
442. Breidohr, Ralph                         495. Tavares, Luisa
443. Brennecke, Kay S.                       496. Tavenier, Rick
444. Brouwers, Tanja                         497. Trampe, Wolfgang
445. Bruno, Giovanni                         498. van de Riet, Henny
446. Buhle, Julia                            499. van der Weele, Cees
447. Calis, John                             500. Van Laar, Marien
448. Carter, Melanie                         501. Van Roon, Martin
449. Chase, Brett Jonathan                   502. Vogel, Yvonne
450. Collins, Nathan                         503. Wan, Martin
451. Davies, Angharad                        504. Williams, Martin
452. de bruijne, Dyon                        505. Ziem, Jorg
453. De La Plaza Benito, Rubens              506. Burchat, Christopher
454. DeGiorgi, Michael                       507. Dier, Paul
455. Duffen, Andrew                          508. MacKay, Peter
456. Evers, Eric                             509. Mahoney, Dan
457. Fifield, Andrew                         510. McMurray, Brian
458. Funes, Cesar Pablo                      511. Moyer, Jeff
459. Giljohann, Marc A.                      512. Parsons, Andy
460. Hansbuer, Gregor                        513. Payment , Mark
461. Helton, Thomas                          514. Stewart, Glenn
462. Huisman, Peter                          515. Vosguian, Varouj
463. Kempf, Roland                           516. Yazdanmehr, Saeid
464. Kestner, Thomas                         517. Devassy, Varghese
</TABLE>

                                      D-5
<PAGE>

<TABLE>
<S>                                     <C>
518. Iyer, Shanker                      571. Barry, Tom
519. Yao, Bin                           572. Cargo, Robert
520. Zeng, Yun                          573. Fanzilli, Frank
521. Ontiveros, Eduardo                 574. Geday, Armondo
522. Patino, Carlos                     575. Geeslin, Keith
523. Valdivia, Pilar                    576. Kurimsky, Robert
524. Feng, Xu                           577. Pulver, Daniel
525. Huang, Wen Jie (Jay)               578. Smith, Gary
526. Li, Zeng                           579. Alan Anderson
527. Liang, Xin (Cathy)                 580. Aman Ventures LLP
528. Loh, Koon Sign                     581. Amberbrook IV LLC
529. Lu, Jiang Hong (Joy)               582. Amerindo Internet Fund PLC
530. Ming, Lin Xiao                     583. Andrew G. Celli & James Satloff
531. Xing, Xu Yong                           TTEE FBO: Andrew Thomas Celli Trust
532. Wen Xix Yuan                       584. Andrew G. Celli & James Satloff
533. Amarendran, Arun                        TTEE FBO: Theodore Jean Satloff Trust
534. Chatterjee, Tirthankar             585. Andrew G. Celli & James Satloff
535. Chavali, Srikrishna                     TTEE U/A/D 5/19/93 FBO:
536. Deshpanoe, Prasanna                     Rebecca Rose Cell i
537. Golla, Sreekanth                   586. Barbara M. Byrne
538. Iyer, Namita                       587. Bella & Israel Unterberg Foundation
539. Iyer, Sudha                        588. Camelot Capital I, L.P.
540. Job, Joe Sabu T                    589. Camelot Capital II, L.P.
541. Kapila, Shaurav                    590. Camelot Offshore Fund Limited
542. Kolhatkar, A.                      591. Cargolamp & Co. (Putnam Trustee)
543. Kumar, N                           592. CE Unterberg Towbin Capital
544. Kuppuraj, Ravikiran                     Partners I, L .P.
545. Modaduga, Satish                   593. David Ireland
546. Moitra, Bipasha                    594. Declaration of Trust DTD 8/7/96 by
547. Mondrati, Govinda Rao                   Thomas I. Unterberg
548. Murthy, Harihakan                  595. DLJ Capital Corporation
549. Muvva, O.                          596. DLJ ESC II, L.P.
550. Naidu, Sandeep                     597. DLJ First ESC, LLC
551. Narayanan, Sesha                   598. DLJ First ESC, LP
552. Neelapala, N                       599. DLJ International Partners, C.V.
553. Nuthakki, Narendar                 600. DLJ Merchant Banking Funding, Inc.
554. Pandiarjan, Raji                   601. DLJ Merchant Banking Partners, L.P.
555. Polimera, Rajesh                   602. DLJ Offshore Partners, C.V.
556. Prasad, Arun                       603. Douglas Carlisle
557. Prasad, AVSN                       604. DRW Venture Partners, L.P.
558. Rangamani, Karthik                 605. Ellen U. Celli
559. Reddy, Pavan Kumar                 606. Ellen U. Celli & Emily U. Satloff
560. Reddy, P.M.                             TTEES T.I. Unterberg Grandchildrens
561. Sabbineni, Ramya                        Trust U/A/D 4/26/93
562. Sabu, Joe                          607. EMC Investment Corporation
563. Sharma, KV Raman                   608. Frank A. Juska
564. Sinha, Meenakshi                   609. Gregory Reyes
565. Sinha, Prachi                      610. HFI Private Equity Ltd.
566. Singh, Gurjeet                     611. John P. Rosenthal (Estate of)
567. Sirisha, PN                        612. K. Flynn McDonald
568. Sista, S.J                         613. Kane & Co. (Putnam Trust)
569. Velagapudi, Rajesh                 614. Larry Cormier
570. Vellannki, Satish                  615. Louis Miceli
</TABLE>

                                      D-6

<PAGE>

<TABLE>
<S>                                              <C>
616. Marc Weiss                                  654. Winthrop Trust Co.,
617. Marjorie & Clarence E. Unterberg                 Trustee on behalf of
     Foundation, Inc.                                 N. Robert Hammer
618. Mark C. Francis                             655. Abyad, Victor A
619. Michael J. Sandifer                         656. Adams, Keith
620. Michael Krasko                              657. Ahmed, Jasimuddin
621. Microsoft Corporation                       658. Andreolo, James A
622. MLPFS as Custodian,                         659. Austin, Stewart
     Robert Freiburghouse                        660. Autry, Blake Allen
623. Morgan Keegan Employee                      661. Babeu, James F
     Investment, L.P.                            662. Barry, John
624. Morgan Keegan Opportunity Fund, L.P.        663. Baru, Rama
625. N. Robert Hammer                            664. Basser, Nechama A.
626. Patrick Fallon                              665. Bidgood, Renfrew
627. Putnam Discovery Growth Fund                666. Boston, James E
628. Putnam Funds Trust-Putnam Technology        667. Brooks, Steve D.
     Fund Investment Management, LLC             668. Bukowski, Christopher
629. Putnam OTC and Emerging Growth Fund         669. Camooso Jr., Benjamin A.
630. Putnam World Trust II-Putnam                670. Castro, Ayinde
     Emerging Information Sciences Fund          671. Cooke, Lauren J. (Morris)
631. Randy Fodero                                672. Cormier, Larry
632. Reyes Family Trust DTD 4/30/96              673. Costa, Christopher
633. Saints Capital V, L.P.                      674. Cragle, Jonathan
634. Scotty R. Neal                              675. Crewe, Tamara
635. Sprout IX Plan Investors, L.P.              676. D'Ambrosi, Dina V.
636. Sprout Capital VII, L.P.                    677. DeLamielleure, Mathew J
637. Sprout Capital IX, L.P.                     678. Delova, Dessi
638. Sprout CEO Fund, L.P.                       679. DeRamos, Ralden
639. Sprout Entrepreneurs Fund, L.P.             680. Dobyns, Gayle
640. Sprout Growth II, L.P.                      681. Donato, Nicholas A.
641. TH Lee, Putnam Investment                   682. Donovan, Joseph
     Trust/TH Lee, Putnam                        683. Dudak, Kevin J.
     Emerging Opportunities Portfolio            684. Eastman Stovall, Lucinda Adams
642. Thomas I. Unterberg                         685. Edelstein, David A.
643. Thomas I. Unterberg TTEE of the Ellen       686. Emert, Thomas S
     Celli Family Trust U/A/D 3/25/93            687. Evans, Terri
644. Thomas I. Unterberg TTEE of the Emily       688. Fenwick, David F
     Satloff Family Trust U/A/D 3/25/93          689. Fields, Michelle
645. Van Wagoner Capital                         690. Filler, Rennie
      Opportunities Fund, L.P.                   691. Floto, Kenneth W.
646. Van Wagoner Capital Partners, L.P.          692. Fodero, Randy S
647. Van Wagoner Crossover Fund, L.P.            693. Freiburghouse, Robert
648. Van Wagoner Private                         694. Furman, Lawrence J
     Opportunities Fund, L.P.                    695. Gambacorta, Donna
649. Wheatley Associates III, L.P.               696. Ghajar, Mina
650. Wheatley Foreign Partners III, L.P.         697. Gilmartin, Leslie
651. Wheatley Partners III, L.P.                 698. Gilmore, Jaime L.
652. William H. Rusher, Jr.                      699. Godard, Susan
653. William J. Herman                           700. Goranov, Dimitar
                                                 701. Granger, Robert H
                                                 702. Greene, Rondol G.
                                                 703. Gupta, Neeraj
                                                 704. Guthrie, John
                                                 705. Hamilton, Vernon
</TABLE>

                                      D-7
<PAGE>

<TABLE>
<S>                                          <C>
706. Hawkes, Brett                           759. Smith, Stephanie
707. Holmes, Steven                          760. Smith, Susan
708. Hulfachor, Dieter                       761. Souliotis, James A.
709. Hurlbut, Laura L                        762. Southwell, Brian
710. Ignatius, Paul                          763. Spampanato, Wende
711. Ireland, David H                        764. Subramaniam, Manivannan
712. Johnson, Janet                          765. Swiatek, David
713. Kaelin, Kathleen                        766. Teti, John C
714. Kautzman, Philip                        767. Toma, Jessica (Dinapoli)
715. Kinal, Ihor                             768. Tonks, Harry
716. Kripalani, Sanjay                       769. Tosh, John F.
717. LaCorte, Guy                            770. Tyagarajan, Mahesh
718. Lagattuta, Doreen                       771. Uretzky, Charles A
719. LaRosa, Guy W.                          772. Uretzky, Kim Marie
720. LeRoy, William A.                       773. VanNess, Mark
721. Lewis, Steven                           774. Vaughn, Donna L
722. Lightner, Bruce                         775. Vazquez, Edwin
723. Lilliendahl, Linda                      776. Wang, Zhao
724. Loser, Allen R                          777. Wilkinson, Patricia
725. Lu, Zhijian                             778. Wolejsza, James K
726. Lucas, John P                           779. Wymbs, Fredrick J
727. Maffei, Mary E                          780. Yermakov, Sergey
728. Masi, Joseph                            781. Zale, Steven A
729. McAuley, Tara                           782. Zaleski, Edward F.
730. McCormack, Joanne                       783. Berger, Bruce
731. Mehta, Umang                            784. Cosgrove, Lisa M
732. Mitchell, Marjorie C.                   785. Helms, Marjorie
733. Moody, Mitchell                         786. Hicks, Gary
734. Mulder, Gary J                          787. Orlowsky, Cristie L
735. Narayanaswamy, Naga R                   788. Senn, Michael
736. Nash, Richie                            789. Veldhoen, Bernardus
737. Neal, Scotty R                          790. Abell, Anthony A.
738. Nelson, James T                         791. Cozzolino, James
739. Noble, Anne                             792. Drahozal, David
740. Parker, Lee                             793. Ferguson, William J.
741. Parrish, Ladd                           794. Forman, Timothy A.
742. Petto, Paul                             795. Godny, Scott C.
743. Post-Kupper, Stacy M                    796. Goffe, Clyde O.
744. Pugh, Danielle M.                       797. Harrison, Dolores
745. Rajpopat, Tejas                         798. Harrold, Christopher E.
746. Ramidi, Suryadev                        799. Huskey, Billy L.
747. Ramos, Maria                            800. John, Bin J.
748. Ramsthaler, Kenneth G                   801. Kautz, Carrie L.
749. Rideout, Allison                        802. Krishnamurthy, Roshini
750. Roche', Georgeanna                      803. Liu, Chong
751. Ruane, Kim                              804. Lyons, James J.
752. Salamone, Joseph F                      805. Merrill, Gary D.
753. Schrule, Thomas A                       806. Miceli, James G.
754. Sculler, Nina                           807. Naik, Vikram
755. Shah, Aditi                             808. Reckner, John H.
756. Shar, Joshua B.                         809. Roth, Eric J.
757. Signorelli, Suzanne                     810. Schiavi, John M.
758. Smith, A. Kristina                      811. Valle, Flordemaria
</TABLE>

                                      D-8
<PAGE>

<TABLE>
<S>                                          <C>
812. Vartanian, Gregory K.                   827. Foye, Brendan
813. Barruch, James Gordon                   828. Garnette, Edward
814. Barruch, Lawrence Paul                  829. Geilling, Holly
815. Pierresteguy, Frederic                  830. Hiremath, Shiv
816. Steyn, Robert Johan                     831. Hoelcle, Robert
817. Wilkinson, Doward                       832. Kniola, Daniel
818. Hammer, Zachery                         833. Lull, Tim
819. Hammer, Allison                         834. McBride, Barbara
820. Miceli, James                           835. Pavan Kumar Reddy Bebadala
821. Miceli, Michael                         836. Sobot, Steve
822. Psaltis, Fredda                         837. St. James, Catherine
823. Barry, Charlotte                        838. Sullivan, Richard
824. Brower, Robert                          839. Stumm, Marcus
825. Colderan, Earnesto                      840. Sutton, Parker
826. Dafeldecker, Jean                       841. Vajancevski, Tony
</TABLE>

                                      D-9

<PAGE>

                                    EXHIBIT A

                       FORM OF OPINION OF ROPES & GRAY LLP

      1. The Underwriting Agreement has been duly authorized, executed and
delivered by each of the Putnam Selling Stockholders.

      2. The execution and delivery of the Underwriting Agreement and the sale
of the Firm Securities by the Putnam Selling Stockholders (a) will not violate
any provision of Massachusetts, New York or federal law, or any order or decree
known to such counsel of any court or government agency or body specifically
naming any Putnam Selling Stockholder (except that such counsel need express no
opinion as to federal or state securities or "blue sky" laws, including the
antifraud provisions of federal and state securities laws) and (b) will not
violate the provisions of the agreement and declaration of trust or bylaws of
any of the Putnam Selling Stockholders.

      3. No consent, approval, authorization or order of, or filing with, any
Massachusetts, New York or United States governmental authority is required to
be obtained by any Putnam Selling Stockholder in connection with the execution
and delivery of the Underwriting Agreement or for the sale of the Firm
Securities by such Putnam Selling Stockholder, except such as may be required
under federal or state securities laws or "blue sky" laws (as to which such
counsel need express no opinion).

      4. Upon payment by the Underwriters of the purchase price for the Firm
Securities to be sold by the Putnam Selling Stockholders in accordance with the
Underwriting Agreement, delivery in the State of New York of security
certificates for the Firm Securities, as directed by the Underwriters, endorsed
to Cede & Co. or such other nominee as may be designated by DTC, or in blank, by
an effective indorsement, registration of transfer of the Firm Securities in the
stock registry of the Company in the name of Cede & Co. or such other nominee
and the crediting of the Firm Securities on the books of DTC to securities
accounts of the Underwriters, and assuming that neither DTC nor any such
Underwriter has notice of any adverse claim to the Firm Securities within the
meaning of Section 8 105 of the UCC, (a) DTC will be a "protected purchaser" of
the Securities within the meaning of Section 8-303 of the UCC, (b) under Section
8 501 of the UCC, the Underwriters will acquire a security entitlement in
respect of the Firm Securities and (c) no action based on an "adverse claim" (as
defined in Section 8 102 of the UCC) to the Firm Securities, whether framed in
conversion, replevin, constructive trust, equitable lien or other theory, may be
successfully asserted against the Underwriters with respect to the Firm
Securities.

      With respect to the opinion of such counsel set forth in paragraph 4
above, such counsel may assume that DTC is a "clearing corporation" within the
meaning of Section 8 102 of the UCC and that DTC's jurisdiction for purposes of
Section 8-110 of the UCC is the State of New York.

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.1
<SEQUENCE>3
<FILENAME>y24537a5exv3w1.txt
<DESCRIPTION>EX-3.1: AMENDED AND RESTATED CERTIFICATE OF INCORPORATION
<TEXT>
<PAGE>

                                                                     EXHIBIT 3.1

                              AMENDED AND RESTATED
                          CERTIFICATE OF INCORPORATION
                                       OF
                             COMMVAULT SYSTEMS, INC.

       COMMVAULT SYSTEMS, INC., a corporation organized and existing under the
General Corporation Law of the State of Delaware (the "General Corporation
Law"), hereby certifies as follows:

       1. The name of the corporation is CommVault Systems, Inc. The corporation
was originally incorporated on April 19, 1996 under the name "CV Systems, Inc."
pursuant to the General Corporation Law.

       2. This Amended and Restated Certificate of Incorporation restates,
integrates and amends the Amended and Restated Certificate of Incorporation of
this corporation such that the text of the Amended and Restated Certificate of
Incorporation shall now read as follows:

                                    ARTICLE I
                                      NAME

       The name of the Corporation is CommVault Systems, Inc. (the
"Corporation").

                                   ARTICLE II
                           REGISTERED OFFICE AND AGENT

       The address of the Corporation's registered office in the State of
Delaware is 2711 Centerville Road, Suite 400, in the City of Wilmington, County
of New Castle. The name of the Corporation's registered agent at such address is
The Prentice-Hall Corporation System, Inc.

                                   ARTICLE III
                                     PURPOSE

       The purposes for which the Corporation is formed are to engage in any
lawful act or activity for which corporations may be organized under the General
Corporation Law and to possess and exercise all of the powers and privileges
granted by such law and any other law of the State of Delaware.

                                   ARTICLE IV
                               AUTHORIZED CAPITAL

       (A) The number of shares which the corporation is authorized to issue is
Eighty Nine Million Five Hundred Seventy Five Thousand (89,575,000) divided into
two (2) classes. Sixty Million Four Hundred Twenty Five Thousand (60,425,000)
shares shall be



<PAGE>


Common Stock, par value $0.01 per share (the "Common Stock"), and Twenty Nine
Million One Hundred Fifty Thousand (29,150,000) shares shall be Preferred Stock,
par value $0.01 per share (the "Preferred Stock"). The preferences, limitations
and relative rights in respect of the shares of each class (and the variations
in the relative rights and preferences as between series of any class in series)
are as follows:

       (B) Preferred Stock. The Preferred Stock authorized by this Certificate
of Incorporation may be issued from time to time in one or more series. The
rights, preferences, privileges and restrictions granted to and imposed on (i)
the Series A Preferred Stock (the "Series A Preferred Stock"), which series
shall consist of Three Million (3,000,000) shares, (ii) the Series B Preferred
Stock (the "Series B Preferred Stock"), which series shall consist of One
Million (1,000,000) shares, (iii) the Series C Preferred Stock (the "Series C
Preferred Stock"), which series shall consist of One Million (1,000,000) shares,
(iv) the Series D Preferred Stock (the "Series D Preferred Stock"), which series
shall consist of One Million (1,000,000) shares, (v) the Series E Preferred
Stock, which series shall consist of One Million (1,000,000) shares (the "Series
E Preferred Stock", and collectively with the classes of Preferred Stock
described in clauses (i) through (iv), shall be sometimes referred to as the
"Series A Through E Preferred Stock"), (vi) the Series AA Preferred Stock (the
"Series AA Preferred Stock"), which series shall consist of Five Million
(5,000,000) shares, (vii) the Series BB Preferred Stock (the "Series BB
Preferred Stock"), which series shall consist of Five Million (5,000,000) shares
and (viii) the Series CC Preferred Stock (the "Series CC Preferred Stock"),
which series shall consist of Twelve Million One Hundred Fifty Thousand
(12,150,000) shares are as set forth below in this Article IV(B). The Board of
Directors of this Corporation is hereby authorized to fix or alter the rights,
preferences, privileges and restrictions granted to or imposed upon additional
series of Preferred Stock, and the number of shares constituting any such series
and the designation thereof. Subject to compliance with applicable protective
voting rights which have been or may be granted to the Preferred Stock or any
series thereof ("Protective Provisions"), but notwithstanding any other rights
of the Preferred Stock or any series thereof, the rights, privileges,
preferences and restrictions of any such additional series shall be subordinated
to or pari passu with (including, without limitation, inclusion in provisions
with respect to liquidation and acquisition preferences, redemption and/or
approval of matters by vote or written consent) any of those of any present or
future class or series of Preferred Stock or Common Stock. Subject to compliance
with applicable Protective Provisions, the Board of Directors is also authorized
to increase or decrease the number of shares of any series (other than the
Series A Preferred Stock) prior or subsequent to the issue of that series, but
not below the number of shares of such series then outstanding. In case the
number of shares of any series shall be so decreased, the shares no longer
constituting such series shall resume the status which they had prior to the
adoption of the resolution originally fixing the number of shares of such
series.

              (1) Dividend Provisions.

                     (a) In the event this Corporation declares a cash dividend
on the Common Stock, the holders of the Series AA Preferred Stock, the Series BB
Preferred Stock, and the Series CC Preferred Stock shall each be entitled to
receive a proportionate share of any such dividend, out of any assets legally
available therefor, as though the holders of the Series AA Preferred Stock, the
Series BB Preferred Stock and the Series CC Preferred Stock were the holders of
the number of shares of Common Stock of this Corporation into which their shares
of



                                       2
<PAGE>


Series AA Preferred Stock, Series BB Preferred Stock and the Series CC Preferred
Stock are convertible as of the record date fixed for the determination of the
holders of the Common Stock of this Corporation entitled to receive such
distribution (the "Dividend Record Date").

                     (b) The holders of the Series A Through E Preferred Stock
shall be entitled to receive dividends, out of any assets legally available
therefor, 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 convertible into or entitling the holder thereof to receive, directly
or indirectly, additional shares of Common Stock of this Corporation) on the
Common Stock of this Corporation, at the per share rate of $1.788 per annum (as
adjusted for any stock dividends, combinations or splits with respect to such
shares), or, if greater (as determined on a per annum basis), an amount equal to
that paid on any other outstanding shares of this Corporation, payable only when
and if declared by the Board of Directors. Such dividends shall accrue and be
cumulative from (i) in the case of the Series A Preferred Stock, the original
issue date of such shares of Series A Preferred Stock, (ii) in the case of the
Series B Preferred Stock, July 14, 1997, (iii) in the case of the Series C
Preferred Stock, December 9, 1997, (iv) in the case of the Series D Preferred
Stock, October 21, 1998, and (v) in the case of and the Series E Preferred
Stock, March 15, 1999. Such dividends shall be payable on the first day of each
April, July, October and January (commencing, with respect to each share of
Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock,
Series D Preferred Stock, and Series E Preferred Stock on the first of such
dates to occur after the issuance of such share) to the holders of record at the
close of business on the fifteenth day of each March, June, September and
December. In the event that the Corporation fails to pay any portion of the full
quarterly dividend that accrues pursuant to this section, the difference between
such full quarterly dividend and the actual cash dividend (or the cash value of
such dividend, if not paid in cash) paid, if any, shall cumulate until paid in
full. All dividends paid with respect to shares of Series A Preferred Stock,
Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock,
and Series E Preferred Stock shall be paid pro rata to the holders entitled
thereto. Dividends, if paid, or if declared and set apart for payment, must be
paid, or declared and set apart for payment, on all outstanding shares of Series
A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D
Preferred Stock, and Series E Preferred Stock contemporaneously.

                     (c) In the event this Corporation shall declare any other
dividend or distribution payable in securities of other persons, evidences of
indebtedness issued by this Corporation or other persons, assets (excluding cash
dividends) or options or rights to purchase any such securities or evidence of
indebtedness, then, in each such case the holders of the Series AA Preferred
Stock, Series BB Preferred Stock, Series CC Preferred Stock, Series A Preferred
Stock, the Series B Preferred Stock, the Series C Preferred Stock, the Series D
Preferred Stock, and the Series E Preferred Stock shall be entitled to a
proportionate share of any such dividend or distribution as though the holders
of the Series AA Preferred Stock, Series BB Preferred Stock, Series CC Preferred
Stock, Series A Preferred Stock, the Series B Preferred Stock, the Series C
Preferred Stock, the Series D Preferred Stock, and the Series E Preferred Stock
were the holders of the number of shares of Common Stock of this Corporation
into which their respective shares of Series AA Preferred Stock, Series BB
Preferred Stock, Series CC Preferred Stock, Series A Preferred Stock, Series B
Preferred Stock, Series C Preferred Stock,



                                       3
<PAGE>


Series D Preferred Stock, or Series E Preferred Stock (as applicable) are
convertible as of the Dividend Record Date.

              (2) Liquidation Preference.

                     (a) In the event of any liquidation, dissolution or winding
up of this Corporation, either voluntary or involuntary, subject to the rights
of series of Preferred Stock which may from time to time come into existence,
the holders of Series AA Preferred Stock and the Series CC Preferred Stock (the
"Senior Liquidation Preference Classes") shall be entitled to receive, prior,
senior and in preference to any distribution of any of the assets of this
Corporation to the holders of the Series BB Preferred Stock, the Series A
Through E Preferred Stock or the Common Stock by reason of their ownership
thereof, an amount per share equal to $5.7319 for each share (as adjusted for
any stock dividends, combinations or splits with respect to such shares) of
Series AA Preferred Stock held by each such holder and an amount equal to $3.131
for each share (as adjusted for stock dividends, combinations or splits with
respect to such shares) of Series CC Preferred Stock held by each such holder,
plus any declared but unpaid dividends on such share. The Series AA Preferred
Stock and the Series CC Preferred Stock shall rank on a parity as to the receipt
of the respective preferential amounts for each such series upon the occurrence
of such event. If upon the occurrence of such event, the assets and funds thus
distributed among the holders of the Series AA Preferred Stock and the holders
of the Series CC Preferred Stock shall be insufficient to permit the payment to
such holders of the full aforesaid preferential amounts, then, subject to the
rights of series of Preferred Stock which may from time to time come into
existence, the entire assets and funds of this Corporation legally available for
distribution shall be distributed ratably among the holders of the Series AA
Preferred Stock and the Series CC Preferred Stock (pari passu) in proportion to
the amount each such holder is otherwise entitled to receive under this
subsection 2(a).

                     (b) In the event of any liquidation, dissolution or winding
up of this Corporation, either voluntary or involuntary, subject to the rights
of series of Preferred Stock which may from time to time come into existence and
subject to, and subordinate to, the rights of holders of the shares of the
Senior Liquidation Preference Classes pursuant to Section 2(a), the holders of
Series BB Preferred Stock shall be entitled to receive, prior, senior and in
preference to any distribution of any of the assets of this Corporation to the
holders of the Series A Through E Preferred Stock or the Common Stock by reason
of their ownership thereof, an amount per share equal to $12.10 for each share
(as adjusted for any stock dividends, combinations or splits with respect to
such shares) of Series BB Preferred Stock held by each such holder, plus any
declared but unpaid dividends on such share. If upon the occurrence of such
event, after distribution of all assets and funds to the holders of the shares
of the Senior Liquidation Preference Classes in accordance with Section 2(a),
the assets and funds thus distributed among the holders of the Series BB
Preferred Stock shall be insufficient to permit the payment to such holders of
the full aforesaid preferential amounts, then, subject to the rights of series
of Preferred Stock which may from time to time come into existence, the entire
assets and funds of this Corporation legally available for distribution shall be
distributed ratably among the holders of the Series BB (pari passu) in
proportion to the amount each such holder is otherwise entitled to receive under
this subsection 2(b).



                                        4
<PAGE>


                     (c) In the event of any liquidation, dissolution or winding
up of this Corporation, either voluntary or involuntary, subject to the rights
of series of Preferred Stock which may from time to time come into existence and
subject to, and subordinate to, the rights of the holders of shares of the
Senior Liquidation Preference Classes pursuant to Section 2(a) and the rights of
the Series BB Preferred Stock holders pursuant to Section 2(b), the holders of
Series A Preferred Stock, the Series B Preferred Stock, the Series C Preferred
Stock, the Series D Preferred Stock, and the Series E Preferred Stock shall be
entitled to receive, prior and in preference to any distribution of any of the
assets of this Corporation to the holders of the Common Stock by reason of their
ownership thereof, an amount per share equal to $14.90 for each share (as
adjusted for any stock dividends, combinations or splits with respect to such
shares) of Series A Preferred Stock, Series B Preferred Stock, Series C
Preferred Stock, Series D Preferred Stock, and the Series E Preferred Stock (as
applicable) held by each such holder, plus any accrued but unpaid dividends on
such share. If upon the occurrence of such event, after distribution of all
assets and funds to the holders of shares of the Senior Liquidation Preference
Classes in accordance with Section 2(a) and to the holders of the Series BB
Preferred Stock in accordance with Section 2(b), the assets and funds thus
distributed among the holders of the Series A Preferred Stock, the Series B
Preferred Stock, the Series C Preferred Stock, the Series D Preferred Stock, and
the Series E Preferred Stock shall be insufficient to permit the payment to such
holders of the full aforesaid preferential amounts, then, subject to the rights
of series of Preferred Stock which may from time to time come into existence,
the remaining assets and funds of this Corporation legally available for
distribution shall be distributed ratably among the holders of the Series A
Preferred Stock, the Series B Preferred Stock, the Series C Preferred Stock, the
Series D Preferred Stock, and the Series E Preferred Stock (pari passu) in
proportion to the amount each such holder is otherwise entitled to receive under
this subsection 2(c).

                     (d) Upon the completion of the distributions required by
subsections 2(a), 2(b) and 2(c) above, and subject to the rights of series of
Preferred Stock which may from time to time come into existence, the remaining
assets of this Corporation available for distribution to stockholders shall be
distributed among the holders of Common Stock and of the Series A Preferred
Stock, the Series B Preferred Stock, the Series C Preferred Stock, the Series D
Preferred Stock, and the Series E Preferred Stock with all shares of such stock
being treated as a single class for such purposes as if the holders of the
shares of such stock were the holders of the number of shares of Common Stock
into which such shares are convertible as of the record date fixed for the
determination of the holders of the Common Stock entitled to receive such
distribution.

                     (e) A consolidation or merger of this Corporation with or
into any other corporation or corporations (other than a wholly-owned subsidiary
or parent corporation) or a sale, conveyance or disposition of all or
substantially all of the assets of this Corporation or the effectuation by this
Corporation of a transaction or series of related transactions in which more
than fifty (50%) percent of the voting power of this Corporation is disposed of,
shall be deemed to be a liquidation, dissolution or winding up within the
meaning of this Section 2.

                     (f) In the event a liquidation, dissolution or winding up
of this Corporation under this Section 2 is effected, whether in whole or in
part, through a noncash distribution, the value of the assets to be distributed
to the holders of shares of Preferred Stock



                                       5
<PAGE>


and the holders of shares of Common Stock shall, (i) in the case of
publicly-traded securities, be equal to the closing sale price for such
securities over the thirty (30) day period ending on the date immediately prior
to the closing of the transaction that is deemed to be a liquidation,
dissolution or winding up or (ii) in all other cases, the value of such
consideration shall be the fair market value thereof as reasonably determined in
good faith by the Board of Directors of this Corporation.

              (3) Conversion. The holders of the Series AA Preferred Stock, the
Series BB Preferred Stock, the Series CC Preferred Stock and the Series A
Through E Preferred Stock shall have conversion rights (the "Conversion Rights")
as follows:

                     (a) Right to Convert Series AA Preferred Stock. Each share
of Series AA Preferred Stock shall be convertible into Common Stock, in whole or
in part, by the holder thereof at any time concurrent with or after the closing
of an Initial Public Offering upon the election of such holder, with each share
of Series AA Preferred Stock converting upon such election into Common Stock at
the Series AA Conversion Ratio as provided under Section 3(f) below. The Series
AA Preferred Stock shall automatically be converted into Common Stock at the
Series AA Conversion Ratio upon the closing of the Initial Public Offering. For
all purposes herein, "Initial Public Offering" shall mean the initial public
offering of Common Stock by this Corporation, through underwriters or otherwise,
that (i) requires registration, qualification or the filing of a prospectus
under the Securities Act of 1933, (ii) raises net proceeds of at least
$40,000,000 and (iii) the offering price per share of Common Stock, when
multiplied by the Series CC Conversion Ratio in effect at the time of the
offering, shall equal or exceed $6.26 per share.

                     (b) Right to Convert Series BB Preferred Stock. Each share
of Series BB Preferred Stock shall be convertible into Common Stock, in whole or
in part, by the holder thereof at any time upon the election of such holder,
with each share of Series BB Preferred Stock converting upon such election into
0.5 shares of Common Stock, as adjusted from time to time pursuant to Section
3(f) (the "Series BB Conversion Ratio"). The Series BB Preferred Stock shall be
automatically converted into Common Stock at the Series BB Conversion Ratio upon
the closing of the Initial Public Offering.

                     (c) Right to Convert Series CC Preferred Stock. Each share
of Series CC Preferred Stock shall be convertible into shares of Common Stock,
in whole or in part, by the holder thereof at any time upon the election of such
holder, with each share of Series CC Preferred Stock converting upon such
election into Common Stock at the Series CC Conversion Ratio as provided under
Section 3(f) below. The Series CC Preferred Stock shall be automatically
converted into Common Stock at the Series CC Conversion Ratio upon the closing
of the Initial Public Offering.

                     (d) Right to Convert Series A Through E Preferred Stock.
Subject to approval by the holders of a majority of the then outstanding shares
of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock,
Series D Preferred Stock, and Series E Preferred Stock (voting as a single
class), the Series A Preferred Stock, the Series B Preferred Stock, the Series C
Preferred Stock, the Series D Preferred Stock, and the Series E Preferred Stock
shall be convertible, in whole or in part, by the holders thereof at any time
into



                                       6
<PAGE>


Common Stock and a right to receive cash, with each share of Series A Preferred
Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred
Stock, or Series E Preferred Stock (as the case may be) converting upon such
election into: (i) two (2) fully paid and nonassessable shares of Common Stock
and (ii) a right to receive from this Corporation a cash payment in an amount
equal to $14.85 for each share of Series A Preferred Stock, Series B Preferred
Stock, Series C Preferred Stock, Series D Preferred Stock, or Series E Preferred
Stock (as applicable) held, plus all accrued but unpaid dividends on such share
(the "Cash Amount"). The holders of the Series A Through E Preferred Stock shall
have the right to condition their election to convert such Preferred Stock as
described above on the closing of the Corporation's Initial Public Offering.
Notwithstanding the foregoing, any election by the holders of the Series A
Through E Preferred Stock made before the Corporation's Initial Public Offering
to convert any share of Series A Through E Preferred Stock as described above
shall require the approval of each of (i) a majority of the then outstanding
shares of Series AA Preferred Stock and (ii) a majority of the then outstanding
shares of Series CC Preferred Stock, each voting as a separate class.

                     (e) Mechanics of Conversion. Following a conversion of the
Series AA Preferred Stock (in accordance with subsection 3(a)), Series BB
Preferred Stock (in accordance with subsection 3(b)), Series CC Preferred Stock
(in accordance with subsection 3(c)) or the Series A Through E Preferred Stock
(in accordance with subsection 3(d)), as the case may be, each holder of
Preferred Stock being so converted shall surrender the certificate or
certificates therefor, duly endorsed, at the office of this Corporation or any
transfer agent for such holder and shall indicate in writing the name or names
in which the certificate or certificates for shares of Common Stock are to be
issued. This Corporation shall issue and deliver to each such holder, or to the
nominee or nominees of such holder, a certificate or certificates for the number
of shares of Common Stock to which such holder shall be entitled pursuant to
Section 3(a), 3(b), 3(c) or 3(d) above, and, in the case of a conversion of
Series A Through E Preferred Stock, shall pay to each holder of Series A
Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D
Preferred Stock, or Series E Preferred Stock (as applicable) the applicable Cash
Amount for each share of Series A Preferred Stock, Series B Preferred Stock,
Series C Preferred Stock, Series D Preferred Stock, or Series E Preferred Stock
(as applicable) held by such holder, payable by check or wire transfer within
ten (10) calendar days following such conversion. Such conversion shall be
deemed to have been made immediately prior to the close of business on the date
of such election to convert such Preferred Stock (or the date of automatic
conversion), and the holder entitled to receive the shares of Common Stock
issuable upon such conversion shall be treated for all purposes as the record
holder or holders of such shares of Common Stock as of such date. If the Series
A Through E Preferred Stock holders condition the conversion upon the closing of
an Initial Public Offering, then such conversion shall not be deemed to have
occurred until immediately prior to the closing of such Initial Public Offering.
If the Series A Through E Preferred Stock holders elect a conversion pursuant to
Section 3(c) and the funds of this Corporation legally available for payment of
the total Cash Amounts upon conversion of the Series A Preferred Stock, the
Series B Preferred Stock, the Series C Preferred Stock, the Series D Preferred
Stock, or Series E Preferred Stock (as applicable) are insufficient at the time
of such conversion to pay in full the total Cash Amounts required upon such
conversion, those funds that are legally available at such time, if any, shall
be applied ratably to the payment of the Cash Amounts, and, thereafter, when
additional funds of this Corporation become legally available for payment of the
remaining portion of such total



                                       7
<PAGE>


Cash Amounts, such funds shall be applied ratably to the payments of such
remaining Cash Amounts until they are paid in full.

                     (f) Conversion Ratio Adjustment for Preferred Stock. The
applicable ratio at which Common Stock shall be issued upon conversion of
Preferred Stock pursuant to Section 3(a), 3(b), 3(c) or 3(d) (the "Conversion
Ratio") shall be subject to adjustment from time to time as follows:

                            (i) In the event this Corporation shall at any time
or from time to time after the date upon which shares of any series of Preferred
Stock are first issued (the "Preferred Purchase Date") fix a record date for the
effectuation of a split or subdivision of the outstanding shares of Common Stock
or the determination of holders of Common Stock entitled to receive a dividend
or other distribution payable in additional shares of Common Stock or other
securities or rights convertible into, or entitling the holder hereof to receive
directly or indirectly, additional shares of Common Stock (hereinafter referred
to as "Common Stock Equivalents") without payment of any consideration by such
holder for the additional shares of Common Stock or the Common Stock Equivalents
(including the additional shares of Common Stock issuable upon conversion or
exercise thereof) then, as of such record date (or the date of such dividend
distribution, split or subdivision, if no record date is fixed), the Conversion
Ratio (or in the case of the Series AA Preferred Stock, the Series AA Conversion
Price, and the Series CC Preferred Stock, the Series CC Conversion Price) shall
be appropriately adjusted so that the number of shares of Common Stock issuable
upon conversion of each share of Series AA Preferred Stock, Series BB Preferred
Stock, Series CC Preferred Stock or Series A through E Preferred Stock shall be
increased in proportion to such increase of the aggregate of shares of Common
Stock outstanding and those issuable with respect to such Common Stock
Equivalents.

                            (ii) If the number of shares of Common Stock
outstanding at any time after the Preferred Purchase Date is decreased by a
combination of the outstanding shares of Common Stock, then following the record
date of such combination, the Conversion Ratio (or in the case of the Series AA
Preferred Stock, the Series AA Conversion Price, and the Series CC Preferred
Stock, the Series CC Conversion Price) shall be appropriately adjusted so that
the number of shares of Common Stock issuable upon conversion of each share of
Series AA Preferred Stock, Series BB Preferred Stock, Series CC Preferred Stock
or Series A Through E Preferred Stock shall be decreased in proportion to such
decrease in outstanding shares.

                            (iii) If at any time or from time to time after the
Preferred Purchase Date there shall be a recapitalization of the Common Stock
(other than a subdivision or combination provided for elsewhere in this Section
3), provision shall be made so that the holders of the Series AA Preferred
Stock, Series BB Preferred Stock, Series CC Preferred Stock or Series A Through
E Preferred Stock shall thereafter be entitled to receive, upon conversion of
such Series AA Preferred Stock, Series BB Preferred Stock, Series CC Preferred
Stock or Series A Through E Preferred Stock, the number of shares of stock or
other securities or property of this Corporation or otherwise, to which a holder
of Common Stock deliverable upon conversion would have been entitled on such
recapitalization. In any such case, an appropriate adjustment shall be made in
the application of the provisions of this Section 3



                                       8
<PAGE>


with respect to the rights of the holders of the Preferred Stock after the
recapitalization to the end that the provisions of this Section 3 (including
adjustment of the Conversion Ratio (or in the case of the Series AA Preferred
Stock, the Series AA Conversion Price, and the Series CC Preferred Stock, the
Series CC Conversion Price) then in effect and the number of shares purchasable
upon conversion of such Series AA Preferred Stock, Series BB Preferred Stock,
Series CC Preferred Stock or Series A Through E Preferred Stock) shall be
applicable after that event as nearly equivalent as may be practicable.

                            (iv) For each share of Series AA Preferred Stock,
the "Series AA Conversion Ratio" shall be expressed as a fraction, the numerator
of which shall equal $5.7319 and the denominator of which (the "Series AA
Conversion Price") shall initially equal $11.4638. For each share of Series CC
Preferred Stock, the "Series CC Conversion Ratio" shall be expressed as a
fraction, the numerator of which shall equal $3.131 and the denominator of which
(the "Series CC Conversion Price") shall initially equal $6.262. The Series AA
Conversion Price and the Series CC Conversion Price shall be subject to
adjustment pursuant to this subsection 3(f)(iv) and as otherwise provided by
this subsection 3(f).

                                   (1) (A) If this Corporation shall issue,
after the date on which any shares of Series CC Preferred Stock were first
issued (the "Series CC Purchase Date"), to any persons any Additional Stock (as
defined below in subsection 3(f)(iv)(2)) without consideration or for a
consideration per share less than the Series AA Conversion Price or the Series
CC Conversion Price in effect immediately prior to the issuance of such
Additional Stock, then the Series AA Conversion Price and the Series CC
Conversion Price, as applicable, in effect immediately prior to each such
issuance shall forthwith (except as otherwise provided in this subsection
3(f)(iv)(1)) be adjusted to a price determined by multiplying such Series AA
Conversion Price or Series CC Conversion Price, as applicable, by a fraction,
the numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such issuance plus the number of shares of Common Stock
that the aggregate consideration received by this Corporation for such issuance
would purchase at such Series AA Conversion Price or Series CC Conversion Price,
as applicable; and the denominator of which shall be the number of shares of
Common Stock outstanding immediately prior to such issuance plus the number of
shares of such Additional Stock actually issued.

                                          (B) No adjustment of the Series AA
Conversion Price or the Series CC Conversion Price shall be made in an amount
less than one hundredth of one cent per share, provided, that any adjustments
which are not required to be made by reason of this sentence shall be carried
forward and shall be either taken into account in any subsequent adjustment to
the Series AA Conversion Price or the Series CC Conversion Price, as the case
may be, made prior to three (3) years from the date of the event giving rise to
the adjustment being carried forward, or shall be made at the end of three (3)
years from the date of the event giving rise to the adjustment being carried
forward. Except to the limited extent provided for in subsections
3(f)(iv)(1)(E)(III) and 3(f)(iv)(1)(E)(IV), no adjustment of such Series AA
Conversion Price or Series CC Conversion Price pursuant to this subsection
3(f)(iv)(1) shall have the effect of increasing the Series AA Conversion Price
or the Series CC Conversion Price above the Series AA Conversion Price or the
Series CC Conversion Price, as applicable, in effect immediately prior to such
adjustment.



                                       9
<PAGE>


                                          (C) In the case of the issuance of
shares of Common Stock for cash, the consideration shall be deemed to be the
amount of cash paid therefor before deducting any reasonable discounts,
commissions or other expenses allowed, paid or incurred by this Corporation for
any underwriting or otherwise in connection with the issuance and sale thereof;
provided that any direct or indirect additional consideration paid by the
Corporation to the purchasers of the Common Stock that is not in consideration
for goods, services or other benefits provided by such purchasers pursuant to a
bona fide commercial arrangement on arms-length terms shall be deducted from the
amount of cash paid.

                                          (D) In the case of the issuance of
shares of Common Stock for a consideration in whole or in part other than cash,
the consideration other than cash shall be valued as follows: (i) in the case of
publicly-traded securities, the value shall be equal to the closing sale price
for such securities over the thirty (30) day period ending on the date
immediately prior to the closing of the transaction, or (ii) in all other cases,
the value of such consideration shall be the fair market value thereof as
reasonably determined in good faith by the Board of Directors of this
Corporation irrespective of any accounting treatment.

                                          (E) In the case of the issuance
(whether before, on or after the Series CC Purchase Date) of options, warrants
or other rights to purchase or subscribe for shares of Common Stock, securities
by their terms convertible into or exchangeable for shares of Common Stock or
options, warrants or other rights to purchase or subscribe for such convertible
or exchangeable securities, the following provisions shall apply for all
purposes of this subsection 3(f)(iv)(1) and subsection 3(f)(iv)(2):

                                                 I. The aggregate maximum number
of shares of Common Stock deliverable on exercise (assuming the satisfaction of
any conditions to exercisability, including, without limitation, the passage of
time, but without taking into account potential antidilution adjustments) of
such options, warrants or other rights to purchase or subscribe for shares of
Common Stock shall be deemed to have been issued at the time such options,
warrants or other rights were issued and for a consideration equal to the
consideration (determined in the manner provided in subsections 3(f)(iv)(1)(C)
and 3(f)(iv)(1)(D)) if any, received by this Corporation on the issuance of such
options, warrants or other rights plus the minimum exercise price provided in
such options, warrants or other rights (without taking into account potential
antidilution adjustments) for the Common Stock covered thereby.

                                                 II. The aggregate maximum
number of shares of Common Stock deliverable on conversion of, or in exchange
for (assuming the satisfaction of any conditions to convertibility or
exchangeability, including, without limitation, the passage of time, but without
taking into account potential antidilution adjustments), any such convertible or
exchangeable securities or on the exercise of options, warrants or other rights
to purchase or subscribe for such convertible or exchangeable securities and
subsequent conversion or exchange thereof shall be deemed to have been issued at
the time such securities were issued or such options, warrants or other rights
were issued and for a consideration equal to the consideration, if any, received
by this Corporation for any such securities and related options, warrants or
other rights (excluding any cash received on account of accrued interest or
accrued dividends), plus the minimum additional consideration, if any, to



                                       10
<PAGE>


be received by this Corporation (without taking into account potential
antidilution adjustments) on the conversion or exchange of such securities or
the exercise in full of any related options, warrants or other rights (the
consideration in each case to be determined in the manner provided in
subsections 3(f)(iv)(1)(C) and 3(f)(iv)(1)(D)).

                                                 III. In the event of any change
in the number of shares of Common Stock deliverable or in the consideration
payable to this Corporation on exercise of such options, warrants or other
rights or on conversion of, or in exchange for, such convertible or exchangeable
securities, including, but not limited to, a change resulting from the
antidilution provisions thereof, the Series AA Conversion Price and the Series
CC Conversion Price, to the extent in any way affected by or computed using such
options, warrants or other rights or securities, shall be recomputed to reflect
such change, but no further adjustment shall be made for the actual issuance of
Common Stock or any payment of such consideration on the exercise of any such
options, warrants or other rights or the conversion or exchange of such
securities.

                                                 IV. On the expiration of any
such options, warrants or other rights, the termination of any such rights to
convert or exchange or the expiration of any options, warrants or other rights
related to such convertible or exchangeable securities, the Series AA Conversion
Price and the Series CC Conversion Price, to the extent in any way affected by
or computed using such options, warrants or other rights or securities or
options, warrants or other rights related to such securities, shall be
recomputed to reflect the issuance of only the number of shares of Common Stock
(and convertible or exchangeable securities which remain in effect) actually
issued on the exercise of such options, warrants or other rights, on the
conversion or exchange of such securities or on the exercise of the options,
warrants or other rights related to such securities.

                                                 V. The number of shares of
Common Stock deemed issued and the consideration deemed paid therefore pursuant
to subsections 3(f)(iv)(1)(E)(I) and (II) shall be appropriately adjusted to
reflect any change, termination or expiration of the type described in either
subsection 3(f)(iv)(1)(E)(III) or (IV).

                                   (2) "Additional Stock" shall mean any shares
of Common Stock issued, or issuable on conversion of other securities issued, by
this Corporation after the Series CC Purchase Date other than the Excluded
Stock. "Excluded Stock" means the following:

                                          (A) shares of Common Stock issuable on
conversion of any Preferred Stock, option, warrant or other security of the
Company outstanding on the Series CC Purchase Date that is exercisable for, or
exchangeable or convertible into, Common Stock.

                                          (B) shares of Common Stock issued or
issuable in an Initial Public Offering, before or in connection with which all
outstanding shares of Series CC Preferred Stock will be converted to Common
Stock,



                                       11
<PAGE>


                                          (C) shares of Common Stock issuable in
any transaction that a majority of the members of the Board of Directors that
are not employed by the Company at such time (the "Outside Directors")
specifically determines in good faith (as reflected in a Board resolution) adds
substantial strategic value to the operations of the Company and pursuant to
which the Corporation acquires substantially all of the outstanding common stock
or other equity interests of any other corporation or entity not affiliated with
the Corporation or any substantial portion of the assets of any such entity,

                                          (D) shares of Common Stock issued to
any person or entity that is not affiliated with the Corporation which a
majority of the Outside Directors specifically determines in good faith (as
reflected in a Board resolution) (i) adds substantial strategic value to the
operations of the Corporation and (ii) is not principally a capital raising
transaction, and

                                          (E) Common Stock of this Corporation
issued or to be issued pursuant to any bona fide stock option plan, employee
incentive plan, restricted stock plan or other agreement approved by the Board
of Directors of this Corporation to employees, officers or directors of the
Corporation or any subsidiary or to consultants or advisors of the Corporation
or any subsidiary as reasonable compensation for services rendered.

                     (g) No Impairment. This Corporation will not, by amendment
of its Certificate of Incorporation or through any reorganization,
recapitalization, transfer of assets, consolidation, merger, dissolution, issue
or sale of securities, or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed
hereunder by this Corporation, but will at all times in good faith assist in the
carrying out of all the provisions hereof and in the taking of all such actions
as may be necessary or appropriate in order to protect the conversion rights of
the holders of the Series AA Preferred Stock, Series BB Preferred Stock, Series
CC Preferred Stock or Series A Through E Preferred Stock against impairment.

                     (h) No Fractional Shares. No fractional shares shall be
issued upon conversion of the Series AA Preferred Stock, Series BB Preferred
Stock, Series CC Preferred Stock or Series A Through E Preferred Stock and the
number of shares of Common Stock to be issued shall be rounded to the nearest
whole share. Such rounding shall be based on the total number of shares of
Series AA Preferred Stock, Series BB Preferred Stock, Series CC Preferred Stock
or Series A Through E Preferred Stock such holder is converting into Common
Stock and the number of shares of Common Stock issuable upon such aggregate
conversion.

                     (i) Reservation of Stock Issuable Upon Conversion. This
Corporation shall at all times reserve and keep available out of its authorized
but unissued shares of Common Stock solely for the purpose of effecting the
conversion of the Preferred Stock such number of its shares of Common Stock as
shall from time to time be sufficient to effect the conversion of all
outstanding shares of Preferred Stock; and if at any time the number of
authorized but unissued shares of Common Stock shall not be sufficient to effect
the conversion of all then outstanding shares of Preferred Stock, in addition to
such other remedies as shall be available to the holder of such Preferred Stock,
this Corporation will take such corporate action



                                       12
<PAGE>


as may, in the opinion of its counsel, be necessary to increase its authorized
but unissued shares of Common Stock to such number of shares as shall be
sufficient for such purposes.

              (4) Notices of Record Date. In the event of any taking by this
Corporation of a record of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any
dividend (other than a cash dividend) or other distribution, any right to
subscribe for, purchase or otherwise acquire any shares of stock of any class or
any other securities or property, or to receive any other right, this
Corporation shall mail to each applicable holder of Preferred Stock, at least
twenty (20) days prior to the date specified therein, a notice specifying the
date on which such record is to be taken for the purpose of such dividend,
distribution or right, and the amount and character of such dividend,
distribution or right.

              (5) Voting Rights. The Common Stock, the Series AA Preferred
Stock, the Series BB Preferred Stock, the Series CC Preferred Stock, the Series
A Preferred Stock, the Series B Preferred Stock, the Series C Preferred Stock,
the Series D Preferred Stock, and the Series E Preferred Stock will vote
together as a single class on all matters submitted for stockholder consent or
approval. The holder of each share of Series AA Preferred Stock, Series BB
Preferred Stock and Series CC Preferred Stock shall have one vote for each share
of Common Stock into which such share of Series AA Preferred Stock, Series BB
Preferred Stock and Series CC Preferred Stock could then be converted (with any
fractional share determined on an aggregate conversion basis being rounded to
the nearest whole share). The holder of each share of Series A Preferred Stock,
each share of Series B Preferred Stock, each share of Series C Preferred Stock,
each share of Series D Preferred Stock, and each share of Series E Preferred
Stock shall have ten (10) votes for each share of Common Stock into which such
Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock,
Series D Preferred Stock, or Series E Preferred Stock (as applicable) could then
be converted (with any fractional share determined on an aggregate conversion
basis being rounded to the nearest whole share). With respect to such votes by
the holders of such Preferred Stock, each such share shall have full voting
rights and powers equal to the voting rights and powers of such number of shares
of Common Stock, and the holders thereof shall be entitled, notwithstanding any
provision hereof, to notice of any stockholders' meeting in accordance with the
bylaws of this Corporation, and shall be entitled to vote, together with holders
of Common Stock, with respect to any question upon which holders of Common Stock
have the right to vote.

              (6) Protective Provisions.

                     (a) In addition to the vote provided for pursuant to
Section 5 above, and subject to the rights of series of Preferred Stock which
may from time to time come into existence, so long as any shares of Series A
Through E Preferred Stock, Series AA Preferred Stock, Series BB Preferred Stock
or Series CC Preferred Stock (each, a "Class") are outstanding, this Corporation
shall not, without first obtaining the approval (by vote or written consent, as
provided by law) of the holders of at least a majority of the voting power of
the then outstanding shares of such Class:

                            (i) increase the authorized number of shares of any
series of Preferred Stock;



                                       13
<PAGE>


                            (ii) create any new class or series of capital
stock, equity securities or any other securities convertible into capital stock
or equity securities of this Corporation (by reclassification or otherwise),
which capital stock or equity securities have a preference over or are on parity
with such Class with respect to voting, dividends, conversion, redemption or
upon liquidation;

                            (iii) redeem or repurchase any other class or series
of stock that is not expressly designated as senior to such Class in rights upon
the liquidation, dissolution or winding up of this Corporation prior to such
Class; or

                            (iv) alter or change the rights, preferences or
privileges of such Class (including such rights, preferences and privileges
conferred by Article IV) so as to adversely affect such shares of Preferred
Stock in such Class.

For purposes of clause (ii) above, this Corporation shall be deemed not to have
issued any new class of stock or equity securities (including upon the
conversion of convertible securities) ("New Securities") that have a preference
over or are on parity with any Class,

                                   (1) with respect to dividends, if such class
of New Securities is not entitled to any dividends other than a proportionate
share of any dividend declared on the Common Stock, which proportion shall be
determined in accordance with the number of shares of Common Stock into which
such New Securities are convertible;

                                   (2) with respect to conversion, if (x) such
class of New Securities is convertible only into Common Stock at a conversion
price initially not less than the liquidation preference thereof (or at a
conversion ratio not less than one share of Common Stock for each share of such
New Securities) and are automatically converted into Common Stock upon an
Initial Public Offering and (y) any adjustment to such conversion price or
conversion ratio shall be on terms no more favorable to the holders of such New
Securities than as provided in Article IV(B)(3)(f) hereof;

                                   (3) with respect to voting,

                                          (A) with respect to matters submitted
to shareholders of this Corporation generally, if such class of New Securities
has a number of votes on such matters in accordance with the number of shares of
Common Stock into which such New Securities are convertible; and

                                          (B) such class of New Securities is
entitled to approve certain matters voting as a single class, including matters
submitted to the other Classes (or any of them), so long as (I) such New
Securities do not participate with any other Class in voting on any matters
submitted to such other Class for approval and on which such other Class is
entitled to approve as a single class and (II) all other Classes have the right
to approve as a single class any matter that such New Securities have the right
to approve as a single class (or all such Classes that do not have such right
are granted such right at the time such class of New Securities is created);
and



                                       14
<PAGE>


                                   (4) with respect to redemption, such class of
New Securities is not redeemable.

                     (b) In addition to the votes provided for pursuant to
Section 5 and Section 6 above, and subject to the rights of series of Preferred
Stock which may from time to time come into existence, so long as any shares of
Series CC Preferred Stock are outstanding, this Corporation shall not, without
the approval (by vote or written consent, as provided by law) of at least a
majority of the voting power of the then outstanding shares of the Series CC
Preferred Stock, voting together as a single class (with respect to clause (ii)
below, such approval not to be unreasonably withheld):

                            (i) (A) sell all or substantially all of its assets
or (B) approve any merger or consolidation of the Corporation whereby (1) the
Corporation is not the surviving entity and (2) more than 50% of voting power of
the surviving entity immediately after such transaction is not held by the
Corporation's stockholders immediately prior to such transaction unless the
consideration to be paid is $6.26 or more for (I) each share of Series CC
Preferred Stock or (II) that number of shares of Common Stock into which each
share of the Series CC Preferred Stock is then convertible at the Series CC
Conversion Ratio. In the event that non-cash consideration is payable in
connection with such transaction, such consideration shall, (i) in the case of
publicly-traded securities, be valued at a price equal to the closing sale price
for such securities over the thirty (30) day period ending on the date
immediately prior to the closing of the transaction, or (ii) in all other cases,
have the fair value reasonably determined in good faith by the Board of
Directors; or

                            (ii) undertake a public offering of its equity
securities, unless such public offering satisfies the conditions set forth in
the definition of Initial Public Offering in Subsection 3(a).

       (C) Common Stock.

              (1) Dividend Rights. Subject to the prior rights of holders of all
classes of stock at the time outstanding having prior rights as to dividends,
the holders of the Common Stock shall be entitled to receive, only when and if
declared by the Board of Directors, out of any assets of the Corporation legally
available therefore, such dividends as may be declared from time to time by the
Board of Directors.

              (2) Liquidation Rights. Upon the liquidation, dissolution or
winding up of this Corporation, the assets if this Corporation shall be
distributed as provided in Section B(2) of Article IV of this Certificate of
Incorporation.

              (3) Redemption. The Common Stock is not redeemable.

              (4) Voting Rights. Each share of Common Stock shall entitle the
holder thereof to one (1) vote and to vote upon such matters and in such manner
as may be provided by law.

       (D) Reverse Stock Split. Upon the filing of this Amended and Restated
Certificate of Incorporation of the Corporation in the Office of the Secretary
of State of the State



                                       15
<PAGE>


of Delaware (the "Effective Time"), and without any further action on the part
of the Corporation or any holder, each share of common stock, $0.01 par value
per share, of the Corporation issued immediately prior to the Effective Time
(the "Pre-Existing Common Stock") shall be automatically converted into 1/2 (one
half) of a share of Common Stock (the "Reverse Stock Split") without any further
action by the holders of such shares and whether or not such shares are
surrendered to the Corporation. Each stock certificate that, immediately prior
to the Effective Time, represented shares of Pre-Existing Common Stock shall,
from and after the Effective Time, automatically and without the necessity of
presenting the same for exchange, represent that number of shares of Common
Stock into which the shares of Pre-Existing Common Stock represented by such
certificate shall have been converted; provided, that each person of record
holding a certificate that represented shares of Pre-Existing Common Stock shall
receive, upon surrender of such certificate to the Corporation, a new
certificate evidencing and representing the number of shares of Common Stock
into which the shares of Pre-Existing Common Stock represented by such
certificate shall have been converted pursuant hereto. No fractional shares of
Common Stock shall be issued in connection with the Reverse Stock Split. Upon
the completion of an Initial Public Offering and upon surrender to the
Corporation of a certificate formerly representing shares of Pre-existing Common
Stock, the Corporation shall pay to the holder of the certificate an amount in
cash (without interest) equal to the product obtained by multiplying (a) the
fraction of a share of Common Stock to which such holder (after taking into
account all shares of Pre-Existing Common Stock held immediately prior to the
Effective Time by such holder) would otherwise be entitled, by (b) the price per
share of Common Stock in the Initial Public Offering.

                                    ARTICLE V
                              AMENDMENTS TO BYLAWS

       Except as otherwise provided in this Certificate of Incorporation, in
furtherance and not in limitation of the powers conferred by statute, the Board
of Directors is expressly authorized to make, repeal, alter, amend and rescind
any or all of the bylaws of this Corporation.

                                   ARTICLE VI
                               NUMBER OF DIRECTORS

       The number of directors of this Corporation shall be fixed from time to
time by a bylaw or amendment thereof duly adopted by the Board of Directors or
by the stockholders of this Corporation.

                                   ARTICLE VII
                             ELECTIONS OF DIRECTORS

       Elections of Directors need not be by written ballot unless the bylaws of
this Corporation shall so provide.

                                  ARTICLE VIII
                            MEETINGS OF STOCKHOLDERS

       Meetings of Stockholders may be held within or outside the State of
Delaware, as the bylaws may provide. The books of this Corporation may be kept
(subject to any provision



                                       16
<PAGE>


contained in the applicable statutes) outside the State of Delaware at such
place or places as may be designated from time to time by the Board of Directors
or in the bylaws of this Corporation.

                                   ARTICLE IX
                             LIABILITY OF DIRECTORS

       A director of this Corporation shall not be personally liable to this
Corporation or its stockholders for monetary damages for breach of fiduciary
duty as a director, except for liability: (i) for any breach of the director's
duty of loyalty to this Corporation or its stockholders, (ii) for acts or
omissions not in good faith or which involve intentional misconduct or a knowing
violation of law, (iii) under Section 174 of the General Corporation Law, or
(iv) for any transaction from which the director derived any improper personal
benefit. If the General Corporation Law is amended after approval by the
stockholders of this Article IX to authorize corporate action further
eliminating or limiting the personal liability of directors, then the liability
of a director of this Corporation shall be eliminated or limited to the fullest
extent permitted by the General Corporation Law as so amended.

       Any repeal or modification of the foregoing provisions of this Article IX
by the stockholders of this Corporation shall not adversely affect any right or
protection of a director of this Corporation existing at the time of such repeal
or modification.

                                    ARTICLE X
                                    AMENDMENT

       Subject to the rights granted to the stockholders pursuant to the
Protective Provisions, this Corporation reserves the right to amend, alter,
change or repeal any provision contained in this Certificate of Incorporation,
in the manner now or hereafter prescribed by statute, and all rights conferred
upon stockholders herein are granted subject to this reservation.

                                   CERTIFICATE

       This Amended and Restated Certificate of Incorporation, including the
Amendments thereto, has been duly adopted in accordance with Sections 242 and
245 of the Delaware General Corporation Law by the written consent of a majority
of the stockholders entitled to vote, including each class or series entitled to
vote as a separate class or series, in accordance with the provisions of Section
228 of the Delaware General Corporation Law, and written notice of such
corporate action has been given to each stockholder of the Corporation who has
not so consented in writing.



                                       17
<PAGE>


       IN WITNESS WHEREOF, said Corporation has caused this Certificate to be
signed by N. Robert Hammer, its Chairman and CEO and attested by Louis Miceli,
its Secretary, this 13th day of September, 2006.



                                        COMMVAULT SYSTEMS, INC.



                                        By: /s/ N. Robert Hammer
                                            Name: N. Robert Hammer
                                            Chairman and CEO



ATTEST:



By: /s/ Louis Miceli
    Name: Louis Miceli
    Secretary




</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.2
<SEQUENCE>4
<FILENAME>y24537a5exv3w2.txt
<DESCRIPTION>EX-3.2: FORM OF AMENDED AND RESTATED CERTIFICATE OF INCORPORATION
<TEXT>
<PAGE>
                                                                     EXHIBIT 3.2

                              AMENDED AND RESTATED
                          CERTIFICATE OF INCORPORATION
                           OF COMMVAULT SYSTEMS, INC.

      CommVault Systems, Inc., a corporation organized and existing under the
laws of the State of Delaware, hereby certifies as follows:

      A. The name of the corporation is CommVault Systems, Inc. The Corporation
was originally incorporated under the name CV Systems, Inc. and the original
Certificate of Incorporation was filed with the Secretary of State of the State
of Delaware on April 19, 1996.

      B. This Certificate of Incorporation has been duly adopted in accordance
with Sections 228, 242 and 245 of the General Corporation Law of the State of
Delaware by the Board of Directors and the Stockholders of the Corporation.

      C. This Amended and Restated Certificate of Incorporation restates,
integrates and amends the Amended and Restated Certificate of Incorporation of
this Corporation such that the text of the Amended and Restated Certificate of
Incorporation shall now read in its entirety as follows:

                                   ARTICLE I

      The name of the Corporation is CommVault Systems, Inc.

                                   ARTICLE II

      The address of the Corporation's registered office in the State of
Delaware is 2711 Centerville Road, Suite 400, in the City of Wilmington, County
of New Castle, Delaware 19808. The name of its registered agent at such address
is The Prentice-Hall Corporation System, Inc.

                                  ARTICLE III

      The purpose of the Corporation is to engage in any lawful act or activity
for which a corporation may be organized under the General Corporation Law of
Delaware.

                                   ARTICLE IV

Authorized Capital. The Corporation is authorized to issue two classes of stock,
designated "Preferred Stock" and "Common Stock." The total number of shares
which the Corporation shall have authority to issue is 300,000,000, of which
250,000,000 shares shall be Common Stock, with a par value of $0.01 per share,
and 50,000,000 shares shall be Preferred Stock, with a par value of $0.01 per
share.

Preferred Stock. The Preferred Stock may be issued from time to time in one or
more series pursuant to a resolution or resolutions providing for such issue
duly adopted by the Board of Directors (authority to do so being hereby
expressly vested in the Board of Directors). The Board

<PAGE>

of Directors is further authorized to, by filing a certificate pursuant to the
General Corporation Law of the State of Delaware, determine or alter the
designation, powers, privileges, preferences and rights of the shares of each
such series and the qualifications, limitations and restrictions granted to or
imposed upon any wholly unissued series of Preferred Stock and to fix the number
of shares of any series of Preferred Stock and the designation of any such
series of Preferred Stock. The Board of Directors, within the limits and
restrictions stated in any resolution or resolutions of the Board of Directors
originally fixing the number of shares constituting any series, may increase or
decrease (but not below the number of shares in any such series then
outstanding) the number of shares of any series subsequent to the issue of
shares of that series.

Common Stock. Except as otherwise provided in this Certificate of Incorporation
or by applicable law, the holders of Common Stock shall be entitled to vote on
each matter on which the stockholders of the Corporation shall be entitled to
vote, and each holder of Common Stock shall be entitled to one vote for each
share of such stock held by such holder. Each share of Common Stock issued and
outstanding shall be identical in all respects one with the other, and no
dividends shall be paid on any shares of Common Stock unless the same dividend
is paid on all shares of Common Stock outstanding at the time of such payment.
Except for and subject to those rights expressly granted to the holders of
shares of Preferred Stock, or except as may be provided by the laws of the State
of Delaware, the holders of Common Stock shall have exclusively all other rights
of stockholders including, but not by way of limitation, (a) the right to
receive dividends, when and as declared by the Board of Directors out of assets
lawfully available therefor, and (b) in the event of any distribution of assets
upon a liquidation or otherwise, the right to receive ratably and equally all
the assets and funds of the Corporation remaining after the payment to the
holders of shares of Preferred Stock of the specific amounts which they are
entitled to receive upon such liquidation.

Ownership. The Corporation shall be entitled to treat the person in whose name
any share of its stock is registered as the owner thereof for all purposes and
shall not be bound to recognize any equitable or other claim to, or interest in,
such share on the part of any other person, whether or not the Corporation shall
have notice thereof, except as expressly provided by applicable law.

                                   ARTICLE V

      Elections of directors need not be by written ballot unless the Bylaws of
the Corporation shall so provide.

                                   ARTICLE VI

      (a) The management of the business and the conduct of the affairs of the
Corporation shall be vested in its Board of Directors. The number of directors
which constitute the whole Board of Directors of the Corporation shall be
designated in the Bylaws of the Corporation.

      (b) The Board of Directors shall be divided into three classes, as nearly
equal in size as possible, designated as Class I, Class II and Class III,
respectively. Directors shall initially be assigned to each class in accordance
with a resolution or resolutions adopted by the Board of Directors. At the first
annual meeting of stockholders following the date hereof, the term of office of
the Class I directors shall expire and Class I directors shall be elected for a
full term of


                                        2
<PAGE>

three years. At the second annual meeting of stockholders following the date
hereof, the term of office of the Class II directors shall expire and Class II
directors shall be elected for a full term of three years. At the third annual
meeting of stockholders following the date hereof, the term of office of the
Class III directors shall expire and Class III directors shall be elected for a
full term of three years. At each succeeding annual meeting of stockholders,
directors shall be elected for a full term of three years to succeed the
directors of the class whose terms expire at such annual meeting.

      (c) Notwithstanding the foregoing provisions of this Article VI, each
director shall serve until his or her successor is duly elected and qualified or
until his or her death, resignation or removal. No decrease in the number of
directors constituting the Board of Directors shall shorten the term of any
incumbent director.

      (d) Any vacancies on the Board of Directors resulting from death,
resignation, disqualification, removal or other causes shall be filled by the
affirmative vote of a majority of the remaining directors then in office, even
though less than a quorum of the Board of Directors and not by the stockholders.
Newly created directorships resulting from any increase in the number of
directors shall be filled by the affirmative vote of the directors then in
office, even though less than a quorum of the Board of Directors and not by the
stockholders. Any director elected in accordance with this Article VI (d) shall
hold office for the remainder of the full term of the class of directors in
which the new directorship was created or the vacancy occurred and until such
director's successor shall have been elected and qualified.

      (e) Any director, or the entire Board of Directors, may be removed from
office at any time only for cause by the affirmative vote of the holders of at
least sixty-six and two-thirds percent (66-2/3%) of the voting power of all of
the then-outstanding shares of the Voting Stock, voting together as a single
class. As used herein, the term "Voting Stock" means the voting power of the
then outstanding shares of voting stock of the corporation entitled to vote
generally in the election of directors.

                                  ARTICLE VII

      The Corporation reserves the right to amend, alter, change or repeal any
provision contained in this Certificate of Incorporation, in the manner now or
hereafter prescribed by statute, and except as provided in the next sentence of
this Article VII and Article IX, all rights conferred upon the stockholders,
directors or any other persons herein are granted subject to this right.
Notwithstanding any other provisions of this Certificate of Incorporation or any
provision of law which might otherwise permit a lesser vote or no vote, but in
addition to any affirmative vote of the holders of any particular class or
series of the Voting Stock required by law, this Certificate of Incorporation or
any Preferred Stock Designation, the affirmative vote of the holders of at least
sixty-six and two-thirds percent (66-2/3%) of the voting power of all of the
then-outstanding shares of the Voting Stock, voting together as a single class,
shall be required to alter, amend or repeal Article VI, this Article VII,
Article VIII, Article XI, Article XII and Article XIII.


                                       3
<PAGE>

                                  ARTICLE VIII

      In furtherance and not in limitation of the powers conferred by statute,
the Board of Directors is expressly authorized to make, alter, amend or repeal
the Bylaws of the Corporation.

                                   ARTICLE IX

      (a) To the fullest extent permitted by the General Corporation Law of the
State of Delaware as the same exists or as may hereafter be amended, no director
of the Corporation or any subsidiary of the Corporation shall be personally
liable to the Corporation or its stockholders and shall otherwise be indemnified
by the Corporation for monetary damages for breach of fiduciary duty as a
director of the Corporation, any predecessor of the Corporation or any
subsidiary of the Corporation.

      (b) The Corporation shall indemnify to the fullest extent permitted by law
any person made or threatened to be made a party to an action or proceeding,
whether criminal, civil, administrative or investigative, by reason of the fact
that such person, such person's testator or intestate is or was a director or
officer of the Corporation, any predecessor of the Corporation or any subsidiary
of the Corporation or serves or served at any other enterprise as a director or
officer at the request of the Corporation, any predecessor to the Corporation or
any subsidiary of the Corporation.

      (c) Neither any amendment nor repeal of this Article IX, nor the adoption
of any provision of the Corporation's Certificate of Incorporation inconsistent
with this Article IX shall eliminate or reduce the effect of this Article IX, in
respect of any matter occurring, or any action or proceeding accruing or arising
or that, but for this Article IX, would accrue or arise, prior to such
amendment, repeal, or adoption of an inconsistent provision.

                                   ARTICLE X

      Meetings of stockholders may be held within or without the State of
Delaware, as the Bylaws of the Corporation may provide. The books of the
Corporation may be kept (subject to any provision of applicable law) outside of
the State of Delaware at such place or places as may be designated from time to
time by the Board of Directors or in the Bylaws of the Corporation. No action
shall be taken by the stockholders of the Corporation except at an annual or
special meeting of the stockholders called in accordance with the Bylaws of the
Corporation.

                                   ARTICLE XI

      Advance notice of new business and stockholder nominations for the
election of directors shall be given in the manner and to the extent provided in
the Bylaws of the Corporation. Except as otherwise required by law, special
meetings of the stockholders may be called only by (i) the Board of Directors
pursuant to a resolution approved by the affirmative vote of a majority of the
directors then in office, (ii) the Chairman of the Board, if one is elected, or
(iii) the Chief Executive Officer. Only those matters set forth in the notice of
the special meeting may be considered or acted upon at such special meeting,
unless otherwise provided by law.


                                       4
<PAGE>


                                  ARTICLE XII

      Stockholders shall not be entitled to cumulative voting rights for the
election of directors.

                                  ARTICLE XIII

      The Board of Directors of the Corporation, when evaluating any offer of
another person to (A) make a tender or exchange offer for any equity security of
the Corporation, (B) merge or consolidate the Corporation with another
corporation or entity or (C) purchase or otherwise acquire all or substantially
all of the properties and assets of the Corporation, may, in connection with the
exercise of its judgment in determining what is in the best interest of the
Corporation and its stockholders, give due consideration to all relevant
factors, including, without limitation, those factors that Directors of any
subsidiary of the Corporation may consider in evaluating any action that may
result in a change or potential change in the control of the subsidiary, the
social and economic effect of acceptance of such offer on the Corporation's
present and future customers, creditors, suppliers and employees and on the
communities in which the Corporation operates or is located and the ability of
the Corporation to fulfill its corporate objective under applicable laws and
regulations and a comparison of the proposed consideration to be received by
stockholders in relation to the then current market price of the Corporation's
capital stock.


                                       5
<PAGE>

      IN WITNESS WHEREOF, said Corporation has caused this Certificate to be
signed by N. Robert Hammer, its Chairman and Chief Executive Officer, and
attested by Warren H. Mondschein, its Secretary, the ____ day of __________,
2006.

                                     COMMVAULT SYSTEMS, INC.



                                     By:
                                         ---------------------------------------
                                         Name:  N. Robert Hammer
                                         Chairman and Chief Executive Officer


ATTEST:

By:
    -----------------------------
    Name:  Warren H. Mondschein
    Secretary


                                       6
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.3
<SEQUENCE>5
<FILENAME>y24537a5exv3w3.txt
<DESCRIPTION>EX-3.3: FORM OF AMENDED AND RESTATED BYLAWS
<TEXT>
<PAGE>
                                                                     EXHIBIT 3.3

                              AMENDED AND RESTATED
                                     BYLAWS

                                       OF

                            COMMVAULT SYSTEMS, INC.,
                             A DELAWARE CORPORATION

                                [______ __], 2006

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                                PAGE
                                                                                                                                ----
<S>          <C>                                                                                                                <C>
ARTICLE I      CORPORATE OFFICES...................................................................................................1

  1.1        Registered Office.....................................................................................................1

  1.2        Other Offices.........................................................................................................1

ARTICLE II     MEETINGS OF STOCKHOLDERS............................................................................................1

  2.1        Place of Meetings.....................................................................................................1

  2.2        Annual Meeting........................................................................................................1

  2.3        Special Meeting.......................................................................................................2

  2.4        Notice of Stockholders' Meetings......................................................................................2

  2.5        Advance Notice of Stockholder Nominees and Stockholder Business.......................................................2

  2.6        Conduct of Business...................................................................................................3

  2.7        Quorum................................................................................................................3

  2.8        Voting................................................................................................................4

  2.9        Advisory Stockholder Votes............................................................................................4

  2.10       Voting Procedures and Inspections of Elections........................................................................4

  2.11       Stockholder Action by Written Consent Without a Meeting...............................................................5

  2.12       Record Date for Stockholder Notice; Voting............................................................................5

  2.13       Proxies...............................................................................................................5

  2.14       List of Stockholders Entitled to Vote.................................................................................5

ARTICLE III    DIRECTORS...........................................................................................................6

  3.1        Powers................................................................................................................6

  3.2        Number................................................................................................................6

  3.3        Classes of Directors..................................................................................................6

  3.4        Resignation and Vacancies.............................................................................................7

  3.5        Place of Meetings; Meetings by Telephone..............................................................................7

  3.6        Meetings..............................................................................................................7

  3.7        Quorum................................................................................................................7

  3.8        Waiver of Notice......................................................................................................8

  3.9        Adjourned Meeting; Notice.............................................................................................8

  3.10       Conduct of Business...................................................................................................8

  3.11       Action by Means of Conference Telephone or Similar Communications Equipment...........................................8
</TABLE>

                                       -i-
<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                                                                PAGE
                                                                                                                                ----
<S>          <C>                                                                                                                <C>
  3.12       Board Action by Written Consent Without a Meeting.....................................................................8

  3.13       Fees and Compensation of Directors....................................................................................9

  3.14       Removal of Directors..................................................................................................9

ARTICLE IV     COMMITTEES..........................................................................................................9

  4.1        Committees of Directors...............................................................................................9

  4.2        Committee Minutes.....................................................................................................9

  4.3        Meetings and Action of Committees.....................................................................................9

ARTICLE V      OFFICERS...........................................................................................................10

  5.1        Officers.............................................................................................................10

  5.2        Appointment of Officers..............................................................................................10

  5.3        Removal and Resignation of Officers..................................................................................10

  5.4        Chairman of the Board................................................................................................10

  5.5        Chief Executive Officer..............................................................................................11

  5.6        President............................................................................................................11

  5.7        Vice President.......................................................................................................11

  5.8        Secretary............................................................................................................12

  5.9        Chief Financial Officer..............................................................................................12

  5.10       Assistant Secretary..................................................................................................12

  5.11       Controller...........................................................................................................12

  5.12       Authority and Duties of Officers.....................................................................................13

ARTICLE VI     INDEMNITY..........................................................................................................13

  6.1        Third Party Actions..................................................................................................13

  6.2        Actions by or in the Right of the Corporation........................................................................13

  6.3        Successful Defense...................................................................................................14

  6.4        Determination of Conduct.............................................................................................14

  6.5        Payment of Expenses in Advance.......................................................................................14

  6.6        Indemnity Not Exclusive..............................................................................................14

  6.7        Insurance Indemnification............................................................................................14

  6.8        The Corporation......................................................................................................15

  6.9        Employee Benefit Plans; Fines; Serving at the Request of the Corporation.............................................15

  6.10       Continuation of Indemnification and Advancement of Expenses..........................................................15
</TABLE>

                                      -ii-
<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                                                                PAGE
                                                                                                                                ----
<S>          <C>                                                                                                                <C>
  6.11       Severability.........................................................................................................15

ARTICLE VII    RECORDS AND REPORTS................................................................................................16

  7.1        Maintenance and Inspection of Records................................................................................16

  7.2        Inspection by Directors..............................................................................................16

  7.3        Representation of Shares of Other Corporations.......................................................................16

ARTICLE VIII   GENERAL MATTERS....................................................................................................17

  8.1        Checks...............................................................................................................17

  8.2        Execution of Corporate Contracts and Instruments.....................................................................17

  8.3        Stock Certificates; Partly Paid Shares...............................................................................17

  8.4        Special Designation on Certificates..................................................................................18

  8.5        Lost Certificates....................................................................................................18

  8.6        Construction; Definitions............................................................................................18

  8.7        Dividends............................................................................................................18

  8.8        Fiscal Year..........................................................................................................18

  8.9        Seal.................................................................................................................19

  8.10       Transfer of Stock....................................................................................................19

  8.11       Stock Transfer Agreements............................................................................................19

  8.12       Registered Stockholders..............................................................................................19

ARTICLE IX     AMENDMENTS.........................................................................................................19

  9.1        Amendments...........................................................................................................19
</TABLE>

                                      -iii-
<PAGE>

                              AMENDED AND RESTATED
                                     BYLAWS

                                       OF

                            COMMVAULT SYSTEMS, INC.,
                             A DELAWARE CORPORATION

                                    ARTICLE I

                                CORPORATE OFFICES

      1.1 REGISTERED OFFICE

      The registered office of the Corporation shall be 2711 Centerville Road,
Suite 400, in the City of Wilmington, County of New Castle, State of Delaware
19808. The name of the registered agent of the Corporation at such location is
The Prentice-Hall Corporation System, Inc.

      1.2 OTHER OFFICES

      The Board of Directors may at any time establish other offices at any
place or places where the Corporation is qualified to do business.

                                   ARTICLE II

                            MEETINGS OF STOCKHOLDERS

      2.1 PLACE OF MEETINGS

      Meetings of stockholders shall be held at any place, within or outside the
State of Delaware, designated by the Board of Directors. In the absence of any
such designation, stockholders' meetings shall be held at the registered office
of the Corporation.

      2.2 ANNUAL MEETING

      The annual meeting of stockholders shall be held each year on a date and
at a time designated by the Board of Directors. At the meeting, Directors shall
be elected and any other proper business may be transacted.

<PAGE>

      2.3 SPECIAL MEETING

      Except as otherwise required by law, special meetings of the stockholders
may be called only in accordance with the provisions of the Corporation's
Amended and Restated Certificate of Incorporation as amended from time to time
in the manner set forth therein and in the General Corporation Law of Delaware
(the "Certificate").

      2.4 NOTICE OF STOCKHOLDERS' MEETINGS

      Except as otherwise required by law or by the Certificate or these Bylaws,
notice of each annual or special meeting of the stockholders shall be given to
each stockholder of record entitled to vote at such meeting not less than 10 nor
more than 60 days before the day on which the meeting is to be held by
delivering written notice thereof to him or her personally, or by mailing a copy
of such notice, postage prepaid, directly to him or her at his or her address as
it appears in the records of the Corporation, or by transmitting such notice
thereof to him or her at such address by telegraph, cable or other telephonic
transmission. Every such notice shall state the place, the date and hour of the
meeting and, in case of a special meeting, the purpose or purposes for which the
meeting is called. Except as otherwise required by law, notice of any meeting of
stockholders shall not be required to be given to any stockholder who attends
such meeting in person or by proxy or who shall, in person or by duly authorized
attorney, waive such notice in writing, either before or after such meeting.
Except as otherwise required by law or provided in these Bylaws, neither the
business to be transacted at, nor the purpose of, any meeting of the
stockholders need be specified in any such notice or waiver of notice. Notice of
any adjourned meeting of stockholders shall not be required to be given, except
when expressly required by law or these Bylaws. An affidavit of the Secretary or
an Assistant Secretary or of the transfer agent of the Corporation that the
notice has been given shall, in the absence of fraud, be prima facie evidence of
the facts stated therein.

      2.5 ADVANCE NOTICE OF STOCKHOLDER NOMINEES AND STOCKHOLDER BUSINESS

      If a stockholder desires to submit a proposal for consideration at an
annual or special stockholders' meeting, or to nominate persons for election as
Directors at any stockholders' meeting duly called for the election of
Directors, written notice of such stockholder's intent to make such a proposal
or nomination must be given and received by the Secretary at the principal
executive offices of the Corporation either by personal delivery or by United
States mail not later than (i) with respect to an annual meeting of
stockholders, 90 days prior to the anniversary date of the date on which notice
of the prior year's annual meeting was mailed to stockholders, and (ii) with
respect to a special meeting of stockholders, the close of business on the tenth
day following the date on which notice of such meeting is first sent or given to
stockholders. Each notice shall describe the proposal or nomination in
sufficient detail for the proposal or nomination to be summarized on the agenda
for the meeting and shall set forth: (i) the name and address, as it appears on
the books of the Corporation, of the stockholder who intends to make the
proposal or nomination; (ii) a representation that the stockholder is a holder
of record of stock of the Corporation entitled to vote at such meeting and
intends to appear in person or by proxy at the meeting to present such proposal
or nomination; (iii) whether the stockholder plans to deliver or solicit proxies
from other stockholders; and (iv) the class and number of shares of the
Corporation which are beneficially owned by the stockholder. In addition, in the
case of a

                                       2
<PAGE>

stockholder proposal, the notice shall set forth the reasons for conducting such
proposed business at the meeting and any material interest of the stockholder in
such business. In the case of a nomination of any person for election as a
Director, the notice shall set forth: (i) the name and address of any person to
be nominated; (ii) a description of all arrangements or understandings between
the stockholder and each nominee and any other person or persons (naming such
person or persons) pursuant to which the nomination or nominations are to be
made by the stockholder; (iii) such other information regarding such nominee
proposed by such stockholder as would be required to be included in a proxy
statement filed pursuant to Regulation 14A under the Securities Exchange Act of
1934, as amended; and (iv) the consent of each nominee to serve as a Director of
the Corporation if so elected. The presiding officer of the annual or special
meeting shall, if the facts warrant, refuse to acknowledge a proposal or
nomination not made in compliance with the foregoing procedure, and any such
proposal or nomination not properly brought before the meeting shall not be
considered.

      2.6 CONDUCT OF BUSINESS

      Meetings of stockholders shall be presided over by the Chairman of the
Board, if any, or in his or her absence by the Chief Executive Officer, or in
his or her absence the President, or in his or her absence by a Vice President,
or in the absence of the foregoing persons by a chairman designated by the Board
of Directors, or in the absence of such designation by a chairman chosen at the
meeting. The Secretary shall act as secretary of the meeting, but in his or her
absence the chairman of the meeting may appoint any person to act as secretary
of the meeting. The chairman of any meeting of stockholders shall determine the
order of business and the procedures at the meeting, including such matters as
the regulation of the manner of voting and conduct of business.

      2.7 QUORUM

      The holders of a majority of the stock issued and outstanding and entitled
to vote thereat, present in person or represented by proxy, shall constitute a
quorum at all meetings of the stockholders for the transaction of business
except as otherwise provided by statute or by the Certificate. If, however, such
quorum is not present or represented at any meeting of the stockholders, then
either (i) the chairman of the meeting, or (ii) the stockholders entitled to
vote thereat, present in person or represented by proxy, shall have power to
adjourn the meeting from time to time, without notice other than announcement at
the meeting, until a quorum is present or represented. At such adjourned meeting
at which a quorum is present or represented, any business may be transacted that
might have been transacted at the meeting as originally noticed. If the
adjournment is for more than thirty days, or if after the adjournment a new
record date is fixed for the adjourned meeting, a notice of the adjourned
meeting shall be given to each stockholder of record entitled to vote at the
meeting.

      When a quorum is present or represented at any meeting, the vote of the
holders of a majority of the stock having voting power present in person or
represented by proxy shall decide any question brought before such meeting,
unless the question is one upon which, by express provisions of the General
Corporation Law of Delaware or of the Certificate, a different vote is required,
in which case such express provision shall govern and control the decision of
the question.

                                       3
<PAGE>

      2.8 VOTING

      The stockholders entitled to vote at any meeting of stockholders shall be
determined in accordance with the provisions of Sections 2.12 and 2.14 of these
Bylaws, subject to the provisions of Sections 217 and 218 of the General
Corporation Law of Delaware (relating to voting rights of fiduciaries, pledgors
and joint owners of stock and to voting trusts and other voting agreements).
Except as may be otherwise provided in the Certificate, each stockholder shall
be entitled to one vote for each share of capital stock held by such
stockholder.

      2.9 ADVISORY STOCKHOLDER VOTES

      In order for the stockholders to adopt or approve any precatory proposal
submitted to them for the purpose of requesting the Board of Directors to take
certain actions, a majority of the outstanding stock of the Corporation entitled
to vote thereon must be voted in favor of the proposal.

      2.10 VOTING PROCEDURES AND INSPECTIONS OF ELECTIONS

            (a) The Corporation shall, in advance of any meeting of
      stockholders, appoint one or more inspectors to act at the meeting and
      make a written report thereof. The Corporation may designate one or more
      persons as alternate inspectors to replace any inspector who fails to act.
      If no inspector or alternate is able to act at a meeting of stockholders,
      the person presiding at the meeting shall appoint one or more inspectors
      to act at the meeting. Each inspector, before entering upon the discharge
      of his duties, shall take and sign an oath faithfully to execute the
      duties of inspector with strict impartiality and according to the best of
      his ability.

            (b) The inspectors shall (i) ascertain the number of shares
      outstanding and the voting power of each, (ii) determine the shares
      represented at a meeting and the validity of proxies and ballots, (iii)
      count all votes and ballots, (iv) determine and retain for a reasonable
      period a record of the disposition of any challenges made to any
      determination by the inspectors, and (v) certify their determination of
      the number of shares represented at the meeting, and their count of all
      votes and ballots. The inspectors may appoint or retain other persons or
      entities to assist the inspectors in the performance of the duties of the
      inspectors.

            (c) The date and time of the opening and the closing of the polls
      for each matter upon which the stockholders will vote at a meeting shall
      be announced at the meeting. No ballot, proxies or votes, nor any
      revocations thereof or changes thereto, shall be accepted by the
      inspectors after the closing of the polls unless the Delaware Court of
      Chancery upon application by a stockholder shall determine otherwise.

            (d) In determining the validity and counting of proxies and ballots,
      the inspectors shall be limited to an examination of the proxies, any
      envelopes submitted with those proxies, any information provided in
      accordance with Section 212(c)(2) of the General Corporation Law of
      Delaware, ballots and the regular books and records of the Corporation,
      except that the inspectors may consider other reliable information for the
      limited purpose of reconciling proxies and ballots submitted by or on
      behalf of banks,

                                       4
<PAGE>

      brokers, their nominees or similar persons which represent more votes than
      the holder of a proxy is authorized by the record owner to cast or more
      votes than the stockholder holds of record. If the inspectors consider
      other reliable information for the limited purpose permitted in this
      Section 2.10, the inspectors at the time they make their certification
      pursuant to subsection (b)(v) of this Section 2.10 shall specify the
      precise information considered by them including the person or persons
      from whom they obtained the information, when the information was
      obtained, the means by which the information was obtained and the basis
      for the inspectors' belief that such information is accurate and reliable.

      2.11 STOCKHOLDER ACTION BY WRITTEN CONSENT WITHOUT A MEETING

      Any action required or permitted to be taken by the stockholders must be
effected at a duly called annual or special meeting of such stockholders and may
not be effected by a consent in writing by any such stockholders.

      2.12 RECORD DATE FOR STOCKHOLDER NOTICE; VOTING

      In order that the Corporation may determine the stockholders entitled to
notice of or to vote at any meeting of stockholders or any adjournment thereof,
or entitled to receive payment of any dividend or other distribution or
allotment of any rights, or entitled to exercise any rights in respect of any
change, conversion or exchange of stock or for the purpose of any other lawful
action, the Board of Directors may fix, in advance, a record date, which shall
not be more than 60 nor less than 10 days before the date of such meeting, nor
more than 60 days prior to any other action.

      If the Board of Directors does not so fix a record date, the fixing of
such record date shall be governed by the provisions of Section 213 of the
General Corporation Law of Delaware.

      A determination of stockholders of record entitled to notice of or to vote
at a meeting of stockholders shall apply to any adjournment of the meeting;
provided, however, that the Board of Directors may fix a new record date for the
adjourned meeting.

      2.13 PROXIES

      Each stockholder entitled to vote at a meeting of stockholders or to
express consent or dissent to corporate action in writing without a meeting may
authorize another person or persons to act for him or her by a written proxy,
signed by the stockholder and filed with the Secretary, but no such proxy shall
be voted or acted upon after 3 years from its date, unless the proxy expressly
provides for a longer period. A proxy shall be deemed signed if the
stockholder's name is placed on the proxy (whether by manual signature,
typewriting, telegraphic transmission or otherwise) by the stockholder or the
stockholder's attorney-in-fact. The revocability of a proxy that states on its
face that it is irrevocable shall be governed by the provisions of Section
212(e) of the General Corporation Law of Delaware.

      2.14 LIST OF STOCKHOLDERS ENTITLED TO VOTE

                                       5
<PAGE>

      The officer who has charge of the stock ledger of a Corporation shall
prepare and make, at least 10 days before every meeting of stockholders, a
complete list of the stockholders entitled to vote at the meeting, arranged in
alphabetical order, and showing the address of each stockholder and the number
of shares registered in the name of each stockholder. Such list shall be open to
the examination of any stockholder, for any purpose germane to the meeting,
during ordinary business hours, for a period of at least 10 days prior to the
meeting, either at a place within the city where the meeting is to be held,
which place shall be specified in the notice of the meeting, or, if not so
specified, at the place where the meeting is to be held. The stock ledger shall
also be produced and kept at the time and place of the meeting during the whole
time thereof, and may be inspected by any stockholder who is present. The stock
ledger shall be the only evidence as to who are the stockholders entitled to
examine the stock ledger, the list of stockholders or the books of the
Corporation, or to vote in person or by proxy at any meeting of stockholders and
of the number of shares held by each such stockholder.

                                   ARTICLE III

                                    DIRECTORS

      3.1 POWERS

      Subject to the provisions of the General Corporation Law of Delaware and
any limitations in the Certificate or these Bylaws relating to action required
to be approved by the stockholders or by the outstanding shares, the business
and affairs of the Corporation shall be managed and all corporate powers shall
be exercised by or under the direction of the Board of Directors.

      3.2 NUMBER

      The authorized number of Directors of the Corporation shall be set from
time to time in accordance with a resolution or resolutions adopted by the Board
of Directors.

      3.3 CLASSES OF DIRECTORS

      The Directors shall be divided into three classes designated as Class I,
Class II and Class III, respectively. Directors shall be initially assigned to
each class in accordance with a resolution or resolutions adopted by the Board
of Directors. At the first annual meeting of stockholders following the date
hereof, the term of office of the Class I Directors shall expire and Class I
Directors shall be elected for a full term of three years. At the second annual
meeting of stockholders following the date hereof, the term of office of the
Class II Directors shall expire and Class II Directors shall be elected for a
full term of three years. At the third annual meeting of stockholders following
the date hereof, the term of office of the Class III Directors shall expire and
Class III Directors shall be elected for a full term of three years. At each
succeeding annual meeting of stockholders, Directors shall be elected for a full
term of three years to succeed the Directors of the class whose terms expire at
such annual meeting.

      Notwithstanding the foregoing provisions of this Article, each Director
shall serve until his successor is duly elected and qualified or until his
earlier death, resignation or removal. No

                                       6
<PAGE>

decrease in the number of Directors constituting the Board of Directors shall
shorten the term of any incumbent Director.

      3.4 RESIGNATION AND VACANCIES

      Any Director may resign at any time by giving written notice to the Board
of Directors, the Chairman of the Board, the Chief Executive Officer or the
Secretary. Such resignation shall take effect at the time specified in the
written notice or, if the time is not specified, upon receipt of the notice;
and, unless otherwise specified in the written notice, the acceptance of such
resignation shall not be necessary to make it effective.

      Except as otherwise required by law, vacancies on the Board of Directors
will be filled in accordance with the Certificate.

      3.5 PLACE OF MEETINGS; MEETINGS BY TELEPHONE

      The Board of Directors of the Corporation may hold meetings, both regular
and special, either within or outside the State of Delaware. Unless otherwise
restricted by the Certificate or these Bylaws, members of the Board of
Directors, or any committee designated by the Board of Directors, may
participate in a meeting of the Board of Directors, or any committee, by means
of conference telephone or similar communications equipment by means of which
all persons participating in the meeting can hear each other, and such
participation in a meeting shall constitute presence in person at the meeting.

      3.6 MEETINGS

      Meetings of the Board of Directors may be called at any time by the
Chairman of the Board, the Chief Executive Officer, the President, the Chief
Financial Officer, the Secretary or any two Directors.

      Notice of the time and place of meetings shall be delivered personally or
by telephone to each Director or sent by first-class mail, electronic mail,
facsimile or telegram, charges prepaid, addressed to each Director at the
Director's address as it is shown on the records of the Corporation. If the
notice is mailed, it shall be deposited in the United States mail at least four
days before the time of the holding of the meeting. If the notice is delivered
personally or by telephone, electronic mail, facsimile or telegram, it shall be
delivered at least 48 hours before the time of the holding of the meeting. Any
oral notice given personally or by telephone may be communicated either to the
Director or to a person at the office of the Director who the person giving the
notice has reason to believe will promptly communicate it to the Director. The
notice need not specify the purpose or, if the meeting is to be held at the
principal executive office of the Corporation, the place of the meeting.

      3.7 QUORUM

      A majority of the total number of Directors then in office shall be
present in person at any meeting of the Board of Directors in order to
constitute a quorum for the transaction of business at such meeting, and the
vote of a majority of those Directors present at any such meeting at which a
quorum is present shall be necessary for the passage of any resolution or act of
the

                                       7
<PAGE>

Board of Directors, except as otherwise expressly required by law, the
Certificate or these Bylaws. A Director who is in attendance at a meeting of the
Board of Directors but who abstains from the vote on any matter by announcing
his abstention to the person acting as secretary of the meeting and not voting
on such matter shall not be deemed present at such meeting for purposes of the
preceding sentence with respect to such vote, but shall be deemed present at
such meeting for all other purposes.

      3.8 WAIVER OF NOTICE

      Whenever notice is required to be given under any provision of the General
Corporation Law of Delaware or of the Certificate or these Bylaws, a written
waiver thereof, signed by the person entitled to notice, whether before or after
the time stated therein, shall be deemed equivalent to notice. Attendance of a
person at a meeting shall constitute a waiver of notice of such meeting, except
when the person attends a meeting for the express purpose of objecting, at the
beginning of the meeting, to the transaction of any business because the meeting
is not lawfully called or convened. Neither the business to be transacted at,
nor the purpose of, any regular or special meeting of the Directors, or members
of a committee of Directors, need be specified in any written waiver of notice
unless so required by the Certificate or these Bylaws.

      3.9 ADJOURNED MEETING; NOTICE

      If a quorum is not present at any meeting of the Board of Directors, then
the Directors present thereat may adjourn the meeting from time to time, without
notice other than announcement at the meeting, until a quorum is present.

      3.10 CONDUCT OF BUSINESS

      Meetings of the Board of Directors shall be presided over by the Chairman
of the Board, if any, or in his or her absence by the Chief Executive Officer
(if he or she is a Director), or in their absence by a chairman chosen at the
meeting. The Secretary shall act as secretary of the meeting, but in his or her
absence the chairman of the meeting may appoint any person to act as secretary
of the meeting. The chairman of any meeting shall determine the order of
business and the procedures at the meeting.

      3.11 ACTION BY MEANS OF CONFERENCE TELEPHONE OR SIMILAR COMMUNICATIONS
EQUIPMENT

      Any one or more members of the Board of Directors or any committee
thereof, may participate in a meeting of such Board of Directors or committee by
means of conference telephone or similar communications equipment by means of
which all persons participating in the meeting can hear each other, and
participation in a meeting by such means shall constitute presence in person at
such meeting.

      3.12 BOARD ACTION BY WRITTEN CONSENT WITHOUT A MEETING

      Unless otherwise restricted by the Certificate or these Bylaws, any action
required or permitted to be taken at any meeting of the Board of Directors, or
of any committee thereof, may be taken without a meeting if all members of the
Board of Directors or committee, as the case

                                       8
<PAGE>

may be, consent thereto in writing and the writing or writings are filed with
the minutes of proceedings of the Board of Directors or committee.

      3.13 FEES AND COMPENSATION OF DIRECTORS

      Unless otherwise restricted by the Certificate or these Bylaws, the Board
of Directors shall have the authority to fix the compensation of Directors. The
Directors may be paid their expenses, if any, of attendance at each meeting of
the Board of Directors and may be paid a fixed sum for attendance at each
meeting of the Board of Directors or a stated salary as Director. No such
payment shall preclude any Director from serving the Corporation in any other
capacity and receiving compensation therefor. Members of special or standing
committees may be allowed like compensation for attending committee meetings.

      3.14 REMOVAL OF DIRECTORS

      Except as otherwise required by law, Directors may be removed only in
accordance with the provisions of the Certificate.

                                   ARTICLE IV

                                   COMMITTEES

      4.1 COMMITTEES OF DIRECTORS

      The Board of Directors may, by resolution passed by a majority of the
whole Board of Directors, designate one or more committees, with each committee
to consist of one or more of the Directors of the Corporation. The Board of
Directors may designate one or more Directors as alternate members of any
committee, who may replace any absent or disqualified member at any meeting of
the committee. In the absence or disqualification of a member of a committee,
the member or members thereof present at any meeting and not disqualified from
voting, whether or not constituting a quorum, may unanimously appoint another
member of the Board of Directors to act at the meeting in the place of any such
absent or disqualified member. Except as expressly limited by law, the
Certificate or these Bylaws, any such committee, to the extent provided in the
resolution of the Board of Directors or in these Bylaws, shall have and may
exercise all the powers and authority of the Board of Directors in the
management of the business and affairs of the Corporation.

      4.2 COMMITTEE MINUTES

      Each committee shall keep regular minutes of its meetings and report the
same to the Board of Directors when required.

      4.3 MEETINGS AND ACTION OF COMMITTEES

      Meetings and actions of committees shall be governed by, and held and
taken in accordance with, the provisions of Article III of these Bylaws, Section
3.5 (place of meetings and meetings by telephone), Section 3.6 (meetings),
Section 3.7 (quorum), Section 3.8 (waiver of notice), Section 3.9 (adjournment
and notice of adjournment), Section 3.10 (conduct of

                                       9
<PAGE>

business), Section 3.11 (action by means of conference telephone or similar
communications equipment) and 3.12 (action without a meeting), with such changes
in the context of those Bylaws as are necessary to substitute the committee and
its members for the Board of Directors and its members; provided, however, that
the time of regular meetings of committees may also be called by resolution of
the Board of Directors and that notice of meetings of committees shall also be
given to all alternate members, who shall, except as required by law, have the
right to attend all meetings of the committee. The Board of Directors may adopt
rules for the government of any committee not inconsistent with the provisions
of these Bylaws and applicable law.

                                    ARTICLE V

                                    OFFICERS

      5.1 OFFICERS

      The officers of the Corporation shall be a Chief Executive Officer, one or
more Vice Presidents, a Secretary, a Chief Financial Officer and a Controller.
The Corporation may also have, at the discretion of the Board of Directors, a
Chairman of the Board, a President, a Chief Operating Officer, one or more
Executive, Senior or Assistant Vice Presidents, Assistant Secretaries and any
such other officers as may be appointed in accordance with the provisions of
Section 5.2 of these Bylaws. Any number of offices may be held by the same
person.

      5.2 APPOINTMENT OF OFFICERS

      Except as otherwise provided in this Section 5.2, the officers of the
Corporation shall be appointed by the Board of Directors, subject to the rights,
if any, of an officer under any contract of employment. The Board of Directors
may appoint, or empower an officer to appoint, such officers and agents of the
business as the Corporation may require (whether or not such officer or agent is
described in this Article V), each of whom shall hold office for such period,
have such authority, and perform such duties as are provided in these Bylaws or
as the Board of Directors may from time to time determine. Any vacancy occurring
in any office of the Corporation shall be filled by the Board of Directors or
may be filled by the officer, if any, who appointed such officer.

      5.3 REMOVAL AND RESIGNATION OF OFFICERS

      Subject to the rights, if any, of an officer under any contract of
employment, any officer may be removed, either with or without cause, by an
affirmative vote of the majority of the Board of Directors at any regular or
special meeting of the Board of Directors or, except in the case of an officer
chosen by the Board of Directors, by any officer upon whom such power of removal
may be conferred by the Board of Directors or, in the case of an officer
appointed by another officer, by such other officer.

      Any officer may resign at any time by giving written notice to the
Corporation. Any resignation shall take effect at the date of the receipt of
that notice or at any later time specified in that notice; and, unless otherwise
specified in that notice, the acceptance of the resignation shall not be
necessary to make it effective. Any resignation is without prejudice to the
rights, if any, of the Corporation under any contract to which the officer is a
party.

                                       10
<PAGE>

      5.4 CHAIRMAN OF THE BOARD

      The Chairman of the Board, if such an officer be elected, shall, if
present, preside at meetings of the Board of Directors and exercise and perform
such other powers and duties as may from time to time be assigned to him or her
by the Board of Directors or as may be prescribed by these Bylaws.

      5.5 CHIEF EXECUTIVE OFFICER

      The Chief Executive Officer of the Corporation shall, subject to the
control of the Board of Directors, have general supervision, direction and
control of the business and the officers of the Corporation. He or she, if a
Director, shall preside at all meetings of the stockholders and, in the absence
or nonexistence of a Chairman of the Board at all meetings of the Board of
Directors. He or she shall have the general powers and duties of management
usually vested in the chief executive officer of a corporation, including
general supervision, direction and control of the business and supervision of
other officers of the Corporation, and shall have such other powers and duties
as may be prescribed by the Board of Directors or these Bylaws.

      The Chief Executive Officer shall, without limitation, have the authority
to execute bonds, mortgages and other contracts requiring a seal, under the seal
of the Corporation, except where required or permitted by law to be otherwise
signed and executed and except where the signing and execution thereof shall be
expressly delegated by the Board of Directors to some other officer or agent of
the Corporation.

      5.6 PRESIDENT

      Subject to such supervisory powers as may be given by these Bylaws or the
Board of Directors to the Chairman of the Board or the Chief Executive Officer,
if there be such officers, the President shall have general supervision,
direction and control of the business and supervision of other officers of the
Corporation, and shall have such other powers and duties as may be prescribed by
the Board of Directors or these Bylaws. In the event a Chief Executive Officer
shall not be appointed, the President shall have the duties of such office.

      5.7 VICE PRESIDENT

      In the absence or disability of the President, the Vice Presidents, if
any, in order of their rank as fixed by the Board of Directors or, if not
ranked, a Vice President designated by the Board of Directors, shall perform all
the duties of the President and when so acting shall have all the powers of, and
be subject to all the restrictions upon, the President. The Vice Presidents
shall have such other powers and perform such other duties as from time to time
may be prescribed for them respectively by the Board of Directors, these Bylaws,
the Chief Executive Officer, the President or the Chairman of the Board.

                                       11
<PAGE>

      5.8 SECRETARY

      The Secretary shall keep or cause to be kept, at the principal executive
office of the Corporation or such other place as the Board of Directors may
direct, a book of minutes of all meetings and actions of Directors, committees
of Directors, and stockholders. The minutes shall show the time and place of
each meeting, whether regular or special (and, if special, how authorized and
the notice given), the names of those present at Directors' meetings or
committee meetings, the number of shares present or represented at stockholders'
meetings, and the proceedings thereof. The Secretary shall keep, or cause to be
kept, at the principal executive office of the Corporation or at the office of
the Corporation's transfer agent or registrar, as determined by resolution of
the Board of Directors, a share register, or a duplicate share register, showing
the names of all stockholders and their addresses, the number and classes of
shares held by each, the number and date of certificates evidencing such shares,
and the number and date of cancellation of every certificate surrendered for
cancellation. The Secretary shall give, or cause to be given, notice of all
meetings of the stockholders and of the Board of Directors required to be given
by law or by these Bylaws. He or she shall keep the seal of the Corporation, if
one be adopted, in safe custody and shall have such other powers and perform
such other duties as may be prescribed by the Board of Directors or by these
Bylaws.

      5.9 CHIEF FINANCIAL OFFICER

      The Chief Financial Officer shall deposit all money and other valuables in
the name and to the credit of the Corporation with such depositaries as may be
designated by the Board of Directors. He or she shall disburse the funds of the
Corporation as may be ordered by the Board of Directors, shall render to the
Chief Executive Officer and Directors, whenever they request it, an account of
all of his or her transactions as treasurer and of the financial condition of
the Corporation, and shall have such other powers and perform such other duties
as may be prescribed by the Board of Directors or these Bylaws.

      5.10 ASSISTANT SECRETARY

      The Assistant Secretary, or, if there is more than one, the Assistant
Secretaries in the order determined by the stockholders or Board of Directors
(or if there be no such determination, then in the order of their election)
shall, in the absence of the Secretary or in the event of his or her inability
or refusal to act, perform the duties and exercise the powers of the Secretary
and shall perform such other duties and have such other powers as the Board of
Directors or the stockholders may from time to time prescribe.

      5.11 CONTROLLER

      The Controller shall keep and maintain, or cause to be kept and
maintained, adequate and correct books and records of accounts of the properties
and business transactions of the Corporation, including accounts of its assets,
liabilities, receipts, disbursements, gains, losses, capital, retained earnings
and shares. The books of account shall at all reasonable times be open to
inspection by any Director. He or she shall render to the Chief Executive
Officer, the President, the Chief Financial Officer and the Directors, whenever
they request it, such reports as

                                       12
<PAGE>

any of them may require, and shall have such other powers and perform such other
duties as may be prescribed by the Board of Directors or these Bylaws.

      5.12 AUTHORITY AND DUTIES OF OFFICERS

      In addition to the foregoing authority and duties, all officers of the
Corporation shall have such authority and perform such duties in the management
of the business of the Corporation as may be designated from time to time by the
Board of Directors or the stockholders.

                                   ARTICLE VI

                                    INDEMNITY

      6.1 THIRD PARTY ACTIONS

      The Corporation shall 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, whether civil, criminal, administrative or investigative
(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, employee or agent of the
Corporation, or is or was serving at the request of the Corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by him or her in connection with such action, suit or proceeding if he
or she acted in good faith and in a manner he or she reasonably believed to be
in 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 or her
conduct was unlawful. The termination of any action, suit or proceeding by
judgment, order, settlement, conviction, or upon a plea of nolo contendere or
its equivalent, shall not, of itself, create a presumption that the person did
not act in good faith and in a manner which he reasonably believed to be in or
not opposed to the best interests of the Corporation, and, with respect to any
criminal action or proceeding, had reasonable cause to believe that his conduct
was unlawful.

      6.2 ACTIONS BY OR IN THE RIGHT OF THE CORPORATION

      The Corporation shall indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action or
suit by or in the right of the Corporation to procure a judgment in its favor by
reason of the fact that he or she is or was a Director, officer, employee or
agent of Corporation, or is or was serving at the request of the Corporation as
a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise against expenses (including attorneys'
fees) actually and reasonably incurred by him or her in connection with the
defense or settlement of such action or suit if he or she acted in good faith
and in manner he or she reasonably believed to be in or not opposed to the best
interests of the Corporation and except that no indemnification shall be made in
respect of any claim, issue or matter as to which such person shall have been
adjudged to be liable to the Corporation unless and only to the extent that the
Delaware Court of Chancery or the court in which such action or suit was brought
shall determine upon application that, despite the adjudication of liability but
in view of all the circumstances of the case, such person is fairly

                                       13
<PAGE>

and reasonably entitled to indemnity for such expenses which the Delaware Court
of Chancery or such other court shall deem proper.

      6.3 SUCCESSFUL DEFENSE

      To the extent that a present or former Director or officer of the
Corporation has been successful on the merits or otherwise in defense of any
action, suit or proceeding referred to in Sections 6.1 and 6.2, or in defense of
any claim, issue or matter therein, he or she shall be indemnified against
expenses (including attorneys' fees) actually and reasonably incurred by him or
her in connection therewith.

      6.4 DETERMINATION OF CONDUCT

      Any indemnification under Sections 6.1 and 6.2 (unless ordered by a court)
shall be made by the Corporation only as authorized in the specific case upon a
determination that the indemnification of the present or former Director,
officer, employee or agent is proper in the circumstances because he or she has
met the applicable standard of conduct set forth in Sections 6.1 and 6.2. Such
determination shall be made, with respect to a person who is a Director or
officer at the time of such determination, (1) by a majority vote of the
Directors who are not parties to such action, suit or proceeding, even though
less than a quorum, or (2) by a committee of such Directors designated by
majority vote of such Directors, even though less than a quorum or (3) if there
are no such Directors, of if such Directors so direct, by independent legal
counsel in a written opinion, or (4) by the stockholders.

      6.5 PAYMENT OF EXPENSES IN ADVANCE

      Expenses (including attorney's fees) incurred by an officer, Director,
employee, agent, former Director or former officer of the Corporation in
defending a civil, criminal, administrative or investigative action, suit or
proceeding shall be paid by the Corporation in advance of the final disposition
of such action, suit or proceeding upon receipt of an undertaking by or on
behalf of the Director or officer to repay such amount if it shall ultimately be
determined that he or she is not entitled to be indemnified by the Corporation
as authorized in this Article VI.

      6.6 INDEMNITY NOT EXCLUSIVE

      The indemnification and advancement of expenses provided by, or granted
pursuant to, the other sections of this Article VI shall not be deemed exclusive
of any other rights to which those seeking indemnification or advancement of
expenses may be entitled under any by-law, agreement, vote of stockholders or
disinterested Directors or otherwise, both as to action in his or her official
capacity and as to action in another capacity while holding such office.

      6.7 INSURANCE INDEMNIFICATION

      The Corporation shall have the power to purchase and maintain insurance on
behalf of any person who is or was a Director, officer, employee or agent of the
Corporation, or is or was serving at the request of the Corporation, as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise against any liability asserted against him or
her and incurred by him or her in any such capacity, or arising out of his or
her

                                       14
<PAGE>

status as such, whether or not the Corporation would have the power to indemnify
him or her against such liability under the provisions of this Article VI.

      6.8 THE CORPORATION

      For purposes of this Article VI, references to "the Corporation" shall
include, in addition to the resulting Corporation, any constituent corporation
(including any constituent of a constituent) absorbed in a consolidation or
merger which, if its separate existence had continued, would have had power and
authority to indemnify its directors, officers, and employees or agents, so that
any person who is or was a director, officer, employee or agent of such
constituent corporation, or is or was serving at the request of such constituent
corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, shall stand in the same
position under the provisions of this Article VI (including, without limitation
the provisions of Section 6.4) with respect to the resulting or surviving
corporation as he would have with respect to such constituent corporation if its
separate existence had continued.

      6.9 EMPLOYEE BENEFIT PLANS; FINES; SERVING AT THE REQUEST OF THE
CORPORATION

      For purposes of this Article VI, references to "other enterprises" shall
include employee benefit plans; references to "fines" shall include any excise
taxes assessed on a person with respect to an employee benefit plan; and
references to "serving at the request of the Corporation" shall include any
service as a Director, officer, employee or agent of the Corporation that
imposes duties on, or involves services by, such Director, officer, employee, or
agent with respect to an employee benefit plan, its participants, or
beneficiaries; and a person who acted in good faith and in a manner he or she
reasonably believed to be in the interest of the participants and beneficiaries
of an employee benefit plan shall be deemed to have acted in a manner "not
opposed to the best interests of the Corporation" as referred to in this Article
VI.

      6.10 CONTINUATION OF INDEMNIFICATION AND ADVANCEMENT OF EXPENSES

      The indemnification and advance of expenses provided by, or granted
pursuant to, this Article VI shall, unless otherwise provided when authorized or
ratified, continue as to a person who has ceased to be a Director, officer,
employee or agent and shall inure to the benefit of the heirs, executors and
administrators of such a person.

      6.11 SEVERABILITY

      If any provision or provisions of this Article VI shall be held to be
invalid, illegal or unenforceable for any reason whatsoever: (i) the validity,
legality and enforceability of the remaining provisions of this Article VI
(including, without limitation, each portion of any Section of this Article VI
containing any such provision held to be invalid, illegal or unenforceable, that
is not itself held to be invalid, illegal or unenforceable) shall not in any way
be affected or impaired thereby; and (ii) to the fullest extent possible, the
provisions of this Article VI (including, without limitation, each such portion
of any Section of this Article VI containing any such provision held to be
invalid, illegal or unenforceable) shall be construed so

                                       15
<PAGE>

as to give effect to the intent manifested by the provision or provisions held
invalid, illegal or unenforceable.

                                   ARTICLE VII

                               RECORDS AND REPORTS

      7.1 MAINTENANCE AND INSPECTION OF RECORDS

      The Corporation shall, either at its principal executive office or at such
place or places as designated by the Board of Directors, keep a record of its
stockholders listing their names and addresses and the number and class of
shares held by each stockholder, a copy of these Bylaws as amended to date,
accounting books, and other records.

      Any stockholder of record, in person or by attorney or other agent, shall,
upon written demand under oath stating the purpose thereof, have the right
during the usual hours for business to inspect for any proper purpose the
Corporation's stock ledger, a list of its stockholders, and its other books and
records and to make copies or extracts therefrom. A proper purpose shall mean a
purpose reasonably related to such person's interest as a stockholder. In every
instance where an attorney or other agent is the person who seeks the right to
inspection, the demand under oath shall be accompanied by a power of attorney or
such other writing that authorizes the attorney or other agent to so act on
behalf of the stockholder. The demand under oath shall be directed to the
Corporation at its registered office in Delaware or at its principal place of
business.

      7.2 INSPECTION BY DIRECTORS

      Any Director shall have the right to examine the Corporation's stock
ledger, a list of its stockholders and its other books and records for a purpose
reasonably related to his or her position as a Director. The Court of Chancery
is hereby vested with the exclusive jurisdiction to determine whether a Director
is entitled to the inspection sought. The Court may summarily order the
Corporation to permit the Director to inspect any and all books and records, the
stock ledger, and the stock list and to make copies or extracts therefrom. The
Court may, in its discretion, prescribe any limitations or conditions with
reference to the inspection, or award such other and further relief as the Court
may deem just and proper.

      7.3 REPRESENTATION OF SHARES OF OTHER CORPORATIONS

      The Chairman of the Board, the Chief Executive Officer, the President, any
Vice President, the Chief Financial Officer, the Secretary or an Assistant
Secretary of this Corporation, or any other person authorized by the Board of
Directors or the Chief Executive Officer, the President or a Vice President, is
authorized to vote, represent, and exercise on behalf of this Corporation all
rights incident to any and all shares of any other corporation or corporations
standing in the name of this Corporation. The authority granted herein may be
exercised either by such person directly or by any other person authorized to do
so by proxy or power of attorney duly executed by such person having the
authority.

                                       16
<PAGE>

                                  ARTICLE VIII

                                 GENERAL MATTERS

      8.1 CHECKS

      From time to time, the Board of Directors shall determine by resolution
which person or persons may sign or endorse all checks, drafts, other orders for
payment of money, notes or other evidences of indebtedness that are issued in
the name of or payable to the Corporation, and only the persons so authorized
shall sign or endorse those instruments.

      8.2 EXECUTION OF CORPORATE CONTRACTS AND INSTRUMENTS

      The Board of Directors, except as otherwise provided in these Bylaws, may
authorize any officer or officers, or agent or agents, to enter into any
contract or execute any instrument in the name of and on behalf of the
Corporation; such authority may be general or confined to specific instances.
Unless so authorized or ratified by the Board of Directors or within the agency
power of an officer, no officer, agent or employee shall have any power or
authority to bind the Corporation by any contract or engagement or to pledge its
credit or to render it liable for any purpose or for any amount.

      8.3 STOCK CERTIFICATES; PARTLY PAID SHARES

      The shares of a corporation shall be represented by certificates, provided
that the Board of Directors of the Corporation may provide by resolution or
resolutions that some or all of any or all classes or series of its stock shall
be uncertificated shares. Any such resolution shall not apply to shares
represented by a certificate until such certificate is surrendered to the
Corporation. Notwithstanding the adoption of such a resolution by the Board of
Directors, every holder of stock represented by certificates and upon request
every holder of uncertificated shares shall be entitled to have a certificate
signed by, or in the name of the Corporation by the Chairman or a vice-chairman
of the Board of Directors, or the Chief Executive Officer, the President or any
Vice President, and by the Chief Financial Officer, the Secretary or any
Assistant Secretary representing the number of shares registered in certificate
form. Any or all of the signatures on the certificate may be a facsimile. In
case any officer, transfer agent or registrar who has signed or whose facsimile
signature has been placed upon a certificate has ceased to be such officer,
transfer agent or registrar before such certificate is issued, it may be issued
by the Corporation with the same effect as if he were such officer, transfer
agent or registrar at the date of issue.

      The Corporation may issue the whole or any part of its shares as partly
paid and subject to call for the remainder of the consideration to be paid
therefor. Upon the face or back of each stock certificate issued to represent
any such partly paid shares or upon the books and records of the Corporation in
the case of uncertificated partly paid shares, the total amount of the
consideration to be paid therefor and the amount paid thereon shall be stated.
Upon the declaration of any dividend on fully paid shares, the Corporation shall
declare a dividend upon partly paid shares of the same class, but only upon the
basis of the percentage of the consideration actually paid thereon.

                                       17
<PAGE>

      8.4 SPECIAL DESIGNATION ON CERTIFICATES

      If the Corporation is authorized to issue more than one class of stock or
more than one series of any class, then the powers, the designations, the
preferences, and the relative, participating, optional or other special rights
of each class of stock or series thereof and the qualifications, limitations or
restrictions of such preferences and or rights shall be set forth in full or
summarized on the face or back of the certificate that the Corporation shall
issue to represent such class or series of stock; provided, however, that,
except as otherwise provided in Section 202 of the General Corporation Law of
Delaware, in lieu of the foregoing requirements there may be set forth on the
face or back of the certificate that the Corporation shall issue to represent
such class or series of stock a statement that the Corporation will furnish
without charge to each stockholder who so requests the powers, the designations,
the preferences, and the relative, participating, optional or other special
rights of each class of stock or series thereof and the qualifications,
limitations or restrictions of such preferences and or rights.

      8.5 LOST CERTIFICATES

      Except as provided in this Section 8.5, no new certificates for shares
shall be issued to replace a previously issued certificate unless the latter is
surrendered to the Corporation and canceled at the same time. The Corporation
may issue a new certificate of stock or uncertificated shares in the place of
any certificate theretofore issued by it, alleged to have been lost, stolen or
destroyed, and the Corporation may require the owner of the lost, stolen or
destroyed certificate, or his or her legal representative, to give the
Corporation a bond sufficient to indemnify it against any claim that may be made
against it on account of the alleged loss, theft or destruction of any such
certificate or the issuance of such new certificate or uncertificated shares.

      8.6 CONSTRUCTION; DEFINITIONS

      Unless the context requires otherwise, the general provisions, rules of
construction, and definitions in the General Corporation Law of Delaware shall
govern the construction of these Bylaws. Without limiting the generality of this
provision, the singular number includes the plural, the plural number includes
the singular, and the term "person" includes both a Corporation and a natural
person.

      8.7 DIVIDENDS

      The Directors of the Corporation, subject to any restrictions contained in
the Certificate and these Bylaws, may declare and pay dividends upon the shares
of its capital stock pursuant to the General Corporation Law of Delaware.
Dividends may be paid in cash, in property, or in shares of the Corporation's
capital stock.

      The Directors of the Corporation may set apart out of any of the funds of
the Corporation available for dividends a reserve or reserves for any proper
purpose and may abolish any such reserve. Such purposes shall include but not be
limited to equalizing dividends, repairing or maintaining any property of the
Corporation, and meeting contingencies.

      8.8 FISCAL YEAR

                                       18
<PAGE>

      The fiscal year of the Corporation shall be fixed by resolution of the
Board of Directors and may be changed by the Board of Directors.

      8.9 SEAL

      The Corporation may adopt a corporate seal, which may be altered at
pleasure, and may use the same by causing it or a facsimile thereof to be
impressed or affixed or in any other manner reproduced.

      8.10 TRANSFER OF STOCK

      Upon surrender to the Corporation or the transfer agent of the Corporation
of a certificate for shares duly endorsed or accompanied by proper evidence of
succession, assignation or authority to transfer, it shall be the duty of the
Corporation to issue a new certificate to the person entitled thereto, cancel
the old certificate, and record the transaction in its books.

      8.11 STOCK TRANSFER AGREEMENTS

      The Corporation shall have power to enter into and perform any agreement
with any number of stockholders of any one or more classes of stock of the
Corporation to restrict the transfer of shares of stock of the Corporation of
any one or more classes owned by such stockholders in any manner not prohibited
by the General Corporation Law of Delaware.

      8.12 REGISTERED STOCKHOLDERS

      The Corporation shall be entitled to recognize the exclusive right of a
person registered on its books as the owner of shares to receive dividends and
to vote as such owner, shall be entitled to hold liable for calls and
assessments the person registered on its books as the owner of shares, and shall
not be bound to recognize any equitable or other claim to or interest in such
share or shares on the part of another person, whether or not it shall have
express or other notice thereof, except as otherwise provided by the laws of
Delaware.

                                   ARTICLE IX

                                   AMENDMENTS

      9.1 AMENDMENTS

      The original or other Bylaws of the Corporation may be adopted, amended or
repealed by the stockholders entitled to vote; provided, however, that the
Corporation may, in its Certificate, confer the power to adopt, amend or repeal
Bylaws upon the Directors. The fact that such power has been so conferred upon
the Directors shall not divest the stockholders of the power, nor limit their
power to adopt, amend or repeal Bylaws. Any adoption of new Bylaws or amendment
or repeal of these Bylaws must be approved by the holders of two-thirds of the
shares entitled to vote on such matter.

                                       19
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.1
<SEQUENCE>6
<FILENAME>y24537a5exv4w1.txt
<DESCRIPTION>EX-4.1: FORM OF COMMON STOCK CERTIFICATE
<TEXT>
<PAGE>

COUNTERSIGNED AND REGISTERED
                         REGISTRAR AND TRANSFER COMPANY
                                 (CRANFORD, NJ)
                                             TRANSFER AGENT AND REGISTRAR

                                                            AUTHORIZED SIGNATURE

                                                                     Exhibit 4.1


<Table>
<S>                                                                                                                     <C>
COMMON STOCK                                                                                                            COMMON STOCK

 *CV___*                                                                                                                  *______*
                                                      COMMVAULT SYSTEMS, INC.

                                        INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE

                                                                                                 SEE REVERSE FOR CERTAIN DEFINITIONS
                                                                                                                   CUSIP 204166 10 2

THIS CERTIFIES THAT

IS THE OWNER OF


                   FULLY PAID AND NON-ASSESSABLE SHARES OF THE PAR VALUE OF $.01 PER SHARE OF THE COMMON STOCK OF

                                                      COMMVAULT SYSTEMS, INC.


  transferable only on the books of the Corporation in person or by attorney upon surrender of this Certificate properly endorsed.

               This Certificate is not valid unless countersigned and registered by the Transfer Agent and Registrar.

              WITNESS the facsimile seal of the Corporation and facsimile signatures of its duly authorized officers.

              Dated:



         /s/ Warren H. Mondschein                       [Corporate Seal]                           /s/ N. Robert Hammer

VICE PRESIDENT, GENERAL COUNSEL AND SECRETARY                                       CHAIRMAN, CHIEF EXECUTIVE OFFICER AND PRESIDENT

</Table>

<PAGE>
THE CORPORATION WILL FURNISH WITHOUT CHARGE TO EACH SHARE OWNER WHO SO REQUESTS
A STATEMENT OF THE DESIGNATIONS, TERMS, RELATIVE RIGHTS, PRIVILEGES,
LIMITATIONS, PREFERENCE AND VOTING POWERS AND THE PROHIBITIONS, RESTRICTIONS
AND QUALIFICATIONS OF THE VOTING AND OTHER RIGHTS AND POWERS OF THE SHARES OF
EACH CLASS OF STOCK WHICH THE CORPORATION IS AUTHORIZED TO ISSUE AND OF THE
VARIATIONS IN THE RELATIVE RIGHTS AND PREFERENCES BETWEEN THE SHARES OF EACH
SERIES OF EACH CLASS OF STOCK WHICH THE CORPORATION IS AUTHORIZED TO ISSUE IN
SERIES INSOFAR AS THE SAME HAVE BEEN FIXED AND DETERMINED, AND OF THE AUTHORITY
OF THE BOARD OF DIRECTORS TO FIX AND DETERMINE THE RELATIVE RIGHTS AND
PREFERENCES OF SUBSEQUENT SERIES.

      The following abbreviations, when used in the inscription on the face of
this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:


TEN COM   - as tenants in common
TEN ENT   - as tenants by the entireties
JT TEN    - as joint tenants with right of survivorship and not as tenants in
            common


UNIF GIFT MIN ACT- ____ Custodian ____________
                      (Cust)                 (Minor)
                      under Uniform Gifts to Minors
                      Act _____________
                             (State)

UNIF TRANS MIN ACT- ___ Custodian ____________
                      (Cust)                 (Minor)
                      under Uniform Transfer to Minors
                      Act _____________
                             (State)

    Additional abbreviations may also be used though not in the above list.


FOR VALUE RECEIVED, ______________________________ hereby sell, assign and
transfer unto ______


PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE

_________________________________________

________________________________________________________________________________

________________________________________________________________________________
PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE

________________________________________________________________________________

_________________________________________________________________________ Shares

of the common stock represented by the within Certificate, and do hereby

irrevocably constitute and appoint _____________________________________________

________________________________________________________________________________

Attorney to transfer the said stock on the books of the within-named Corporation

with full power of substitution in the premises.

Dated, __________________________



                                   X ___________________________________________

                                   X ___________________________________________

                            NOTICE: THE SIGNATURE(S) TO THIS ASSIGNMENT
                                    MUST CORRESPOND WITH THE NAME(S) AS WRITTEN
                                    UPON THE FACE OF THE CERTIFICATE IN EVERY
                                    PARTICULAR, WITHOUT ALTERATION OR
                                    ENLARGEMENT OR ANY CHANGE WHATSOEVER.

Signature(s) Guaranteed



By ___________________________________________________________
THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR
INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND
CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17AD-15.

KEEP THIS CERTIFICATE IN A SAFE PLACE. IF IT IS LOST, STOLEN, MUTILATED OR
DESTROYED, THE CORPORATION WILL REQUIRE A BOND OF INDEMNITY AS A CONDITION TO
THE ISSUANCE OF A REPLACEMENT CERTIFICATE.


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>7
<FILENAME>y24537a5exv5w1.txt
<DESCRIPTION>EX-5.1: OPINION OF MAYER, BROWN, ROWE & MAW LLP
<TEXT>
<PAGE>
                                                                     EXHIBIT 5.1

                                                                          (MAYER
                                                                           BROWN
                                                                           ROWE
                                                                           & MAW
                                                                           LOGO)

September 15, 2006                                  Mayer, Brown, Rowe & Maw LLP
                                                           71 South Wacker Drive
                                                    Chicago, Illinois 60606-4637

                                                         Main Tel (312) 782-0600
                                                         Main Fax (312) 701-7711
                                                          www.mayerbrownrowe.com

CommVault Systems, Inc.
2 Crescent Place
Oceanport, NJ 07757

Re:  Registration Statement on Form S-1
     File No. 333-132550

Ladies and Gentlemen:

     We have acted as counsel to CommVault Systems, Inc., a Delaware corporation
(the "Company"), in connection with the corporate proceedings (the "Corporate
Proceedings") taken and to be taken relating to the public offering by the
Company and by certain stockholders of the Company of up to 12,777,778 shares of
the Company's common stock, $0.01 par value per share (the "Common Stock"). We
have also participated in the preparation of the Company's Registration
Statement on Form S-1 (File No. 333-132550) (the "Registration Statement") filed
with the Securities and Exchange Commission (the "Commission") under the
Securities Act of 1933, as amended, relating to such Shares. The Company will
offer and may sell up to 6,148,148 of such shares of Common Stock pursuant to
the Registration Statement (the "Primary Shares") and up to 6,629,630 of such
shares of Common Stock will be offered and may be sold by certain selling
stockholders pursuant to the Registration Statement (the "Secondary Shares").
Certain of the Secondary Shares will be issued to the selling stockholders upon
conversion of the outstanding shares of the Company's preferred stock (the
"Conversion"). In rendering the opinion set forth below, we have examined such
corporate and other records, instruments, certificates and documents as we
considered necessary to enable us to express this opinion.

     Based upon the foregoing, we are of the opinion that:

     1. Upon completion of the Corporate Proceedings, the Primary Shares will
have been duly authorized and, when the Primary Shares are delivered in
accordance with the Underwriting Agreement in substantially the form filed as
Exhibit 1.1 to the Registration Statement and the Corporate Proceedings, will be
validly issued, fully paid and non-assessable.

     2. The Secondary Shares which are currently outstanding ware validly
issued, fully paid and non-assessable.


<PAGE>

CommVault Systems, Inc.
September 15, 2006
Page 2

     3. Upon completion of the Corporate Proceedings, the Secondary Shares which
will be issued in the Conversion will be validly issued, fully paid and
non-assessable.

     We hereby consent to the filing of this opinion as Exhibit 5 to the
Registration Statement and to the reference to this firm under the caption
"Legal Matters" in the Prospectus constituting a part of the Registration
Statement.

                                             Very truly yours,



                                             /s/ Mayer, Brown, Rowe & Maw LLP

                                             Mayer, Brown, Rowe & Maw LLP





</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-9.1
<SEQUENCE>8
<FILENAME>y24537a5exv9w1.txt
<DESCRIPTION>EX-9.1: FORM OF VOTING TRUST AGREEMENT
<TEXT>
<PAGE>

                                                                     EXHIBIT 9.1

                             VOTING TRUST AGREEMENT

                              Relating to Shares of


                             COMMVAULT SYSTEMS, INC.


         THIS VOTING TRUST AGREEMENT (the "AGREEMENT") is made and entered into
as of September [-], 2006,1 by and among Sprout CEO Fund, L.P. ("SPROUT CEO
FUND"), DLJ Capital Corporation ("DLJ CAPITAL"), Sprout Growth II, L.P. ("SPROUT
GROWTH II"), Sprout Capital VII, L.P. ("SPROUT CAPITAL VII"), Sprout Capital IX,
L.P. ("SPROUT CAPITAL IX"), Sprout Entrepreneurs' Fund, L.P. ("SPROUT
ENTREPRENEURS' FUND"), Sprout IX Plan Investors, L.P. ("SPROUT IX PLAN
INVESTORS"), DLJ Merchant Banking Partners, L.P. ("DLJ MERCHANT BANKING
PARTNERS"), DLJ International Partners, C.V. ("DLJ INTERNATIONAL PARTNERS"), DLJ
Offshore Partners, C.V. ("DLJ OFFSHORE PARTNERS"), DLJMB Funding, Inc. ("DLJMB
FUNDING"), DLJ First ESC, L.P. ("DLJ FIRST ESC") and DLJ ESC II, L.P. ("DLJ ESC
II" and, together with Sprout CEO Fund, DLJ Capital, Sprout Growth II, Sprout
Capital VII, Sprout Capital IX, Sprout Entrepreneurs' Fund, Sprout IX Plan
Investors, DLJ Merchant Banking Partners, DLJ International Partners, DLJ
Offshore Partners, DLJMB Funding and DLJ First ESC, the "STOCKHOLDERS"), Wells
Fargo Bank, N.A., as trustee (together with its successors in such capacity, the
"TRUSTEE"), Credit Suisse First Boston Private Equity, Inc., a Delaware
corporation, and its successors ("CS PRIVATE EQUITY") and Credit Suisse
Securities (USA) LLC, a Delaware limited liability company, and its successors
("CS SECURITIES").

         WHEREAS, the parties hereto desire to record their arrangements with
respect to shares of common stock, par value $.01 per share ("COMMON STOCK"), of
CommVault Systems, Inc., a Delaware corporation (the "CORPORATION"), Series A
Preferred Stock, par value $.01 per share ("SERIES A PREFERRED STOCK"), of the
Corporation, Series B Preferred Stock, par value $.01 per share ("SERIES B
PREFERRED STOCK"), of the Corporation, Series C Preferred Stock, par value $.01
per share ("SERIES C PREFERRED STOCK"), of the Corporation, Series D Preferred
Stock, par value $.01 per share ("SERIES D PREFERRED STOCK"), of the
Corporation, Series E Preferred Stock, par value $.01 per

--------------------------
(1) To be executed at the closing of the initial public offering.


<PAGE>

share ("SERIES E PREFERRED STOCK" and, together with the Series A Preferred
Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred
Stock, the "SERIES A - E PREFERRED STOCK"), of the Corporation, Series AA
Preferred Stock, par value $.01 per share ("SERIES AA PREFERRED STOCK"), of the
Corporation, Series BB Preferred Stock, par value $.01 per share ("SERIES BB
PREFERRED STOCK"), of the Corporation, and Series CC Preferred Stock, par value
$.01 per share ("SERIES CC PREFERRED STOCK" and, together with the Series A - E
Preferred Stock, Series AA Preferred Stock and Series BB Preferred Stock, the
"PREFERRED STOCK"), of the Corporation.

         NOW, THEREFORE, the parties hereto agree as follows:

         SECTION 1. Certain Definitions. In this Agreement:

         (a) "CAPITAL STOCK" of any person means any and all shares, interests
(including partnership interests), rights to purchase, warrants, options,
participations or other equivalents of or interests in (however designated)
equity of such person, but excluding debt securities convertible into such
equity.

         (b) "COMMON SHARE" means a share of Common Stock.

         (c) "CONTROL AFFILIATE" means CS Private Equity (as defined above) and
any person controlling, controlled by or under common control with, directly or
indirectly, CS Private Equity.

         (d) "CS AFFILIATE" means any person who is a Control Affiliate,
Employee Affiliate or Other Affiliate.

         (e) "CS PARENT" means Credit Suisse (USA) Inc., a Delaware corporation,
and its successors.

         (f) "EMPLOYEE AFFILIATE" means any person employed by (or who is the
spouse, relative or relative of a spouse, in each case residing in the home of a
person employed by) a Control Affiliate.

         (g) "EXCHANGE ACT" means the Securities Exchange Act of 1934.

         (h) "EXCLUDED CAPITAL STOCK" means shares of Capital Stock of the
Corporation that any CS Affiliate owns (or has the right to acquire within 60
days) that are not subject to this Agreement.

         (i) "HOLDER" means from time to time, any person for whom Shares are
held hereunder by the Trustee.

         (j) "LOCKUP AGREEMENTS" means collectively the agreements between each
of the parties to this Agreement (other than the Trustee, CS Private Equity and
CS Securities)

                                       2

<PAGE>

and CS Securities and Goldman, Sachs & Co., in each case dated as of [January
17] 2, 2006.

         (k) "NEW REGISTRATION RIGHTS AGREEMENT" means the Registration Rights
Agreement, dated as of September [-], 2006,3 among the Corporation, each of the
Stockholders, Thomas J. Barry, Larry Cormier, Randy Fodero, Robert
Freiburghouse, Bob Gailus, N. Robert Hammer, David H. Ireland, Lou Miceli, Tom
Miller and Scotty R. Neal.

         (l) "OTHER AFFILIATE" means any person that has a substantial business
relationship with a Control Affiliate and which is not itself a Control
Affiliate.

         (m) "PERSON" means any individual, corporation, partnership, limited
liability company, joint venture, association, joint-stock company, trust,
unincorporated organization, government or any agency or political subdivision
thereof or any other entity.

         (n) "PREFERRED SHARE" means a share of Preferred Stock.

         (o) "SECURITIES ACT" means the Securities Act of 1933.

         (p) "SERIES AA REGISTRATION RIGHTS AGREEMENT" means the Amended and
Restated Registration Rights Agreement, dated as of September 2, 2003, entered
into by and among the Corporation and certain of its stockholders, related to
shares of Series AA Preferred Stock.

         (q) "SERIES BB REGISTRATION RIGHTS AGREEMENT" means the Amended and
Restated Registration Rights Agreement, dated as of September 2, 2003, entered
into by and among the Corporation and certain of its stockholders, related to
shares of Series BB Preferred Stock.

         (r) "SERIES CC REGISTRATION RIGHTS AGREEMENT" means the Amended and
Restated Registration Rights Agreement, dated as of September 2, 2003, entered
into by and among the Corporation and certain of its stockholders, related to
shares of Series CC Preferred Stock.

         (s) "SHARE" means a Common Share, Preferred Share or any other Share
Equivalent.

         (t) "SHARE EQUIVALENT" means at any time any security convertible into,
exchangeable for, or carrying the right to acquire Common Stock or
subscriptions, warrants, options, rights or other arrangements obligating the
Corporation to issue or

-------------------------

(2) CS Private Equity to confirm.

(3) To be executed at the closing of the initial public offering.

                                        3

<PAGE>

dispose of any of shares of Common Stock, regardless whether such security is
convertible, exchangeable or exercisable at such time.

         (u) "STOCKHOLDERS AGREEMENT" means the Amended and Restated
Stockholders Agreement dated as of May 22, 2006, among the Corporation, each of
the Stockholders, Thomas J. Barry, Larry Cormier, Randy Fodero, Robert
Freiburghouse, Bob Gailus, N. Robert Hammer, David H. Ireland, Lou Miceli, Tom
Miller and Scotty R. Neal.

         (v) "VOTING STOCK" of a person means all classes of Capital Stock of
such person then outstanding and normally entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers or
trustees thereof.

         SECTION 2. Deposit.

         (a) Each of the Stockholders hereby duly assigns and delivers or has
caused to be duly assigned and delivered to the Trustee to be held pursuant to
this Agreement the number of Shares set forth opposite its name on Schedule A
attached hereto (the "INITIAL DEPOSIT"). Upon the request of CS Securities, each
of the Stockholders shall assign and deliver such number of Shares from time to
time owned by such Stockholder such that, when together with all other Excluded
Capital Stock owned by CS Affiliates, the Excluded Capital Stock owned by such
Stockholder does not represent five percent (5%) or more in the aggregate of the
total voting power of the Voting Stock of the Corporation outstanding at such
time. Subject to the provisions of Section 2(b) below, each of the parties to
this Agreement (other than the Trustee) shall from time to time deliver or cause
to be delivered by entities under its control to the Trustee all Shares owned by
any CS Affiliate or acquired by any CS Affiliate such that Excluded Capital
Stock owned by CS Affiliates does not represent five percent (5%) or more in the
aggregate of the total voting power of the Voting Stock of the Corporation
outstanding at such time.

         (b) For purposes of determining whether five percent (5%) or more in
the aggregate of the total number of shares of the Voting Stock of the
Corporation at any time outstanding are owned by CS Affiliates, there shall be
excluded, and no deposit of Shares shall be required hereunder as a consequence
of, any Shares:

                  (i) held by CS Securities or any other Control Affiliate that
         is registered as a broker-dealer under the Exchange Act, if such shares
         are held in connection with its normal trading activities as a
         broker-dealer; provided, however, that CS Parent shall cause CS
         Securities or such other Control Affiliate to agree that it will not
         vote such shares,

                  (ii) held by CS Securities or any other Control Affiliate that
         is a registered broker-dealer under the Exchange Act, if such shares
         are held in a syndicate or trading account and were acquired by it in
         its capacity as an underwriter or placement agent, whether in an
         offering registered under the Securities Act or otherwise; provided,
         however, that CS Parent shall cause CS Securities or such other Control
         Affiliate to agree that it will not vote such shares,

                                       4

<PAGE>

                  (iii) held by CS Securities for the account of any person
         other than a Control Affiliate or Employee Affiliate or in the name of
         a customer account, which customer is a person other than a Control
         Affiliate or Employee Affiliate; provided, however, that CS Securities
         may vote the shares only when instructed by the beneficial owner
         thereof or as otherwise permitted under the rules of the primary
         national securities exchange on which the Shares are listed, if any,

                  (iv) held in an investment advisory account as to which a
         Control Affiliate is an investment advisor, the assets of which account
         are not owned by a Control Affiliate, or

                  (v) held by an Employee Affiliate other than a person holding
         the position of Managing Director or above (or performing the
         comparable function) of CS Securities or any of its subsidiaries or
         held by an Other Affiliate, unless in either case a contract or other
         arrangement (other than this Agreement) regarding the voting of such
         Shares exists between such Employee Affiliate or Other Affiliate and
         any Control Affiliate.

         (c) From time to time after the date hereof, any Holder or any CS
Affiliate may deposit additional Shares to be held pursuant to this Agreement by
assigning and delivering such Shares to the Trustee.

         (d) The Trustee hereby acknowledges that the Shares deposited with the
Trustee pursuant to the Initial Deposit are subject to the Lockup Agreements.

         SECTION 3. Transfer on Books of Corporation. The Trustee shall, to the
extent applicable, cause all Shares transferred to or deposited with it in its
capacity as Trustee hereunder (such Shares, the "TRUST SHARES") to be registered
as transferred to it as Trustee on the books of the Corporation and will issue
and deliver by first class mail or overnight courier to each Holder a Voting
Trust Certificate (a "TRUST CERTIFICATE") for the number of Shares so
transferred to the Trustee.

         SECTION 4. Form. Trust Certificates shall be in substantially the
following form (with such modifications as may be appropriate if the applicable
Trust Certificate represents Share Equivalents):

                  "THIS VOTING TRUST CERTIFICATE MAY BE TRANSFERRED TO A CS
                  AFFILIATE (AS DEFINED IN THE VOTING TRUST AGREEMENT (AS
                  DEFINED BELOW) AND IS SUBJECT TO TERMS AND CONDITIONS SET
                  FORTH IN THE VOTING TRUST AGREEMENT DATED AS OF SEPTEMBER [-],
                  2006 (THE "VOTING TRUST AGREEMENT"), A COPY OF WHICH HAS BEEN
                  FILED IN THE REGISTERED OFFICE IN THE STATE OF DELAWARE OF
                  COMMVAULT SYSTEMS, INC., A DELAWARE

                                       5

<PAGE>

                  CORPORATION (THE "CORPORATION"). SUCH COPY IS OPEN TO
                  INSPECTION DAILY DURING BUSINESS HOURS BY ANY STOCKHOLDER OF
                  THE CORPORATION OR ANY BENEFICIARY OF THE VOTING TRUST CREATED
                  PURSUANT TO SUCH VOTING TRUST AGREEMENT.

                             CommVault Systems, Inc.

                            VOTING TRUST CERTIFICATE

                    Certificate No. ____ No. of Shares ______

         This certifies that ____________ (the "HOLDER") has transferred to the
undersigned Trustee the above-stated number of shares of Common Stock, par value
$.01 per share, of CommVault Systems, Inc., a Delaware corporation (the
"CORPORATION"), to be held by the Trustee pursuant to the terms of the Voting
Trust Agreement dated as of September [-], 2006 (the "VOTING TRUST AGREEMENT"),
a copy of which agreement has been delivered to the above-named Holder and filed
in the registered office of the Corporation in the State of Delaware. The
Holder, or his or its registered assigns, will be entitled (i) to receive
payments equal to any and all cash dividends collected by the Trustee on the
above-stated number of shares, (ii) to receive all other dividends or
distributions except to the extent that property received is required to be
deposited in the trust created by the Voting Trust Agreement and (iii) to the
delivery of a certificate or certificates for that number of shares on the
termination of the Voting Trust Agreement, in accordance with its provisions. At
all times prior to the termination of the Voting Trust Agreement, the Trustee
has the exclusive right to vote the above-stated number of shares, or give
written consent, in person or by proxy, at all meetings of stockholders of the
Corporation, and in all proceedings in which the vote or consent, written or
otherwise, of the holders of securities of the Corporation may be required or
authorized by law.

         This Voting Trust Certificate is transferable to any CS Affiliate (as
defined in the Voting Trust Agreement) on the books maintained by the Trustee at
the principal corporate trust office of the Trustee by the Holder hereof, in
person or by duly authorized attorney, and upon surrender hereof; and until so
transferred the Trustee may treat the registered Holder hereof as the absolute
owner hereof for all purposes.

         The Holder, by the acceptance of this Voting Trust Certificate, agrees
to be bound by all of the provisions of the Voting Trust Agreement as fully as
if its terms were set forth in this Voting Trust Certificate.

                                       6

<PAGE>

            EXECUTED this ___ day of ___________, ____

                                       ------------------------

                                       By:_____________________

                                       Name:___________________

                                       Title:__________________


          [Form of Assignment for Reverse of Voting Trust Certificate]

            For value received, ___________ hereby sells, assigns, and transfers
unto ____________ the within Voting Trust Certificate and all rights and
interests represented thereby, and does hereby irrevocably constitute and
appoint _______ attorney to transfer such Voting Trust Certificate on the books
of the within-named Trustee with full power of substitution in the premises.

            Date:  ________________________

            Signed:                       *"
                     ----------------------


         [*Signatures must be guaranteed by an "eligible guarantor institution"
meeting the requirements of the Trustee, which requirements include membership
or participation in STAMP or such other "signature guarantee program" as may be
determined by the Trustee in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.]

         SECTION 5. Additional Trust Certificates. Any Holder may at any time
deposit with the Trustee additional certificates (or the equivalent evidence of
ownership in the case of Share Equivalents) for Shares. Any CS Affiliate
acquiring Shares may at any time become a Holder by (a) depositing, or causing
to be deposited, certificates (or the equivalent evidence of ownership in the
case of Share Equivalents) for Shares, duly endorsed for transfer, with the
Trustee and (b) accepting a Voting Trust Certificate in respect of such Shares.

         SECTION 6. Voting; Powers.

         (a) At all times prior to the termination of the voting trust created
herein, the Trustee shall have the exclusive right to vote the Trust Shares, or
give written consent, in person or by proxy, at all meetings of stockholders of
the Corporation, and in all proceedings in which the vote or consent, written or
otherwise, of the holders of Shares may be required or authorized by law.

                                       7

<PAGE>

         The Trustee shall vote all Trust Shares in accordance with this
Agreement. The Trustee shall have full power and authority, and it is hereby
empowered and authorized, to vote the Trust Shares, and to do any and all other
things and take any and all other actions as fully as any stockholder of the
Corporation might do if personally present at a meeting of the stockholders of
the Corporation. To effect the foregoing (and to avoid any potential timing
problems that might otherwise be caused if the Trustee were required to wait
until all votes are tallied before voting the Trust Shares), the Trustee may
give instructions to the Corporation to the effect that the Trust Shares are
being voted on such matter "on a pro rata basis proportionate to all other votes
actually cast." The Trustee shall vote the Trust Shares on a pro rata basis
proportionate to all other votes, other than the Trust Shares, actually cast on
the particular matter, except with respect to matters that under current or
future Delaware law require approval by a class of outstanding shares of the
Corporation, which class includes the Trust Shares, the Trust Shares shall be
voted on a pro rata basis proportionate to all other votes of Shares of such
class actually cast, other than Trust Shares, actually voting on the particular
matter.

         (b) The Trustee shall take all necessary action to ensure that the
Trust Shares are represented at all stockholder meetings of the Corporation such
that the Trust Shares are counted as present for purposes of determining the
existence of a quorum at such meeting under the Delaware General Corporation Law
and the Corporation's Certificate of Incorporation and By-laws; provided,
however, that this clause (b) shall not obligate the Trustee to vote on any
matter.

         (c) Each Holder agrees that it will not communicate with the Trustee in
connection with any proceeding in which the vote or consent of the holders of
Shares may be required or authorized by law or otherwise seek to influence the
Trustee in the exercise of its right to vote or consent in any such proceedings.
Notwithstanding anything herein to the contrary, the Trustee shall vote the
Trust Shares (and use its power or right, if any, to designate or remove
directors of the Corporation) to prevent the election of more than one CS
Affiliate as a director of the Corporation. The duties of the Trustee under this
Agreement shall include exercising reasonable effort under this Agreement in a
manner that ensures that no CS Affiliate exercises control over the Corporation.
CS Private Equity shall promptly provide to the Trustee from time to time, upon
request, such information as is reasonably necessary (including certificates or
other documents) in order to enable the Trustee to carry out the foregoing
obligations; provided that the Trustee shall not be held responsible for
identifying a person as a CS Affiliate unless it has actual knowledge that such
person is a CS Affiliate.

         SECTION 7. Dividends. If the Corporation pays or issues dividends or
makes other distributions on the Trust Shares, the Trustee shall accept and
receive such dividends and distributions. Upon receipt of dividends and
distributions the same shall be prorated among the Holders that have a
beneficial interest hereunder in the Trust Shares with respect to which such
dividend or other distribution was made in accordance with their interests and,
subject to the next sentence, the amount shall be distributed promptly pursuant
to transfer instructions set forth on Schedule B attached hereto. If the
dividend or distribution is in Shares, such Shares shall be held by the Trustee
under the

                                       8

<PAGE>

voting trust created herein and new Trust Certificates representing the Shares
received shall be issued to the applicable Holders. Holders entitled to receive
such dividends or distributions, or Trust Certificates in respect thereof,
described in this Section 7 shall be those Holders registered as such on the
transfer books of the Trustee at the close of business on the day fixed by the
Corporation for the taking of a record to determine those holders of its stock
entitled to receive such dividends or distributions. In the performance of its
duties to deliver cash dividends under this Agreement, the Trustee shall not be
obligated to risk its own funds and will not be liable for taxes or other
charges related to the delivery of such dividends or distributions.

         SECTION 8. Retention of Registration Rights. Each Holder, if such
Holder is a party to the Series AA Registration Rights Agreement, Series BB
Registration Rights Agreement, the Series CC Registration Rights Agreement, the
Stockholders Agreement or the New Registration Rights Agreement, retains, after
depositing any Shares with the Trustee pursuant to this Agreement, the rights
granted to such Holder in any of the above-mentioned agreements to which such
Holder is a party, and shall retain the right to agree, in respect of Shares
subject to such agreements, to any amendments to such agreements.

         SECTION 9. Termination. The voting trust created herein shall terminate
on the earliest to occur of:

                  (a) ten years from the date hereof;

                  (b) the written election of CS Private Equity, CS Securities
         or the Holders of Trust Certificates representing fifty percent (50%)
         or more of the Trust Shares represented thereby; provided that (i) if
         CS Private Equity or CS Securities delivers the written election, CS
         Private Equity or CS Securities, as applicable, delivers (or such
         Holders deliver) to the Trustee an opinion of independent nationally
         recognized counsel who are experts in matters involving the federal
         securities law, that, immediately after giving effect to such
         termination, no CS Affiliate should be an affiliate of the Corporation
         within the meaning of Rule 144 under the Securities Act and (ii) the
         Trustee shall have received a certificate of an officer of CS Private
         Equity or CS Securities, as applicable, (on which it may rely
         conclusively) to the effect that clause (b)(i) has been satisfied,
         together with a copy of the opinion called for thereby; or

                  (c) transfer of, or request for, all of the Trust Shares in
         accordance with Section 10 or 11, as applicable.

         Subject to CS Private Equity's delivery of the officer's certificate
and the opinion of counsel described in Section 9(b) above, an election pursuant
to Section 9(b) shall be effective upon delivery of notice thereof to the
Trustee.

         Upon the termination of the voting trust herein created, the Holders
shall surrender their Trust Certificates to the Trustee, and the Trustee shall
deliver by first class mail or overnight courier to the Holders certificates (or
the equivalent evidence of

                                        9

<PAGE>

ownership in the case of Share Equivalents) for Shares, properly endorsed for
transfer (to the extent possible), equivalent to the number and type of Shares
represented by the respective Trust Certificates surrendered.

         SECTION 10. Transfers of Trust Shares.

         (a) Except as provided in Sections 9, 11 and 12 and in subsections (a),
(b) and (c) of this Section 10, certificates (or the equivalent evidence of
ownership in the case of Share Equivalents) for Trust Shares may not be
delivered to a Holder, a Holder's designee or any other person. A Holder may
notify the Trustee in writing that the Holder desires to cause a certificate or
certificates (or the equivalent evidence of ownership in the case of Share
Equivalents) for Trust Shares in which the Holder has a beneficial interest
hereunder to be distributed or transferred to any person, including such Holder,
only if such transfer is an Eligible Transfer, which is defined as any transfer
meeting the requirements set forth in clause (a)(i), (a)(ii) or (a)(iii) below
or as otherwise permitted pursuant to clause (c) below or Section 9, 11 or 12.
Any person that acquires Trust Shares pursuant to an Eligible Transfer is
hereinafter referred to as an "ELIGIBLE TRANSFEREE".

                  (i) Transfer of Trust Shares to any Control Affiliate or any
         Employee Affiliate holding the Position of Managing Director or Above.
         An "ELIGIBLE TRANSFER" for purposes of this clause (a)(i) means any
         distribution or transfer of Trust Shares to any Control Affiliate or
         any Employee Affiliate holding the position of Managing Director or
         above (or performing the comparable function) of any Control Affiliate
         (including by way of a distribution by a Holder to its limited
         partners); provided that either (A) (x) a contract or other arrangement
         (other than this Agreement) regarding the voting of such Trust Shares
         does not exist between any CS Affiliate and such transferee and (y)
         immediately after giving effect to such distribution or transfer, CS
         Affiliates will not own in the aggregate Excluded Capital Stock
         amounting to 5% or more of the total voting power of the Voting Stock
         of the Corporation then outstanding or (B) the Trust Shares distributed
         or transferred to such Control Affiliate or Employee Affiliate shall be
         subject to this Agreement and shall be automatically deposited with the
         Trustee in accordance with Section 2. In connection with any
         distribution or transfer pursuant to this clause (a)(i), CS Private
         Equity shall deliver a certificate of an officer of CS Private Equity
         certifying that, immediately after giving effect to such transfer, the
         conditions of either clause (i)(A) or (i)(B) are satisfied.

                  (ii) Transfer of Trust Shares to any Employee Affiliate not
         holding the Position of Managing Director or Above. An "ELIGIBLE
         TRANSFER" for purposes of this clause (a)(ii) means any distribution or
         transfer of Trust Shares to any Employee Affiliate not holding the
         position of Managing Director or above of any Control Affiliate
         (including by way of a distribution by a Holder to its limited
         partners); provided that (A) a contract or other arrangement (other
         than this Agreement) regarding the voting of such Trust Shares does not
         exist between any CS Affiliate and such transferee and (B) any proposed
         distribution or transfer will

                                       10

<PAGE>

         not be an Eligible Transfer if, immediately after giving effect to such
         distribution or transfer, the proposed distributee or transferee,
         together with its affiliates, would be an affiliate of the Corporation
         within the meaning of Rule 144 of the Securities Act. In connection
         with any distribution or transfer pursuant to this clause (a)(ii), CS
         Private Equity shall deliver a certificate of an officer of CS Private
         Equity certifying that, immediately after giving effect to such
         transfer, the conditions of clause (a)(ii)(A) and (B) are satisfied.

                  (iii) Transfer of Trust Shares to Other Affiliates and Third
         Parties Not Affiliated with CS Private Equity. An "ELIGIBLE TRANSFER"
         for purposes of this clause (a)(iii) means any distribution or transfer
         of Trust Shares to any Other Affiliate or any third party not
         affiliated with CS Private Equity (including by way of a distribution
         by a Holder to its limited partners); provided that (A) a contract or
         other arrangement (other than this Agreement) regarding the voting of
         such Trust Shares does not exist between any CS Affiliate and such
         transferee and (B) any proposed distribution or transfer will not be an
         Eligible Transfer if, immediately after giving effect to such
         distribution or transfer, the proposed distributee or transferee,
         together with its affiliates, would be an affiliate of the Corporation
         within the meaning of Rule 144 of the Securities Act. In connection
         with any distribution or transfer pursuant to this clause (a)(iii), (x)
         in the case of a distribution or transfer to an Other Affiliate, CS
         Private Equity shall deliver a certificate of an officer of CS Private
         Equity certifying that, immediately after giving effect to such
         distribution or transfer, the conditions of clause (a)(iii)(A) and (B)
         are satisfied and (y) in the case of a distribution or transfer to a
         third party not affiliated with CS Private Equity, CS Private Equity or
         such distributee or transferee shall deliver an opinion of independent
         nationally recognized counsel who are experts in matters involving the
         federal securities law, that, immediately after giving effect to such
         transfer, such distributee or transferee, together with its affiliates,
         should not be an affiliate of the Corporation within the meaning of
         Rule 144 of the Securities Act; provided, however, that in the case of
         any distribution of Trust Shares under this clause (a)(iii) by any
         Holder that is a limited partnership (a "LIMITED PARTNERSHIP") to its
         limited partners so long as (I) the Limited Partnership has more than
         150 limited partners (or, if such Limited Partnership has less than 150
         limited partners, such distribution of Trust Shares is made
         simultaneously with the distribution of Trust Shares by a Holder that
         is a Limited Partnership that has more than 150 limited partners), (II)
         the distribution to each limited partner is in proportion to such
         limited partners' interests in the Limited Partnership, (III) each
         limited partner, together with its affiliates, will receive Trust
         Shares representing less than 0.5% of the total voting power of the
         Voting Stock of the Corporation then outstanding, (IV) the Limited
         Partnership is distributing all Trust Shares owned by such Limited
         Partnership and (V) the Limited Partnership will be fully divested of
         dispositive and voting power over such Trust Shares being distributed
         after such distribution, CS Private Equity shall deliver a certificate
         of an officer of CS Private Equity certifying that each of the
         conditions of this proviso to clause (a)(iii) are satisfied and that,
         immediately after

                                       11

<PAGE>

         giving effect to such distribution, CS Private Equity has no reason to
         believe that any such limited partner, together with its affiliates,
         should be an affiliate of the Corporation within the meaning of Rule
         144 of the Securities Act.

                  (iv) Notwithstanding the foregoing, if a tender offer to
         purchase all the outstanding shares of Common Stock has been made in
         accordance Section 14(d) and Regulation 14D of the Exchange Act, then a
         Holder may notify the Trustee in writing that the Holder desires to
         cause a certificate or certificates for Trust Shares in which the
         Holder has a beneficial interest hereunder to be tendered in such
         tender offer pursuant to the procedures set forth in the applicable
         Schedule TO (or any successor form). The Trustee shall tender Trust
         Shares in accordance with such Holder's written instructions; provided
         that after such Trust Shares have been tendered and prior to
         consummation of the tender offer, such Trust Shares shall remain
         subject to this Agreement. If the tender offer is not consummated, such
         tendered Trust Shares shall be delivered to the Trustee and shall be
         subject to this Agreement.

         (b) The notice delivered pursuant to Section 10(a) shall name such
Eligible Transferee and shall state

                  (i) its mailing address;

                  (ii) the proposed transfer date (which date shall be not less
         than five days after the Trustee's receipt of such notice);

                  (iii) the number and type of Shares to be transferred; and

                  (iv) the consideration, if any, to be paid by such Eligible
         Transferee therefor.

         The notice to the Trustee shall also contain a representation that such
distributee or transferee is an Eligible Transferee and shall be accompanied by
a Trust Certificate or Certificates of the Holder, duly endorsed for transfer,
representing not less than the number of Shares of the type to be transferred to
the Eligible Transferee. On the date specified in such notice, and upon receipt
by the Trustee from such Eligible Transferee of the specified consideration, if
any, the Trustee shall deliver: (i) to the Eligible Transferee, a certificate
(or the equivalent evidence of ownership in the case of Share Equivalents) for
the number of Shares of the type specified in such notice, registered in the
name of the Trustee and duly endorsed for transfer, and (ii) to the Holder, (A)
a Trust Certificate representing a number of Shares, if any, equal to the number
of Shares of the type represented by the surrendered Trust Certificate less the
number of Shares of the type transferred to such Eligible Transferee, and (B)
the consideration, if any, received from such Eligible Transferee. Such
consideration shall be distributed promptly to such Holder pursuant to the
transfer instructions set forth on Schedule B attached hereto.

                                       12

<PAGE>

         (c) A Holder may at any time direct the Trustee by notice in writing to
transfer a certificate or certificates (or the equivalent evidence of ownership
in the case of Share Equivalents) for Shares in which the Holder has a
beneficial interest hereunder (i) to an underwriter (including CS Private
Equity) in connection with a public offering of the Shares registered under the
Securities Act or (ii) in connection with sales made pursuant to Rule 144 (other
than subsection (k) thereof) under the Securities Act through a broker-dealer
(including CS Private Equity). Such notice shall state (A) the underwriter's or
broker dealer's mailing address, (B) the proposed transfer date (which date
shall not be less than three days after the Trustee's receipt of such notice),
(C) the number and type of Shares to be transferred, and (D) the consideration,
if any, to be paid. The notice shall also be accompanied by a certificate of an
officer of the Holder certifying that such request is being made solely for
sales made in connection with a public offering of the Shares registered under
the Securities Act or sales made pursuant to Rule 144 (other than subsection (k)
thereof) under the Securities Act and a Trust Certificate or Certificates of the
Holder, duly endorsed for transfer, representing not less than the number of
Shares of the type to be transferred. The Trustee shall be entitled to
conclusively rely upon such certificate. On the date specified in such notice,
and upon receipt by the Trustee from such underwriter or such other transferee
of the specified consideration, if any, the Trustee shall deliver: (x) to the
underwriter or such other transferee, a certificate (or the equivalent evidence
of ownership in the case of Share Equivalents) for the number of Shares of the
type specified in such notice, registered in the name of the Trustee and duly
endorsed for transfer, and (y) to the Holder, a Trust Certificate representing a
number of Shares, if any, equal to the number of Shares represented by the
surrendered Trust Certificate less the number of Shares transferred to such
underwriter or such other transferee, and (z) to the Holder, the consideration,
if any, received from such underwriter or such other transferee. Such
consideration shall be distributed promptly to the Holder pursuant to the
transfer instructions set forth on Schedule B attached hereto.

         Notwithstanding the foregoing, if the Holder intends to transfer Shares
pursuant to the exercise of the over-allotment option granted to the
underwriters in connection with a public offering of Shares, the transfer date
in the notice may be less than five but shall not be less than two days after
the Trustee's receipt of such notice; provided that if the transfer date in the
notice is less than five days after the Trustee's receipt of the notice, the
Trustee shall only be obligated to use its reasonable best efforts to effect the
transfer of such Shares by such transfer date.

         Nothing in this Section 10 or elsewhere in this Agreement shall
prohibit a Holder from transferring Trust Certificates in accordance with the
terms of the Trust Certificates.

         SECTION 11. Requests for Shares. A Holder (hereinafter referred to as a
"REQUESTING PARTY" for the purpose of this Section 11) may request of the
Trustee in writing that the Trustee transfer to such Requesting Party a
certificate or certificates (or the equivalent evidence of ownership in the case
of Share Equivalents) for Shares in which the Requesting Party has a beneficial
interest hereunder, which Shares shall not be subject to this Agreement;
provided, however, that (a) the Trustee shall not honor such request if
immediately after giving effect thereto CS Affiliates will own in the aggregate

                                       13

<PAGE>

Excluded Capital Stock amounting to 5% or more of the total voting power of the
Voting Stock of the Corporation then outstanding; (b) the Trustee shall not
honor such request if immediately after giving effect thereto, the Requesting
Party, together with its affiliates, will be an affiliate of the Corporation
within the meaning of Rule 144 of the Securities Act; and (c) if the Requesting
Party is not CS Private Equity, the Trustee shall not honor such request unless
CS Private Equity consents in writing to such request. Such written request
shall name such Requesting Party and shall state (i) the proposed transfer date
(which date shall be not less than five days after the Trustee's receipt of such
request) and (ii) the number and type of Shares to be transferred. The notice to
the Trustee shall also be accompanied by (A) a Trust Certificate or Certificates
of the Requesting Party, duly endorsed for transfer, representing not less than
the number of Shares of the type to be transferred to the Requesting Party, (B)
a certificate of an officer of CS Private Equity certifying that immediately
after giving effect to such request all CS Affiliates will own in the aggregate
Excluded Capital Stock amounting to less than 5% of the total voting power of
the Voting Stock of the Corporation then outstanding and (C) if the Requesting
Party is not a CS Affiliate, an opinion of independent nationally recognized
counsel who are experts in matters involving the federal securities law, that,
immediately after giving effect to such request, such Requesting Party, together
with its affiliates, should not be an affiliate of the Corporation within the
meaning of Rule 144 of the Securities Act. The Trustee shall be entitled to
conclusively rely upon such certificate or legal opinion. On the date specified
in such request, and upon receipt by the Trustee from the Requesting Party of
such certificates and legal opinions, as applicable, the Trustee shall deliver
to the Requesting Party a certificate (or the equivalent evidence of ownership
in the case of Share Equivalents) for the number of Shares of the type specified
in such notice, registered in the name of the Trustee and duly endorsed for
transfer.

         SECTION 12. Exercise, Conversion, Exchange or Cancellation of Shares.
The Trustee shall, upon written instruction of a Holder, submit to the
Corporation for exercise, conversion, exchange or cancellation any Share in
which such Holder has a beneficial interest hereunder. Such notice shall state
(a) whether such Shares are to be exercised, converted, exchanged or cancelled,
(b) the date on which such Shares are to be submitted to the Corporation (which
date shall not be less than five days after the Trustee's receipt of such
notice), (c) the number and type of Shares to be submitted to the Corporation
and (d) the consideration, if any, to be received upon such exercise,
conversion, exchange or cancellation from the Corporation. The notice shall be
accompanied by (i) a Trust Certificate or Certificates of the Holder, duly
endorsed for transfer, representing not less than the number of Shares of the
type to be submitted to the Corporation and (ii) any exercise price or other
payment and any agreement, certificate or other documentation required in
connection with such exercise, conversion, exchange or cancellation. On the date
specified in such notice, and against receipt from the Corporation of the
specified consideration, if any, the Trustee shall deliver by first class mail:
(A) to the Corporation, (x) a certificate or certificates for the number of
Shares of the type specified in such notice, registered in the name of the
Trustee and duly endorsed for transfer and (y) any exercise price or other
payment and any agreement, certificate or other documentation delivered to the
Trustee by such Holder with such notice and (B) to

                                       14

<PAGE>

the Holder, (x) a Trust Certificate representing a number of Shares equal to the
number of Shares represented by the surrendered Trust Certificate or
Certificates less the number of Shares submitted to the Corporation and (y) the
consideration, if any, received by the Trustee pursuant to such exercise,
conversion, exchange or cancellation; provided that if such consideration
includes Shares, such Shares shall be retained and held by the Trustee pursuant
to this Agreement and new Trust Certificates representing such Shares shall be
issued to such Holder.

         SECTION 13. Increase or Decrease in Number of Shares. In the event of
an increase in the number of Shares by virtue of a stock split or the decrease
in the number of Shares because of a contraction of Shares or a change in the
number of outstanding Shares as a result of some other recapitalization in which
the Corporation receives no consideration for the issuance of the additional or
reduced number of Shares, the new additional or changed number of Shares shall
be held by the Trustee and new Trust Certificates representing the appropriate
changed number of Shares shall be issued to Holders upon surrender of the then
existing Trust Certificates.

         SECTION 14. Successor Trustee. There shall initially be one Trustee of
the voting trust created herein. Upon the liquidation, dissolution, winding-up,
suspension, incapacity, resignation or removal (in accordance with Section 15
below) of the initial Trustee, CS Private Equity or the Holders of Trust
Certificates representing fifty percent (50%) or more of the Trust Shares shall
appoint a successor Trustee; provided, however, that such successor Trustee may
not be a CS Affiliate. In the event a successor Trustee shall not have been
appointed within 30 days of such removal, the Trustee may petition a court of
competent jurisdiction to appoint such a successor. In the event that the
Trustee consolidates with, merges with or converts into, or transfers all or
substantially all of its corporate trust assets to, another corporation that is
a bank or trust company, the surviving or transferee corporation (unless it is a
CS Affiliate) may become the successor Trustee upon notice to the signatories
hereto but without further action by the signatories or any Holder.

         SECTION 15. Removal / Resignation of Trustee.

         (a) A Trustee may be removed by CS Private Equity, CS Securities or the
Holders of Trust Certificates representing fifty percent (50%) or more of the
Trust Shares:

                  (i) if it is determined by a court of competent jurisdiction
         that either (A) the Trustee has willfully and materially violated the
         terms of the trust created herein, or (B) the Trustee has been guilty
         of malfeasance, misfeasance or dereliction of duty hereunder;

                  (ii) if the Trustee shall have commenced a voluntary case or
         other proceeding seeking liquidation, reorganization or other relief
         with respect to itself or its debts under any bankruptcy, insolvency or
         other similar law now or hereafter in effect, or seeking the
         appointment of a trustee, receiver, liquidator, custodian or other
         similar official of it or any substantial part of its property, or

                                       15

<PAGE>

         shall have consented to any such relief or to the appointment of or
         taking possession by any such official in an involuntary case or other
         proceeding commenced against it, or shall have made a general
         assignment for the benefit of creditors, or shall have failed generally
         to pay its debts as they become due, or shall have taken any corporate
         action to authorize any of the foregoing; or

                  (iii) if an involuntary case or other proceeding shall have
         been commenced against the Trustee seeking liquidation, reorganization
         or other relief with respect to it or its debts under any bankruptcy,
         insolvency or other similar law now or hereafter in effect, or seeking
         the appointment of a trustee, receiver, liquidator, custodian or other
         similar official of it or any substantial part of its property, and
         such involuntary case or other proceeding shall have remained
         undismissed and unstayed for a period of 60 days; or an order for
         relief shall have been entered against the Trustee under the federal
         bankruptcy laws as now or hereafter in effect.

         (b) If CS Private Equity, CS Securities or the Holders of Trust
Certificates representing fifty percent (50%) or more of the Trust Shares then
deposited hereunder determine that a basis exists for removal of the Trustee
under Section 15(a) above, they shall deliver written notice of such
determination to the Trustee stating the basis for such removal.

         (c) The Trustee may resign its position as such (i) upon ten days'
written notice to CS Private Equity and CS Securities, but only if a successor
Trustee, appointed as provided for in Section 14 above, has agreed to serve as
such effective upon the effectiveness of the resignation of the Trustee then
acting, or (ii) in any event upon thirty days' written notice to CS Private
Equity and CS Securities.

         SECTION 16. Trustee May Own Shares. Nothing in this Agreement shall
prevent the Trustee from owning Shares or options to purchase Shares in its
individual capacity or in any capacity other than as Trustee hereunder or for
any CS Affiliate.

         SECTION 17. Trustee Not an Affiliate. The Trustee represents that it is
a bank or trust company that is not a CS Affiliate.

         SECTION 18. Compensation; Expenses. Reasonable expenses lawfully
incurred in the administration of the Trustee's duties hereunder shall be
reimbursed to it by CS Securities on behalf of the Holders. During the period of
its services hereunder, the Trustee shall receive a fee from CS Securities as
follows: (i) an initial fee of $4,500, and (ii) thereafter, during the period of
its services hereunder, a fee of $3,000 per annum payable quarterly in arrears.
The provisions of this Section 18 shall survive the termination of this
Agreement.

         SECTION 19. Merger, Etc. Upon any merger, consolidation, reorganization
or dissolution of the Corporation or the sale of all or substantially all of the
assets of the Corporation pursuant to which shares of capital stock or other
voting securities of another

                                       16

<PAGE>

corporation are to be issued in payment or exchange for or upon conversion of
Shares and other voting securities, the shares of said other corporation shall
automatically be and become subject to the terms of this Agreement and be held
by the Trustee hereunder in the same manner and upon the same terms as the Trust
Shares, and in such event the Trustee shall issue to the Holders that have
deposited Shares with the Trustee new Trust Certificates in lieu of the old
Trust Certificates for the appropriate number of shares and other voting
securities of such other corporation.

         At the request of any Holder, the Trustee may transfer, sell or
exchange or join with the Holder in such transfer, sale or exchange of Shares
and other voting securities in exchange for shares of another corporation, and
in said event the shares and other voting securities of the other corporation
received by the transferor shall be and become subject to this Agreement and be
held by the Trustee hereunder in the same manner as the Trust Shares.

         SECTION 20. Notices. All notices, reports, statements and other
communications directed to the Trustee from the Corporation, other than
communications pertaining solely to the voting of the Trust Shares, shall be
forwarded promptly by the Trustee to CS Private Equity, CS Securities and each
Holder. All notices, notices of election and other communications required
herein shall be given in writing by overnight courier, telegram or facsimile
transmission and shall be addressed, or sent, to the appropriate addresses as
set forth beneath the signature of each party hereto (and if to the Corporation,
to 2 Crescent Place, Oceanport, NJ 07757-0900), or at such other address as to
which notice is given in accordance with this Section 20.

         SECTION 21. Indemnity, Etc. The Trustee shall be indemnified by CS
Securities from and against any and all loss, liability, claim, damage and
expense whatsoever (including, but not limited to, any and all expense
whatsoever reasonably incurred in investigating, preparing or defending against
any litigation, commenced or threatened, or any claims whatsoever) (the
"INDEMNIFIED CLAIMS") arising out of or based upon this Agreement or the actions
or failures to act of the Trustee hereunder or thereunder, except to the extent
such loss, liability, claim, damage or expense is caused by or results from the
Trustee's negligence or willful misconduct (as determined by a final and
unappealable order of a court of competent jurisdiction). CS Securities agrees
on behalf of the Holders that it will indemnify and hold harmless the Trustee
from and against any Indemnified Claims. CS Securities' obligation hereunder
shall survive the transfer of all or any portions of its respective shares and
interests, the termination of the voting trust created herein, or the
resignation or removal of the Trustee.

         The Trustee shall be entitled to the prompt reimbursement for its
out-of-pocket expenses (including reasonable attorneys' fees and expenses)
incurred in investigating, preparing or defending against any litigation,
commenced or threatened, arising out of or based upon this Agreement, or the
actions or failures to act of the Trustee hereunder or thereunder, without
regard to the outcome of such litigation; provided, however, that the Trustee
shall be obligated to return any such reimbursement if it is subsequently
determined by a final and unappealable order of a court of competent
jurisdiction that the

                                       17

<PAGE>

Trustee was negligent or engaged in willful misconduct in the matter in
question.

         If a claim under this Section 21 is not paid in full within 30 days
after a written claim has been submitted by the Trustee, the Trustee may at any
time thereafter bring suit to recover the unpaid amount of the claim and, if
successful in whole or in part, the Trustee shall be entitled to be paid also
the expense of prosecuting such claims.

         The Trustee is authorized and empowered to construe this Agreement and
its construction of the same, made in good faith, shall be final, conclusive,
and binding upon all Holders and all other parties interested. The Trustee may,
in its discretion, consult with counsel to be selected and employed by it, and
the reasonable fees and expenses of such counsel shall be an expense for which
the Trustee is entitled to indemnity hereunder.

         The Trustee hereby accepts the trust created hereby and agrees to carry
out the terms and provisions hereof, but assumes no responsibility for the
management of the Corporation or for any action taken by it, by any person
elected as a director of the Corporation or by the Corporation pursuant to any
vote cast or consent given by the Trustee. The Trustee, whether or not acting
upon the advice of counsel, shall incur no liability because of any error of law
or fact, mistake of judgment or any matter or thing done or omitted under this
Agreement, except its own negligence or willful misconduct. Anything done or
suffered in good faith by the Trustee in accordance with the advice of counsel
chosen as indicated above shall be conclusive in favor of the Trustee against
the Holders and any other interested party.

         The Trustee shall not be liable in any event for acts or defaults of
any other trustee or trustees (under this or any other voting trust of the
Corporation's securities) or for acts or defaults of any employee, agent, proxy
or attorney-in-fact of any other trustee or trustees. The Trustee shall be
protected and free from liability in acting upon any notice, request, consent,
certificate, declaration, guarantee, affidavit or other paper or document or
signature reasonably believed by it to be genuine and to have been signed by the
proper party or parties or by the party or parties purporting to have signed the
same.

         No provision of this Agreement shall require the Trustee to expend or
risk its own funds or otherwise incur any financial liability in the performance
of any of its duties hereunder, or in the exercise of any of its rights or
powers, if it shall have reasonable grounds for believing that repayment of such
funds or adequate indemnity against such risk or liability is not reasonably
assured to it.

         SECTION 22. Certain Calculations.

         (a) For all purposes of this Agreement, in determining whether CS
Affiliates will own in the aggregate Capital Stock of the Corporation amounting
to 5% or more of the total voting power of the Voting Stock of the Corporation
then outstanding, (i) shares of Voting Stock underlying Share Equivalents owned
by a CS Affiliate shall be deemed to be outstanding and owned by such CS
Affiliate and (ii) Shares held pursuant to this Agreement shall be excluded.

                                       18

<PAGE>

         (b) For purposes of Sections 10, 11, 14, 15, 18 and 21, a Holder owning
a Trust Certificate representing Share Equivalents shall, in respect of such
ownership, be deemed to be the Holder of a Trust Certificate representing the
number of shares of Common Stock that the Trustee, acting on behalf of such
Holder, may acquire, whether by exercise, conversion, subscription or otherwise,
pursuant to or by reason of ownership of such Shares.

         SECTION 23. Further Assurances. Each of the parties to this Agreement
will execute any and all further documents, agreements and instruments, and take
all such further actions (including the filing and recording of any other
documents), which may be required under any applicable law, or which the Trustee
may reasonably request, to give effect to the Initial Deposit, any deposit of
Shares after the Initial Deposit, the registration of such Trust Shares as
transferred to the trust created herein, the termination of the trust created
herein pursuant to Section 9 of this Agreement and any transfer of Trust Shares
or Shares pursuant to Section 10 or 11 of this Agreement.

         SECTION 24. Counterparts. This Agreement may be executed in multiple
counterparts all of which counterparts together shall constitute one agreement.
Upon execution of this Agreement and the establishment of the voting trust
created herein, the Trustee shall cause a copy of this Agreement to be filed in
the registered office of the Corporation in the State of Delaware and the
Agreement shall be open to inspection in the manner provided for inspection
under the laws of the State of Delaware.

         SECTION 25. Choice of Law. This Agreement is intended by the parties to
be a voting trust agreement under Section 218 of the General Corporation Law of
the State of Delaware and shall be governed and construed in accordance with the
laws of the State of Delaware except that the Trustee's rights and obligations
shall be governed and construed in accordance with the laws of the State of New
York.

         SECTION 26. Bond. The Trustee shall not be required to provide any bond
to secure the performance of its duties hereunder.

         SECTION 27. Reliance. CS Private Equity and each Holder acknowledges
that CS Private Equity and CS Securities will rely on this Agreement in
complying with the federal securities laws. The Trustee acknowledges that CS
Private Equity and CS Securities will rely on the Trustee abiding by the terms
of this Agreement, including, without limitation, that (x) the Trustee will
exercise independent judgment in voting the shares and will not consult with any
CS Affiliate regarding the voting of such shares and (y) the Trustee will not
consent to any amendment or waiver of this Agreement prohibited by Section 28
hereof whether or not such amendment or waiver is approved by each of the
parties hereto and all of the Holders.

         SECTION 28. Amendments and Waivers. This Agreement may not be amended
or waived in any material respect unless CS Securities shall have delivered to
the Trustee an opinion of independent nationally recognized counsel who are
experts in matters involving the federal securities law, that, immediately after
such amendment or waiver,

                                       19

<PAGE>

CS Securities, together with its affiliates, should not be an "affiliate" of the
Corporation within the meaning of Rule 144 under the Securities Act. Subject to
the foregoing, this Agreement may be amended with the written consent of the
Trustee, the Corporation, CS Private Equity, CS Securities and the Holders of
Trust Certificates representing the beneficial interest in fifty percent (50%)
or more of the Shares then deposited hereunder, and if so amended then this
Agreement (as so amended) shall bind all of the parties hereto and all of the
Holders.

         SECTION 29. Benefits and Assignment. Nothing in this Agreement,
expressed or implied, shall give or be construed to give any person, other than
the Corporation and the parties hereto and their successors and assigns, any
legal claim under any covenant, condition or provision hereof, all the
covenants, conditions and provisions contained in this Agreement being for the
sole benefit of the Corporation and the parties hereto and their successors and
assigns. No party may assign any of its rights or obligations under this
Agreement without the written consent of all the other parties (except as
provided in Section 14), which consent may be withheld in the sole discretion of
the party whose consent is sought.

         SECTION 30. Severability. In case any provision in this Agreement shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

                                       20

<PAGE>

         EXECUTED as of the date and year first above written.

                                     WELLS FARGO BANK, N.A., as Trustee,

                                     By:_______________________________________
                                          Name:
                                          Title:
                                          Address:    6th St. & Marquette Ave.
                                                      MAC N9303-110
                                                      Minneapolis, MN  55479
                                          Attention:
                                          Telephone:
                                          Facsimile:

                                       21

<PAGE>


                                 CREDIT SUISSE FIRST BOSTON
                                 PRIVATE EQUITY, INC.,

                                 By:  ______________________
                                      Name:
                                      Title:
                                      Address:   11 Madison Avenue
                                                 New York, NY 10010
                                      Attention:
                                      Telephone: (212) 325-2000
                                      Facsimile:

                                       22

<PAGE>

                                 CREDIT SUISSE SECURITIES (USA) LLC,

                                 By:  ______________________
                                      Name:
                                      Title:
                                      Address:   11 Madison Avenue
                                                 New York, NY 10010
                                      Attention:
                                      Telephone: (212) 325-2000
                                      Facsimile:

                                       23

<PAGE>

                                  SPROUT CEO FUND, L.P.,

                                  By:     DLJ Capital Corporation
                                  Its:    General Partner

                                  By:________________________________
                                        Name:
                                        Title:
                                        Address:   c/o Sprout Group
                                                   11 Madison Avenue
                                                   13th Floor
                                                   New York, NY 10010
                                        Attention:
                                        Telephone: (212) 325-2000
                                        Facsimile:


                                  DLJ CAPITAL CORPORATION,

                                  By:________________________________
                                     Name:
                                     Title:
                                     Address:   c/o Sprout Group
                                                11 Madison Avenue
                                                13th Floor
                                                New York, NY 10010
                                     Attention:
                                     Telephone: (212) 325-2000
                                     Facsimile:

                                       24


<PAGE>

                                  SPROUT GROWTH II, L.P.,

                                  By:     DLJ Capital Corporation
                                  Its:    Managing General Partner

                                  By:  ______________________
                                       Name:
                                       Title:
                                       Address:   c/o Sprout Group
                                                  11 Madison Avenue
                                                  13th Floor
                                                  New York, NY 10010
                                       Attention:
                                       Telephone: (212) 325-2000
                                       Facsimile:


                                  SPROUT CAPITAL VII, L.P.,

                                  By:     DLJ Capital Corporation
                                  Its:    Managing General Partner

                                  By:  ______________________
                                       Name:
                                       Title:
                                       Address:   c/o Sprout Group
                                                  11 Madison Avenue
                                                  13th Floor
                                                  New York, NY 10010
                                       Attention:
                                       Telephone: (212) 325-2000
                                       Facsimile:

                                       25


<PAGE>

                                  SPROUT CAPITAL IX, L.P.,

                                  By:     DLJ Capital Corporation
                                  Its:    Managing General Partner

                                  By:  ______________________
                                       Name:
                                       Title:
                                       Address:   c/o Sprout Group
                                                  11 Madison Avenue
                                                  13th Floor
                                                  New York, NY 10010
                                       Attention:
                                       Telephone: (212) 325-2000
                                       Facsimile:


                                  SPROUT ENTREPRENEURS' FUND, L.P.,

                                  By:     DLJ Capital Corporation
                                  Its:    General Partner

                                  By:  ______________________
                                       Name:
                                       Title:
                                       Address:   c/o Sprout Group
                                                  11 Madison Avenue
                                                  13th Floor
                                                  New York, NY 10010
                                       Attention:
                                       Telephone: (212) 325-2000
                                       Facsimile:

                                       26


<PAGE>

                                  SPROUT IX PLAN INVESTORS, L.P.,

                                  By:     DLJ LBO Plans Management Corp. II
                                  Its:    General Partner

                                  By:  ______________________
                                       Name:
                                       Title:
                                       Address:   c/o Sprout Group
                                                  11 Madison Avenue
                                                  13th Floor
                                                  New York, NY 10010
                                       Attention:
                                       Telephone: (212) 325-2000
                                       Facsimile:

                                       27

<PAGE>

                                  DLJ MERCHANT BANKING PARTNERS, L.P.,

                                  By:     DLJ Merchant Banking Partners, Inc.
                                  Its:    General Partner

                                  By:  ______________________
                                       Name:
                                       Title:
                                       Address:   11 Madison Avenue
                                                  New York, NY 10010
                                       Attention:
                                       Telephone: (212) 325-2000
                                       Facsimile:


                                  DLJ INTERNATIONAL PARTNERS, C.V.,

                                  By:   DLJ Merchant Banking Partners, Inc.
                                  Its:  General Partner

                                  By:  ______________________
                                       Name:
                                       Title:
                                       Address:   11 Madison Avenue
                                                  New York, NY 10010
                                       Attention:
                                       Telephone: (212) 325-2000
                                       Facsimile:

                                       28


<PAGE>

                                  DLJ OFFSHORE PARTNERS, C.V.,

                                  By:     DLJ Merchant Banking Partners, Inc.
                                  Its:    General Partner

                                  By:  ______________________
                                       Name:
                                       Title:
                                       Address:   11 Madison Avenue
                                                  New York, NY 10010
                                       Attention:
                                       Telephone: (212) 325-2000
                                       Facsimile:


                                  DLJMB FUNDING, INC.,

                                  By:  ______________________
                                       Name:
                                       Title:
                                       Address:    11 Madison Avenue
                                                   New York, NY 10010
                                       Attention:
                                       Telephone:  (212) 325-2000
                                       Facsimile:


                                  DLJ FIRST ESC, L.P.,

                                  By:     DLJ LBO Plans Management
                                  Its:    General Partner

                                  By:  ______________________
                                       Name:
                                       Title:
                                       Address:   11 Madison Avenue
                                                  New York, NY 10010
                                       Attention:
                                       Telephone: (212) 325-2000
                                       Facsimile:

                                       29

<PAGE>

                                  DLJ ESC II, L.P.,

                                  By:     DLJ LBO Plans Management
                                  Its:    General Partner

                                  By:  ______________________
                                       Name:
                                       Title:
                                       Address:   11 Madison Avenue
                                                  New York, NY 10010
                                       Attention:
                                       Telephone: (212) 325-2000
                                       Facsimile:

                                       30

<PAGE>

                                   SCHEDULE A
                                 Initial Deposit


<TABLE>
<CAPTION>
                                           COMMON STOCK
                                           ------------

<S>                                        <C>
Sprout CEO Fund, L.P.                            23,281
DLJ Capital Corporation                         337,123
Sprout Growth II, L.P.                        1,640,940
Sprout Capital VII, L.P.                      2,007,123
Sprout Capital IX, L.P.                       1,373,746
Sprout Entrepreneurs' Fund, L.P.                  5,414
Sprout IX Plan Investors, L.P.                   63,440
DLJ Merchant Banking Partners, L.P.           4,195,158
DLJ International Partners, C.V.              2,054,114
DLJ Offshore Partners, C.V.                     109,692
DLJMB Funding, Inc.                           1,648,872
DLJ First ESC, L.P.                           1,107,132
DLJ ESC II, L.P.                                 11,824
</TABLE>

                                      A-1


<PAGE>

                                   SCHEDULE B

                              TRANSFER INSTRUCTIONS


SPROUT CEO FUND, L.P.

            All payments shall be made by check mailed to:

                        Sprout Group
                        11 Madison Avenue
                        13th Floor
                        New York, NY 10010
                        Attention:  Amy M. Yeung

DLJ CAPITAL CORPORATION

            All payments shall be made by check mailed to:

                        Sprout Group
                        11 Madison Avenue
                        13th Floor
                        New York, NY 10010
                        Attention:  Amy M. Yeung

SPROUT GROWTH II, L.P.

            All payments shall be made by check mailed to:

                        Sprout Group
                        11 Madison Avenue
                        13th Floor
                        New York, NY 10010
                        Attention:  Amy M. Yeung

SPROUT CAPITAL VII, L.P.

            All payments shall be made by check mailed to:

                        Sprout Group
                        11 Madison Avenue
                        13th Floor
                        New York, NY 10010
                        Attention:  Amy M. Yeung

                                      B-1

<PAGE>


SPROUT CAPITAL IX, L.P.

            All payments shall be made by check mailed to:

                        Sprout Group
                        11 Madison Avenue
                        13th Floor
                        New York, NY 10010
                        Attention:  Amy M. Yeung

SPROUT ENTREPRENEURS' FUND, L.P.

            All payments shall be made by check mailed to:

                        Sprout Group
                        11 Madison Avenue
                        13th Floor
                        New York, NY 10010
                        Attention:  Amy M. Yeung

SPROUT IX PLAN INVESTORS, L.P.

            All payments shall be made by check mailed to:

                        Sprout Group
                        11 Madison Avenue
                        13th Floor
                        New York, NY 10010
                        Attention:  Amy M. Yeung

DLJ MERCHANT BANKING PARTNERS, L.P.

            All payments shall be made by check mailed to:

                        DLJ Merchant Banking Partners, L.P.
                        11 Madison Avenue
                        13th Floor
                        New York, NY 10010
                        Attention:  Kenneth Lohsen

DLJ INTERNATIONAL PARTNERS, C.V.

            All payments shall be made by check mailed to:

                        DLJ International Partners, C.V.
                        11 Madison Avenue
                        13th Floor
                        New York, NY 10010
                        Attention:  Kenneth Lohsen

                                      B-2

<PAGE>


DLJ OFFSHORE PARTNERS, C.V.

            All payments shall be made by check mailed to:

                        DLJ Offshore Partners, C.V.
                        11 Madison Avenue
                        13th Floor
                        New York, NY 10010
                        Attention:  Kenneth Lohsen

DLJMB FUNDING, INC.

            All payments shall be made by check mailed to:

                        DLJMB Funding, Inc.
                        11 Madison Avenue
                        13th Floor
                        New York, NY 10010
                        Attention:  Kenneth Lohsen

DLJ FIRST ESC, L.P.

            All payments shall be made by check mailed to:

                        DLJ First ESC, L.P.
                        11 Madison Avenue
                        13th Floor
                        New York, NY 10010
                        Attention:  Kenneth Lohsen

DLJ ESC II, L.P.

            All payments shall be made by check mailed to:

                        DLJ ESC II., L.P.
                        11 Madison Avenue
                        13th Floor
                        New York, NY 10010
                        Attention:  Kenneth Lohsen


                                       B-3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>9
<FILENAME>y24537a5exv10w2.txt
<DESCRIPTION>EX-10.2: 1996 STOCK OPTION PLAN
<TEXT>
<PAGE>
                                                                    EXHIBIT 10.2

                             COMMVAULT SYSTEMS, INC.
                             1996 STOCK OPTION PLAN

     CommVault Systems, Inc. (the "Company"), a Delaware corporation, has
adopted the 1996 Stock Option Plan (the "Plan"), effective May 22, 1996, for the
benefit of its eligible employees.

     The purposes of the Plan are as follows:

     (1)  To provide an additional incentive for employees to further the
          growth, development, and financial success of the Company by
          personally benefiting through the ownership of options with respect to
          Company stock which recognize such growth, development, and financial
          success.

     (2)  To enable the Company to obtain and retain the services of employees
          considered essential to the long range success of the Company by
          offering them an opportunity to own options with respect to stock in
          the Company which will reflect the growth, development, and financial
          success of the Company.

                                    ARTICLE 1

                                   DEFINITIONS

     Wherever the following terms are used in this Plan, they shall have the
meanings specified below, unless the context clearly indicates otherwise. The
singular pronoun shall include the plural, where the context so indicates.

SECTION 1.1 -- AFFILIATE

     "Affiliate" with respect to any Person shall mean (a) any other Person
directly or indirectly controlling, controlled by, or under common control with,
such Person, where "control" shall have the meaning given such term under Rule
405 of the Securities Act, and (b) where such Person is an individual, the
spouse and lineal ascendants and descendants of such Person, and any sibling of
any of such individuals.

SECTION 1.2 -- BOARD

     "Board" shall mean the Board of Directors of the Company.

SECTION 1.3 -- CODE

     "Code" shall mean the Internal Revenue Code of 1986, as amended.

SECTION 1.4 -- COMMITTEE


<PAGE>

     "Committee" shall mean the Compensation Committee of the Board or another
committee, or a subcommittee of the Board, appointed as provided in Section 6.1;
provided, however, that in the event no such Committee is elected, the Board
shall have all duties and powers reserved to the Committee, and the term
"Committee" as used herein shall refer to the Board.

SECTION 1.5 -- COMMON STOCK

     "Common Stock" shall mean the common stock, par value $0.01 per share, of
the Company.

SECTION 1.6 -- COMPANY

     "Company" shall mean CommVault Systems, Inc., a Delaware corporation.

SECTION 1.7 -- COMPANY SALE

     "Company Sale" shall mean (a) the sale, lease, or other transfer of all or
substantially all of the assets of the Company to any person or group (as such
term is used in Section 13(d)(3) of the Securities Exchange Act of 1934, as
amended) other than the DLJ Entities and their Affiliates; (b) the merger or
consolidation of the Company with or into another entity or the merger of
another entity into the company or any subsidiary thereof with the effect that
immediately after such transaction the stockholders of the Company immediately
prior to such transaction (or their Affiliates) hold less than 20% of the total
voting power of all securities generally entitled to vote in the election of
directors, managers, or trustees of the entity surviving such merger of
consolidation; or (c) other than pursuant to a public offering of securities,
the acquisition by any person (as defined above) other than the DLJ Entities and
its Affiliates of all 80% or more of the voting power of all securities of the
Company generally entitled to vote in the election of directors of the Company.

SECTION 1.8 -- DIRECTOR

     "Director" shall mean a member of the Board.

SECTION 1.9 -- DLJ ENTITY

     "DLJ Entity" shall mean each of 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
VI, L.P., Sprout CEO Fund L.P., and, to the extent any of such entities shall
have transferred any of their Common Stock to any Permitted Transferees, their
Permitted Transferees.

SECTION 1.10 -- EMPLOYEE

     "Employee" shall mean any officer or other employee (as defined in
accordance with Section 3401(c) of the Code) of the Company, or of any
corporation which is a Subsidiary.

SECTION 1.11 -- EXCHANGE ACT

     "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

SECTION 1.12 -- FAIR MARKET VALUE


<PAGE>

      "Fair Market Value" of a share of Common Stock as of a given date shall be

      (a)   the fair market value of a share of Common Stock as established by
            the Committee acting in good faith, or

      (b)   if Common Stock is publicly traded on an exchange or quoted on
            NASDAQ or any over-the-counter system, the average over a period of
            21 days consisting of the date as of which the Fair Market Value is
            being determined and the 20 consecutive trading days prior to such
            date of

            (i)   the mean between the closing prices of the sales of such
                  Common Stock as of such dates on all national securities
                  exchanges on which such securities may at the time be listed,
                  or if there have been no sales on any such exchange on any
                  such dates.

            (ii)  the mean between the highest bid and lowest asked prices on
                  all such exchanges at the close of business on such dates, or,
                  if Common Stock is not listed on an exchange but is quoted in
                  the NASDAQ system.

            (iii) the mean between the representative bid and asked prices
                  quoted in the NASDAQ System as of 4:00 P.M., New York time on
                  such dates, or, if Common Stock is not quoted in the NASDAQ
                  System.

            (iv)  the mean between the highest bid and lowest asked prices on
                  such dates in the domestic over-the-counter market as reported
                  by the National Quotation Bureau Incorporated, or any similar
                  successor organization.

SECTION 1.13 -- OPTIONS

      "Options" shall mean the stock options granted under Article III of this
Plan, each of which shall be with respect to one share of Common Stock, subject
to adjustment as provided herein. Options shall be non-qualified stock options
not intended to comply with the requirements for "incentive stock options" as
set forth at Section 422 of the Code.

SECTION 1.14 -- OPTION AGREEMENT

      "Option Agreement" shall mean an agreement between the Company and an
Optionee that sets forth the terms, conditions, and limitations applicable to an
Option.

SECTION 1.15 -- OPTIONEE

"Optionee" shall mean an Employee granted an Option under this Plan.

SECTION 1.16 -- PARENT CORPORATION

      "Parent Corporation" shall mean any corporation in an unbroken chain of
corporations ending with the Company if each of the corporations other than the
Company then owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain.


<PAGE>

SECTION 1.17 -- PERMITTED TRANSFEREES

      "Permitted Transferees" shall have the meaning assigned such term in the
Stockholders Agreement.

SECTION 1.18 -- PERSON

      "Person" shall mean an individual, corporation, partnership, association,
trust or other entity or organization, including a government or political
subdivision or an agency or instrumentality thereof.

SECTION 1.19 -- PLAN

      "Plan" shall mean the CommVault Systems, Inc. 1996 Stock Option Plan.

SECTION 1.20 -- QDRO

      "QDRO" shall mean a qualified domestic relations order as defined by the
Code or Title I of the Employee Retirement Income Security Act of 1974, as
amended, or the rules thereunder.

SECTION 1.21 -- RULE 16b-3

      "Rule 16b-3" shall mean that certain Rule 16b-3 under the Exchange Act, as
such Rule may be amended from time to time.

SECTION 1.22 -- SECURITIES ACT

      "Securities Act" shall mean the Securities Act of 1933, as amended.

SECTION 1.23 -- STOCKHOLDER

      "Stockholder" shall mean a "Stockholder" as defined in the Stockholders
Agreement.

SECTION 1.24 -- STOCKHOLDERS AGREEMENT

      "Stockholders Agreement" shall mean that certain Stockholders Agreement
dated as of May 22, 1996 among the Company's Stockholders, as amended.

SECTION 1.25 -- SUBSIDIARY

      "Subsidiary" shall mean any corporation in an unbroken chain of
corporations beginning with the Company if each such corporation, other than the
last corporation in the unbroken chain, then owns stock possessing 50% or more
of the total combined voting power of all classes of stock in one of the other
corporations in such chain.

SECTION 1.26 -- TERMINATION OF EMPLOYMENT
<PAGE>

      "Termination of Employment" shall mean the time when the employee-employer
relationship between an Optionee and the Company or any Parent Corporation or
Subsidiary is terminated or otherwise ceases for any reason, with or without
cause, including, but not by way of limitation, a termination by resignation,
discharge, death, disability or retirement; but excluding (a) terminations where
there is a simultaneous reemployment or continuing employment of an Optionee by
the Company or any Parent Corporation or Subsidiary, (b) at the discretion of
the Committee, terminations which result in a temporary severance of the
employee-employer relationship, and (c) at the discretion of the Committee,
terminations which are followed by the simultaneous establishment of a
consulting relationship by the Company or any Parent Corporation or Subsidiary
with the former employee. The Committee, in its discretion, shall determine the
effect of all matters and questions relating to Termination of Employment,
including, but not by way of limitation, the question of whether a Termination
of Employment resulted from a discharge for cause, and all questions of whether
a particular leave of absence constitutes Termination of Employment.
Notwithstanding any and unrestricted right to terminate an Employee's employment
at any time for any reason whatsoever, with or without cause, except to the
extent expressly provided otherwise in writing.

                                   ARTICLE II

                             SHARES SUBJECT TO PLAN

SECTION 2.1 -- SHARES SUBJECT TO PLAN

      The shares of stock subject to Options shall be Common Stock. The
aggregate number of such shares which may be issued upon exercise of such
Options under the Plan, shall not exceed 1,800,000. The shares of Common Stock
issuable upon exercise of Options may be either previously authorized but
unissued shares or treasury shares.

SECTION 2.2 -- ADD-BACK OF OPTIONS

      If any Option under this Plan expires or is cancelled without having been
fully exercised, or is exercised in whole or in part for cash as permitted by
this Plan, the number of shares subject to such Option but as to which such
Option was not exercised prior to its expiration, cancellation or exercise may
again be optioned hereunder. Shares of Common Stock which are delivered by the
Optionee or withheld by the Company upon the exercise of any Option in payment
of the exercise price thereof or withholding taxes may again be optioned
hereunder. Furthermore, any shares subject to Options which are adjusted
pursuant to Section 7.3 and become exercisable with respect to shares of stock
of another corporation shall be considered cancelled and may again be optioned
hereunder, subject to the limitations of Section 2.1.

                                   ARTICLE III

                               GRANTING OF OPTIONS

SECTION 3.1 -- ELIGIBILITY
<PAGE>

      Any employee selected by the Committee pursuant to Section 3.2(a)(i) shall
be eligible to be granted an Option.

SECTION 3.2 -- GRANTING OF OPTIONS

      (a)   The Committee shall from time to time, in its discretion, and
            subject to applicable limitations of this Plan:

                  (i)   Select from among the Employees (including Employees who
                        have previously received Options under this Plan) such
                        of them as in its opinion should be granted Options;

                  (ii)  Determine the number of Options granted to the selected
                        Employees; and

                  (iii) Determine the terms and conditions of such Options
                        consistent with this Plan.

      (b)   Upon the selection of an Employee to be granted an Option, the
            Committee shall instruct the Secretary of the Company to issue the
            Option and may impose such conditions on the grant of the Option, as
            it deems appropriate. Without limiting the generality of the
            preceding sentence, the Committee may, in its discretion and on such
            terms as it deems appropriate, require as a condition on the grant
            of an Option to an Employee that the Employee surrender for
            cancellation some or all of the unexercised Options which have been
            previously granted to him or her under this Plan or otherwise. An
            Option, the grant of which is conditioned upon such surrender, may
            have an option price lower (or higher) that the exercise price of
            such surrendered Option, may cover the same (or a lesser or greater)
            number of shares as such surrendered Option, may contain such other
            terms as the Committee deems appropriate, and shall be exercisable
            in accordance with its terms, without regard to the number of
            shares, price, exercise period, or any other term or condition of
            such surrendered Option.

                                   ARTICLE IV

                                TERMS OF OPTIONS

SECTION 4.1 -- OPTION AGREEMENT

      Each Option shall be evidenced by a written Option Agreement, which shall
be executed by the Optionee and an authorized officer of the Company and which
shall contain such terms and conditions as the Committee shall determine,
consistent with this Plan.

SECTION 4.2 -- EXERCISE PRICE

      The exercise price per share of the shares subject to each Option shall be
set by the Committee and specified in the Option Agreement; provided, however,
that such price shall be no less than the par value of a share of Common Stock,
unless otherwise permitted by applicable state law.

SECTION 4.3 -- OPTION TERM
<PAGE>

                  The term of an Option shall be set by the Committee in its
            discretion. The Committee may extend the term of any outstanding
            Option in connection with any Termination of Employment of the
            Optionee, or amend any other term or condition of such Option
            relating to such a termination.

SECTION 4.4 -- OPTION VESTING

      (a)   The period during which the right to exercise an Option in whole or
            in part vests in the Optionee shall be set by the Committee and the
            Committee may determine that an Option may not be exercised in whole
            or in part for a specified period after it is granted; provided,
            however, that, unless the Committee otherwise provides in the terms
            of the Option Agreement or otherwise, no Option shall be exercisable
            by any Optionee who is then subject to Section 16 of the Exchange
            Act within the period ending six months and one day after the date
            the Option is granted. At any time after grant of an Option, the
            Committee may, in its sole discretion and subject to whatever terms
            and conditions it selects, accelerate the period during which an
            Option vests.

      (b)   No portion of an Option which is unexercisable at Termination of
            Employment, shall thereafter become exercisable, except as may be
            otherwise provided by the Committee either in the Option Agreement
            or by action of the Committee following the grant of the Option.

SECTION 4.5 -- CONSIDERATION TO THE COMPANY

      In consideration of the granting of an Option, the Optionee shall agree,
in the written Option Agreement, to render faithful and efficient services to
the Company or a Parent Corporation or a Subsidiary of the Company, with such
duties and responsibilities as such employer shall from time to time prescribe.
Nothing in this Plan or in any Option Agreement hereunder shall confer upon any
Optionee any right to continue in the employ of the Company, any Parent
Corporation or any Subsidiary or shall interfere with or restrict in any way the
rights of the Company, any Parent Corporation, or any Subsidiary, which are
hereby expressly reserved, to discharge any Optionee at any time for any reason
whatsoever, with or without cause.

                                    ARTICLE V

                               EXERCISE OF OPTIONS

SECTION 5.1 -- PARTIAL EXERCISE

      An exercisable Option may be exercised in whole or in part. However, an
Option shall not be exercisable with respect to fractional shares and the
Committee may require that, by the terms of the Option Agreement, a partial
exercise be with respect to a minimum number of shares.

SECTION 5.2 -- MANNER OF EXERCISE

      All or a portion of an exercisable Option shall be deemed exercised upon
delivery of all of the following to the Secretary of the Company or his or her
office:
<PAGE>

      (a)   A written notice complying with the applicable rules established by
            the Committee stating that the Option or a portion thereof, is
            exercised. The notice shall be signed by the Optionee or other
            person then entitled to exercise the Option or such portion; and

      (b)   Such representations and documents as the Committee, in its
            discretion, deems necessary or advisable to effect compliance with
            all applicable provisions of the Securities Act, as amended, and any
            other federal or state securities laws or regulations. The Committee
            may, in its discretion, also take whatever additional actions it
            deems appropriate to effect such compliance including, without
            limitation, placing legends on share certificates and issuing
            stop-transfer notices to agents and registrars; and

      (c)   Full cash payment to the Secretary of the Company for the shares
            with respect to which the Option, or portion thereof, is exercised.
            However, the Committee may in its discretion (i) allow a delay in
            payment up to thirty (30) days from the date the Option, or portion
            thereof, is exercised; (ii) allow payment, in whole or in part,
            through the delivery of shares of Common Stock owned by the
            Optionee, duly endorsed for transfer to the Company with a Fair
            Market Value on the date of delivery equal to the aggregate exercise
            price of the Option or exercised portion thereof, (iii) subject to
            the timing requirements of Section 5.3, allow payment, in whole or
            in part, through the surrender of shares of Common Stock then
            issuable upon exercise of the Option having a Fair Market Value on
            the date of Option exercise equal to the aggregate exercise price of
            the Option or exercised portion hereof; (iv) allow payment, in whole
            or in part, through the delivery of property of any kind which
            constitutes good and valuable consideration; (v) allow payment, in
            whole or in part, through the delivery of a full recourse promissory
            note bearing interest (at no less than such rate as shall then
            preclude the imputation of interest under the Code) and payable upon
            such terms as may be prescribed by the Committee, or (vi) allow
            payment through any combination of the consideration provide in the
            foregoing subparagraphs (ii), (iii), (iv), and (v). In the case of a
            promissory note, the Committee may also prescribe the form of such
            note and the security to be given for such note. The Option may not
            be exercised, however, by delivery of a promissory note or by a loan
            from the Company when or where such loan or other extension of
            credit is prohibited by law; and

      (d)   In the event that the Option shall be exercised pursuant to Section
            7.1 by any person or persons other than the Optionee, appropriate
            proof of the right of such person or persons to exercise the Option.

SECTION 5.3 -- CERTAIN TIMING REQUIREMENTS

      At the discretion of the Committee, shares of Common Stock issuable to the
Optionee upon exercise of the Option may be used to satisfy the Option exercise
price or the tax withholding consequences of such exercise, in the case of
persons subject to Section 16 of the Exchange Act, only (i) during the period
beginning on the third business day following the date of release of the
quarterly or annual summary statement of sales and earnings of the Company and
ending on the twelfth business day following such date or (ii) pursuant to an
irrevocable written election by the Optionee to use shares of Common Stock
issuable to the Optionee upon exercise of the Option to pay all or part of the
Option price or the withholding taxes made at least six months prior to the
payment of such Option price or withholding taxes.


<PAGE>

SECTION 5.4 -- CONDITIONS TO ISSUANCE OF STOCK CERTIFICATES

      The Company shall not be required to issue or deliver any certificate or
certificates for shares of stock purchased upon the exercise of any Option or
portion thereof prior to fulfillment of all of the following conditions:

      (a)   The admission of such shares to listing on all stock exchanges on
            which such class of stock is then listed;

      (b)   The completion of any registration or other qualification of such
            shares under any state or federal law, or under the rulings or
            regulations of the Securities and Exchange Commission or any other
            governmental regulatory body which the Committee shall, in its
            discretion, deem necessary or advisable.

      (c)   The obtaining of any approval or other clearance from any state or
            federal governmental agency which the Committee shall, in its
            discretion, determine to be necessary or advisable;

      (d)   The lapse of such reasonable period of time following the exercise
            of the Option as the Committee may establish from time to time for
            reasons of administrative convenience; and

      (e)   The receipt by the Company of full payment for such shares,
            including payment of any applicable withholding tax.

SECTION 5.5 -- RIGHTS AS STOCKHOLDERS

      The holders of Options shall not be, nor have any of the rights or
privileges of, stockholders of the Company in respect of any shares purchasable
upon the exercise of any Option (or portion thereof) unless and until
certificates representing such shares have been issued by the Company to such
holders.

SECTION 5.6 -- OWNERSHIP AND TRANSFER RESTRICTIONS

      The Committee, in its discretion, may impose such restrictions on the
ownership and transferability of the shares purchasable upon the exercise of an
Option, as it deems appropriate. Any such restriction shall be set forth in the
respective Option Agreement or another agreement among the Company and the
holder of such shares and may be referred to on the certificates evidencing such
shares.

                                   ARTICLE VI

                                 ADMINISTRATION

SECTION 6.1 -- COMPENSATION COMMITTEE

      The Compensation Committee (or another committee or a subcommittee of the
Board assuming the functions of the Committee under this Plan) shall consist of
two or more Directors appointed by and holding office at the pleasure of the
Board. Appointment of Committee members shall be effective upon


<PAGE>

acceptance of appointment. Committee members may resign at any time by
delivering written notice to the Board. Vacancies in the Committee may be filled
by the Board.

SECTION 6.2 -- DUTIES AND POWERS OF COMMITTEE

      It shall be the duty of the Committee to conduct the general
administration of this Plan in accordance with its provisions. The Committee
shall have the power to interpret this Plan and the agreements pursuant to which
Options are granted, and to adopt such rules for the administration,
interpretation, and application of this Plan as are consistent therewith and to
interpret, amend or revoke any such rules. Any such grant under this Plan need
not be the same with respect to each Optionee. In its discretion, the Board may
at any time and from time to time, exercise any and all rights and duties of the
Committee under this Plan, except with respect to matters which under Rule 16b-3
or any regulations or rules issued there under, as applicable to the Company,
are required to be determined in the sole discretion of the Committee.

SECTION 6.3 -- MAJORITY RULE: UNANIMOUS WRITTEN CONSENT

      The Committee shall act by a majority of its members in attendance at a
meeting at which a quorum is present or by a memorandum or other written
instrument signed by all members of the Committee.

SECTION 6.4 -- PROFESSIONAL ASSISTANCE:  GOOD FAITH ACTIONS

      All expenses and liabilities, which members of the Committee incur in
connection with the administration of this Plan, shall be borne by the Company.
The Committee may, with the approval of the Board, employ attorneys,
consultants, accountants, appraisers, brokers, or other persons. The Committee,
the Company and the Company's officers and Directors shall be entitled to rely
upon the advice, opinions or valuations of any such persons. All actions taken
and all interpretations and determinations made by the Committee or the Board in
good faith shall be final and binding upon all Optionees, the Company, and all
other interested persons. No members of the Committee or Board shall be
personally liable for any action, determination, or interpretation made in good
faith with respect to this Plan or Options, and all members of the Committee and
the Board shall be fully protected by the Company in respect of any such action,
determination, or interpretation.

                                   ARTICLE VII

                            MISCELLANEOUS PROVISIONS

SECTION 7.1 -- NOT TRANSFERABLE

      (a)   Options granted under this Plan may not be sold, pledged, assigned,
            or transferred in any manner other than by will or the laws of
            descent and distribution or pursuant to a QDRO, unless and until
            such Options have been exercised, or the shares underlying such
            Options have been issued, and all restrictions applicable to such
            shares have lapsed. No Option or interest or right therein shall be
            liable for the debts, contracts, or engagements of the Optionee or
            his or her successors in interest or shall be subject to disposition
            by transfer, alienation, anticipation, pledge, encumbrance,
            assignment or any other means whether such disposition be voluntary
            or involuntary or by operation of law by judgment, levy, attachment,
            garnishment, or any other legal or equitable proceedings (including
<PAGE>

            bankruptcy), and any attempted disposition thereof shall be null and
            void and of no effect, except to the extent that such disposition is
            permitted by the preceding sentence.

      (b)   During the lifetime of the Optionee, only he or she may exercise an
            Option (or any portion thereof) granted to him or her under the
            Plan, unless it has been disposed of pursuant to a QDRO. After the
            death of the Optionee, any exercisable portion of an Option may,
            prior to the time when such portion becomes unexercisable under the
            Plan or the applicable Option Agreement or other agreement, be
            exercised by his or her personal representative or by any person
            empowered to do so under the deceased Optionee's will or under the
            then applicable laws of descent and distribution.

SECTION 7.2 -- AMENDMENT, SUSPENSION, OR TERMINATION OF THIS PLAN

      Except as otherwise provided in this Section 7.2, this Plan may be wholly
or partially amended or otherwise modified, suspended, or terminated at any time
or from time to time by the Board or the Committee. However, no action of the
Committee or Board that would require stockholder approval as a matter of
applicable law, regulation or rule shall be effective unless such stockholder
approval is obtained. No amendment, suspension or termination of this Plan
shall, without the consent of the holder of Options, alter or impair any rights
or obligations under any Options theretofore granted, unless the Option
Agreement itself otherwise expressly so provides. No Options may be granted
during any period of suspension or after termination of this Plan.

SECTION 7.3 -- CHANGES IN COMMON STOCK OR ASSETS OF THE COMPANY, ACQUISITION, OR
               LIQUIDATION OF THE COMPANY AND OTHER CORPORATE EVENTS

      (a)   Subject to Section 7.3(d), in the event that the Committee
            determines that any dividend or other distribution (whether in the
            form of cash, Common Stock, other securities, or other property),
            recapitalization, reclassification, stock split, reverse stock
            split, reorganization, merger, consolidation, split-up, spin-off,
            combination, repurchase, liquidation, dissolution, or sale,
            transfer, exchange or other disposition of all or substantially all
            of the assets of the Company (including, but not limited to a
            Company Sale), or exchange of Common Stock or other securities of
            the Company, issuance of warrants or other rights to purchase Common
            Stock or other securities of the Company, or other similar corporate
            transaction or event, in the Committee's sole discretion affects the
            Common Stock such that an adjustment is determined by the Committee
            to be appropriate in order to prevent dilution or enlargement of the
            benefits or potential benefits intended to be made available under
            the Plan or with respect to an Option, then the Committee shall, in
            such manner as it may deem equitable, adjust any or all of

                  (i)   The number and kind of shares of Common Stock (or other
                        securities or property) with respect to which Options
                        may be granted under the Plan (including, but not
                        limited to, adjustments of the limitations in Section
                        2.1 on the maximum number and kind of shares which may
                        be issued).

                  (ii)  The number and kind of shares of Common Stock (or other
                        securities or property) subject to outstanding Options,
                        and

                  (iii) The exercise price with respect to any Option.
<PAGE>

      (b)   Subject to Section 7.3(d), in the event of any Company Sale or other
            transaction or event described in Section 7.3(a) or any unusual or
            nonrecurring transactions or events affecting the Company, any
            affiliate of the Company, or the financial statements of the Company
            or any affiliate, or of changes in applicable laws, regulations, or
            accounting principles, the Committee, in its discretion, is hereby
            authorized to take any one or more of the following actions whenever
            the Committee determines that such action is appropriate in order to
            prevent dilution or enlargement of the benefits or potential
            benefits intended to be made available under the Plan or with
            respect to any Option, to facilitate such transactions or events or
            to give effect to such changes in laws, regulations, or principles:

                  (i)   In its sole discretion, and on such terms and conditions
                        as it deems appropriate, the Committee may provide,
                        either by the terms of the Option Agreement or by action
                        taken prior to the occurrence of such transaction or
                        event and either automatically or upon the Optionee's
                        request, for either the purchase of any such Option for
                        an amount of cash equal to the amount that could have
                        been attained upon the exercise of such Option or
                        realization of the Optionee's rights had such Option
                        been currently exercisable or the replacement of such
                        Option with other rights or property selected by the
                        Committee in its sole discretion;

                  (ii)  In its sole discretion, the Committee may provide,
                        either by the terms of such Option or by action taken
                        prior to the occurrence of such transaction or event
                        that it cannot be exercised after such event;


                  (iii) In its sole discretion, and on such terms and conditions
                        as it deems appropriate, the Committee may provide,
                        either by the terms of such Option or by action taken
                        prior to the occurrence of such transaction or event,
                        that for a specified period of time prior to such
                        transaction or event, such Option shall be exercisable
                        as to all shares covered thereby, notwithstanding
                        anything to the contrary in (i) Section 4.4 or (ii) the
                        provisions of such Option Agreement,

                  (iv)  In its sole discretion, and on such terms and conditions
                        as it deems appropriate, the Committee may provide,
                        either by the terms of such Option or by action taken
                        prior to the occurrence of such transaction or event,
                        that upon such event, such Option be assumed by the
                        successor or survivor corporation, or a parent or
                        subsidiary thereof, or shall be substituted for by
                        similar Options, rights or awards covering the stock of
                        the successor or survivor corporation, or a parent or
                        subsidiary thereof, with appropriate adjustments as to
                        the number and kind of shares and prices; and

                  (v)   In its sole discretion, and on such terms and conditions
                        as it deems appropriate, the Committee may make
                        adjustments in the number and typed of shares of Common
                        Stock (or other securities or property) subject to
                        outstanding Options and/or in the terms and conditions
                        of


<PAGE>

                        (including the exercise price), and the criteria
                        included in, outstanding Options and Options which may
                        be granted in the future.

      (c)   Subject to Sections 7.3(d) and 7.8, the Committee may, in its
            discretion, include such further provisions and limitations in any
            Option Agreement as it may deem equitable and in the best interests
            of the Company.

      (d)   No adjustment or action described in this Section 7.3 or in any
            other provision of the Plan shall be authorized to the extent that
            such adjustment or action would result in short-swing profits
            liability under Section 16 of the Exchange Act or violate the
            exemptive conditions of Rule 16b-3, unless the Committee determines
            that the Option is not to comply with such exemptive conditions.

      (e)   The number of shares of Common Stock subject to any Option shall
            always be rounded to the next whole number.

SECTION 7.4 -- APPROVAL OF PLAN BY STOCKHOLDERS

      This Plan will be submitted for the approval of the Company's stockholders
within twelve months after the date of the Board's initial adoption of this
Plan. Options may be granted prior to such stockholder approval, provided that
such Options shall not be exercisable prior to the time when this Plan is
approved by the stockholders; and provided further that if such approval has not
been obtained at the end of said twelve-month period, all Options previously
granted under this Plan shall thereupon be cancelled and become null and void.

SECTION 7.5 -- TAX WITHHOLDING

      The Company shall be entitled to the required payment in cash or deduction
from other compensation payable to each Optionee of any sums required by
federal, state or local tax law to be withheld with respect to the issuance,
vesting or exercise of any Option. Subject to the timing requirements of Section
5.3, the Committee may in its discretion and in satisfaction of the foregoing
requirements allow such Optionee to elect to have the Company withhold shares of
Common Stock otherwise issuable under such Option (or allow the return of shares
of Common Stock) having a Fair Market Value equal to the sums required to be
withheld.

SECTION 7.6 -- LOANS

      The Committee may, in its discretion, extend one or more loans to
Employees in connection with the exercise or receipt of an Option granted under
this Plan. The terms and conditions of any such loan shall be set by the
Committee.

SECTION 7.7 -- FORFEITURE PROVISIONS

      Pursuant to its general authority to determine the terms and conditions
applicable to Options under the Plan, the Committee shall have the right (to the
extent consistent with the applicable exemptive conditions of Rule 16b-3) to
provide, in the terms of Option Agreements made under the Plan, or to require
the recipient to agree by separate written instrument, that (a) any proceeds,
gains or other economic benefit actually or constructively received by the
recipient upon any receipt or exercise of an Option, or upon the receipt or
resale of any Common Stock underlying such Option, must be paid to the Company,
and (b) the Option shall terminate and any unexercised portion of such Option
(whether or not


<PAGE>

vested) shall be forfeited, if (i) a Termination of Employment occurs prior to a
specified date, or within a specified time period following receipt or exercise
of the Option, or (ii) the recipient at any time, or during a specified time
period, engages in any activity in competition with the Company, or which is
inimical, contrary, or harmful to the interests of the Company, as further
defined by the Committee.

SECTION 7.8 -- LIMITATIONS APPLICABLE TO SECTION 16 PERSONS

      Notwithstanding any other provision of this Plan, the Plan and any Option
granted to any individual who is then subject to Section 16 of the Exchange Act
shall be subject to any additional limitations set forth in any applicable
exemptive rule under Section 16 of the Exchange Act (including any amendment to
Rule 16b-3) that are requirements for the application of such exemptive rule,
and, to the extent permitted by applicable law, this Plan and Options granted
hereunder shall be deemed amended to the extent necessary to conform to such
applicable exemptive rule.

SECTION 7.9 -- EFFECT OF PLAN UPON OPTIONS AND COMPENSATION PLANS

      The adoption of this Plan shall not affect any other compensation or
incentive plans in effect for the Company or any Subsidiary. Nothing in this
Plan shall be construed to limit the right of the Company (i) to establish any
other forms of incentives or compensation for Employees of the Company or any
Subsidiary or (ii) to grant or assume options or other rights otherwise than
under this Plan in connection with any proper corporate purpose including, but
not by way of limitation, the grant or assumption of options in connection with
the acquisition by purchase, lease, merger, consolidation or otherwise of the
business, stock, or assets of any corporation, partnership, firm, or
association.

SECTION 7.10 -- COMPLIANCE WITH LAWS

      This Plan, the granting and vesting of Options under this Plan, and the
issuance and delivery of shares of Common Stock under Options granted hereunder
are subject to compliance with all applicable federal and state laws, rules and
regulations (including, but not limited to, state and federal securities law and
federal margin requirements) and to such approvals by any listing, regulatory,
or governmental authority as may, in the opinion of counsel for the Company, be
necessary or advisable in connection therewith. Any securities delivered under
this Plan shall be subject to such restrictions, and the person acquiring such
securities shall, if requested by the Company, provide such assurances and
representation to the Company as the Company may deem necessary or desirable to
assure compliance with all applicable legal requirements. To the extent
permitted by applicable law, the Plan and Options granted hereunder shall be
deemed amended to the extent necessary to conform to such laws, rules, and
regulations.

SECTION 7.11 -- TITLES

      Titles are provided herein for convenience only and are not to serve as a
basis for interpretation or construction of this Plan.

SECTION 7.12 -- GOVERNING LAW

      This Plan and any agreements hereunder shall be administered, interpreted,
and enforced under the internal laws of the State of New York without regard to
conflicts of laws thereof.
<PAGE>

      I hereby certify that the foregoing Plan was duly adopted by the Board of
Directors of CommVault Systems, Inc. on May 22, 1996.

      Executed on this 22nd day of May, 1996.


                                                        /s/ David H. Ireland
                                                            --------------------
                                                            Secretary



<PAGE>


                               AMENDMENT NO. 1 TO
                           THE COMMVAULT SYSTEMS, INC.
                             1996 STOCK OPTION PLAN

      Pursuant to this Amendment No. 1 to the CommVault Systems, Inc. 1996 Stock
Option Plan (this "Amendment"), CommVault Systems, Inc., a corporation organized
under the laws of the State of Delaware (the "Company"), does hereby amend its
CommVault Systems, Inc. 1996 Stock Option Plan (the "Plan"). The Plan was duly
adopted by the Board of Directors of the Company on May 22, 1996.

      Section 1. Defined Terms. All capitalized terms used but not defined in
this Amendment have the respective meanings ascribed to such terms in the Plan.

      Section 2. Amendments.

            (a) The phrase "and other persons in a position to contribute to the
growth, development and financial success of the Company" is hereby inserted
after the word "employees" in the introductory sentence of the Plan.

            (b) The phrase "and other persons" is hereby inserted after the word
"employees" in paragraph (1) describing the purposes of the Plan.

            (c) The phrase "and other persons" is hereby inserted after the word
"employees" in paragraph (2) describing the purposes of the Plan.

            (d) In Section 1.15, the term "an Employee" is hereby deleted and
replaced with "a Participant."

            (e) In Section 1.26, all references to the word "Optionee" are
hereby deleted and replaced with the term "Employee."

            (f) Following Section 1.26, a new Section 1.27 is hereby added to
read in its entirety:

                  "Section 1.27 -- Participant. Participant shall mean those
            persons eligible to receive Options under the Plan as described in
            Section 3.1 of the Plan."

            (g) In Section 2.1, the number "1,800,000" in the second sentence is
hereby deleted and replaced with the number "9,700,000."

            (h) The following sentence is hereby added after the last sentence
of Section 2.2:

                  "Moreover, any Shares issued to an Optionee as a result of the
            exercise of Options granted pursuant to this Plan which are
            repurchased by the Company may again be optioned hereunder."

            (i) Section 3.1 is hereby deleted in its entirety and the following
is hereby inserted in its stead:
<PAGE>

                  "Section 3.1 - Eligibility. Participants eligible to receive
            Options under the Plan will be Employees and other persons who, in
            the opinion of the Committee, are in a position to make a
            significant contribution to the success of the Company, a Parent or
            any Subsidiaries, including, without limitation, (a) Directors of
            the Company who are not Employees, and (b) consultants and agents of
            the Company, a Parent or any Subsidiary; provided, that such
            consultants and agents are actively engaged in the conduct of the
            business of the Company, a Parent or any Subsidiary."

            (j) In Section 3.2, all references to the word "Employee" are hereby
deleted and replaced with the word "Participant."

            (k) In Section 4.5, the word "employer" in the first sentence is
hereby deleted and replaced with the word "company."

            (l) In Section 7.6, the word "Employees" in the first sentence is
hereby deleted and replaced with the word "Participants."

            (m) In Section 7.7, the following language is hereby inserted at the
end of the last sentence:

                  "or (iii) in the case of a non-employee Director, the
            non-employee Director ceases to be a member of the Board of
            Directors of the Company or (iv) in the case of a consultant or
            agent such consultant or agent is no longer actively engaged in the
            conduct of the business of the Company, a Parent or any Subsidiary."

      Section 3. Effect. Except as amended by this Agreement, the Plan remains
in full force and effect and nothing herein shall affect, or be deemed to be a
waiver of, the other terms and provisions of the Plan.

      Section 4. Reference to and Effect on the Plan. On and after the date
which this Amendment becomes effective, each reference in the Plan to "this
Plan," "hereunder," "hereof" or words of like import referring to the Plan shall
mean and be a reference to the Plan as amended or otherwise modified hereby.



<PAGE>


      I hereby certify that the foregoing Amendment No. 1 to the CommVault
Systems, Inc. 1996 Stock Option Plan was duly adopted by the Board of Directors
of CommVault Systems, Inc. on July 25, 2000 and by written consent of a majority
of the Company's stockholders on August 25, 2000.

Dated:  August 25, 2000


                                            /s/ Louis Miceli
                                            ----------------
                                            Secretary



<PAGE>


                               AMENDMENT NO. 2 TO
                           THE COMMVAULT SYSTEMS, INC.
                             1996 STOCK OPTION PLAN

      Pursuant to this Amendment No. 2 to the CommVault Systems, Inc. 1996 Stock
Option Plan (this "Amendment"), CommVault Systems, Inc., a corporation organized
under the laws of the State of Delaware (the "Company"), does hereby amend its
CommVault Systems, Inc. 1996 Stock Option Plan (the "Plan") and the Amendment
No. 1 to the CommVault Systems, Inc. 1996 Stock Option Plan (the "1st
Amendment"). The Plan was duly adopted by the Board of Directors of the Company
on May 22, 1996. The 1st Amendment was duly adopted by the Board of Directors,
on July 25, 2000, and the Stockholders, on August 25, 2000.

      Section 1. Defined Terms. All capitalized terms used but not defined in
this Amendment have the respective meanings ascribed to such terms in the Plan
and the 1st Amendment.

      Section 2. Amendments. In Section 2.1, the number "9,700,000" in the
second sentence is hereby deleted and replaced with the number "11,700,000."

      Section 3. Effect. Except as amended by this Amendment, the Plan and the
1st Amendment remain in full force and effect and nothing herein shall affect,
or be deemed to be a waiver of, the other terms and provisions of the Plan or
the 1st Amendment.

      Section 4. Reference to and Effect on the Plan. On and after the date
which this Amendment becomes effective, each reference in the Plan, the 1st
Amendment or the 2nd Amendment to "this Plan," "hereunder," "hereof" or words of
like import referring to the Plan, the 1st Amendment or the 2nd Amendment
thereto shall mean and be a reference to the Plan as amended or otherwise
modified hereby.

      I hereby certify that the foregoing Amendment No. 2 to the CommVault
Systems, Inc. 1996 Stock Option Plan was duly adopted by the Board of Directors
of CommVault Systems, Inc. on December 5, 2000.

Dated:  December 19, 2000


                                       /s/ Louis Miceli
                                    -----------------------------------
                                    Secretary

<PAGE>


                               AMENDMENT NO. 3 TO
                           THE COMMVAULT SYSTEMS, INC.
                             1996 STOCK OPTION PLAN

      Pursuant to this Amendment No. 3 to the CommVault Systems, Inc. 1996 Stock
Option Plan (this "Amendment"), CommVault Systems, Inc., a corporation organized
under the laws of the State of Delaware (the "Company"), does hereby amend its
CommVault Systems, Inc. 1996 Stock Option Plan (the "Plan") and Amendment No. 1
to the CommVault Systems, Inc. 1996 Stock Option Plan (the "1st Amendment") and
Amendment No. 2 to the CommVault Systems, Inc. 1996 Stock Option Plan (the "2nd
Amendment"). The Plan was duly adopted by the Board of Directors of the Company
on May 22, 1996. The 1st Amendment was duly adopted by the Board of Directors,
on July 25, 2000, and the Stockholders, on August 25, 2000. The 2nd Amendment
was duly adopted by the Board of Directors, on December 5, 2000.

      Section 1. Defined Terms. All capitalized terms used but not defined in
this Amendment have the respective meanings ascribed to such terms in the Plan,
the 1st Amendment and the 2nd Amendment.

      Section 2. Amendments. In Section 2.1, the number "11,700,000" in the
second sentence is hereby deleted and replaced with the number "12,900,000."

      Section 3. Effect. Except as amended by this Amendment, the Plan, the 1st
Amendment and the 2nd Amendment remain in full force and effect and nothing
herein shall affect, or be deemed to be a waiver of, the other terms and
provisions of the Plan, the 1st Amendment or the 2nd Amendment.

      Section 4. Reference to and Effect on the Plan. On and after the date
which this Amendment becomes effective, each reference in the Plan, the 1st
Amendment, the 2nd Amendment, or the 3rd Amendment to "this Plan," "hereunder,"
"hereof" or words of like import referring to the Plan, the 1st Amendment, the
2nd Amendment, or the 3rd Amendment thereto shall mean and be a reference to the
Plan as amended or otherwise modified hereby.

      I hereby certify that the foregoing Amendment No. 3 to the CommVault
Systems, Inc. 1996 Stock Option Plan was duly adopted by the Board of Directors
of CommVault Systems, Inc. by Unanimous Written Consent on May 3, 2001.

Dated:  May 3, 2001

                                       /s/ Lou Miceli
                                    --------------------------------
                                    Secretary

<PAGE>


                               AMENDMENT NO. 4 TO
                           THE COMMVAULT SYSTEMS, INC.
                             1996 STOCK OPTION PLAN

      Pursuant to this Amendment No. 4 to the CommVault Systems, Inc. 1996 Stock
Option Plan (this "Amendment"), CommVault Systems, Inc., a corporation organized
under the laws of the State of Delaware (the "Company"), does hereby amend its
CommVault Systems, Inc. 1996 Stock Option Plan (the "Plan") and Amendment No. 1
to the CommVault Systems, Inc. 1996 Stock Option Plan (the "1st Amendment"),
Amendment No. 2 to the CommVault Systems, Inc. 1996 Stock Option Plan (the "2nd
Amendment") and Amendment No. 3 to the CommVault Systems, Inc. 1996 Stock Option
Plan (the "3rd Amendment"). The Plan was duly adopted by the Board of Directors
of the Company on May 22, 1996. The 1st Amendment was duly adopted by the Board
of Directors, on July 25, 2000, and the Stockholders, on August 25, 2000. The
2nd Amendment was duly adopted by the Board of Directors on December 5, 2000.
The 3rd Amendment was duly adopted by the Board of Directors on May 3, 2001.

      Section 1. Defined Terms. All capitalized terms used but not defined in
this Amendment have the respective meanings ascribed to such terms in the Plan,
the 1st Amendment, the 2nd Amendment and the 3rd Amendment.

      Section 2. Amendments. In Section 2.1, the number "12,900,000" in the
second sentence is hereby deleted and replaced with the number "14,450,000."

      Section 3. Effect. Except as amended by this Amendment, the Plan, the 1st
Amendment, the 2nd Amendment and the 3rd Amendment remain in full force and
effect and nothing herein shall affect, or be deemed to be a waiver of, the
other terms and provisions of the Plan, the 1st Amendment, the 2nd Amendment or
the 3rd Amendment.

      Section 4. Reference to and Effect on the Plan. On and after the date
which this Amendment becomes effective, each reference in the Plan, the 1st
Amendment, the 2nd Amendment, the 3rd Amendment or this 4th Amendment to "this
plan," "hereunder," "hereof" or words of like import referring to the Plan, the
1st Amendment, the 2nd Amendment, the 3rd Amendment or this 4th Amendment
thereto shall mean and be a reference to the Plan as amended or otherwise
modified hereby.

      I hereby certify that the foregoing Amendment No. 4 to the CommVault
Systems, Inc. 1996 Stock Option Plan was duly adopted by the Board of Directors
of CommVault Systems, Inc. on July 25, 2002.

Dated:  July 25, 2002


                                        /s/ Louis Miceli
                                    -----------------------------------
                                    Louis Miceli
                                    Secretary

<PAGE>


                               AMENDMENT NO. 5 TO
                           THE COMMVAULT SYSTEMS, INC.
                             1996 STOCK OPTION PLAN

      Pursuant to this Amendment No. 5 to the CommVault Systems, Inc. 1996 Stock
Option Plan (this "Amendment"), CommVault Systems, Inc., a corporation organized
under the laws of the State of Delaware (the "Company"), does hereby amend its
CommVault Systems, Inc. 1996 Stock Option Plan (the "Plan") and Amendment No. 1
to the CommVault Systems, Inc. 1996 Stock Option Plan (the "1st Amendment"),
Amendment No. 2 to the CommVault Systems, Inc. 1996 Stock Option Plan (the "2nd
Amendment"), Amendment No. 3 to the CommVault Systems, Inc. 1996 Stock Option
Plan (the "3rd Amendment") and Amendment No. 4 to the CommVault System, Inc.
1996 Stock Option Plan (the "4th Amendment"). The Plan was duly adopted by the
Board of Directors of the Company on May 22, 1996. The 1st Amendment was duly
adopted by the Board of Directors, on July 25, 2000, and the Stockholders, on
August 25, 2000. The 2nd Amendment was duly adopted by the Board of Directors on
December 5, 2000. The 3rd Amendment was duly adopted by the Board of Directors
on May 3, 2001. The 4th Amendment was duly adopted by the Board of Directors on
July 25, 2002.

      Section 1. Defined Terms. All capitalized terms used but not defined in
this Amendment have the respective meanings ascribed to such terms in the Plan,
the 1st Amendment, the 2nd Amendment, the 3rd Amendment and the 4th Amendment.

      Section 2. Amendments. In Section 2.1, the number "14,450,000" in the
second sentence is hereby deleted and replaced with the number "15,950,000."

      Section 3. Effect. Except as amended by this Amendment, the Plan, the 1st
Amendment, the 2nd Amendment, the 3rd Amendment and the 4th Amendment remain in
full force and effect and nothing herein shall affect, or be deemed to be a
waiver of, the other terms and provisions of the Plan, the 1st Amendment, the
2nd Amendment, the 3rd Amendment or the 4th Amendment.

      Section 4. Reference to and Effect on the Plan. On and after the date
which this Amendment becomes effective, each reference in the Plan, the 1st
Amendment, the 2nd Amendment, the 3rd Amendment, the 4th Amendment or this 5th
Amendment to "this plan," "hereunder," "hereof" or words of like import
referring to the Plan, the 1st Amendment, the 2nd Amendment, the 3rd Amendment,
the 4th Amendment or this 5th Amendment thereto shall mean and be a reference to
the Plan as amended or otherwise modified hereby.

      I hereby certify that the foregoing Amendment No. 5 to the CommVault
Systems, Inc. 1996 Stock Option Plan was duly adopted by the Board of Directors
of CommVault Systems, Inc. on May 1, 2003.

Dated:  May 1, 2003
<PAGE>
                              /s/ Louis Miceli
                                  -----------------------------
                                  Louis Miceli
                                  Secretary



<PAGE>


                                  AMENDMENT TO
                           THE COMMVAULT SYSTEMS, INC.
                             1996 STOCK OPTION PLAN

      Pursuant to this Amendment to the CommVault Systems, Inc. 1996 Stock
Option Plan (this "Amendment"), CommVault Systems, Inc., a corporation organized
under the laws of the State of Delaware (the "Company"), does hereby amend its
CommVault Systems, Inc. 1996 Stock Option Plan, as such plan has previously been
amended (the "Plan").

      Section 1. Defined Terms. All capitalized terms used but not defined in
this Amendment have the respective meanings ascribed to such terms in the Plan.

      Section 2. Amendments. In the preamble of the Plan, the purpose of the
plan shall be hereby deleted and replaced with the following:

      (1)   Purpose. The CommVault Systems, Inc. 1996 Stock Option Plan (the
            "Plan") has been established by CommVault Systems, Inc. (the
            "Company") to (i) attract and retain persons eligible to participate
            in the Plan; (ii) motivate Participants, by means of appropriate
            incentives, to achieve long-range goals; (iii) provide incentive
            compensation opportunities that are competitive with those of other
            similar companies; and (iv) further align Participants' interests
            with those of the Company's other stockholders through compensation
            that is based on the Company's common stock; and thereby promote the
            long-term financial interest of the Company and the Subsidiaries,
            including the growth in value of the Company's equity and
            enhancement of long-term stockholder return.

      (2)   Participation. Subject to the terms and conditions of the Plan, the
            Committee shall determine and designate, from time to time, from
            among the Eligible Individuals (including transferees of Eligible
            Individuals to the extent the transfer is permitted by the Plan or
            the Option Agreement), those persons who will be granted one or more
            Options under the Plan, and thereby become "Participants" or
            "Optionees" in the Plan.

In addition, the following definition of Eligible Individuals shall be added to
Article I of the Plan, and the term "Employee" shall be replaced with the term
Eligible Individual wherever it is appropriate that such change be made, in
order to comply with the intent of this Amendment:

      Eligible Individual. The term "Eligible Individual" shall mean any
      employee of the Company or a Subsidiary and any consultant, director, or
      other person providing services to the Company or a Subsidiary. An Option
      may be granted to an individual, in connection with hiring, retention or
      otherwise, prior to the date the individual first performs services for
      the Company or the Subsidiaries, provided that such Options

<PAGE>

      shall not become vested prior to the date the individual first performs
      such services.

      Section 3. Effect. Except as amended by this Amendment, the Plan shall
remain in full force and effect and nothing herein shall affect, or be deemed to
be a waiver of, the other terms and provisions of the Plan.

      Section 4. Reference to and Effect on the Plan. On and after the date
which this Amendment becomes effective, each reference in the Plan or this
Amendment to "this plan," "hereunder," "hereof" or words of like import
referring to the Plan or this Amendment shall mean and be a reference to the
Plan as amended or otherwise modified hereby.

Dated:  December__, 2004

                                          /s/ Louis Miceli
                                              --------------------
                                              Secretary




<PAGE>


                               AMENDMENT NO. 7 TO
                           THE COMMVAULT SYSTEMS, INC.
                             1996 STOCK OPTION PLAN

      Pursuant to this Amendment No. 7 to the CommVault Systems, Inc. 1996 Stock
Option Plan (this "Amendment"), CommVault Systems, Inc., a corporation organized
under the laws of the State of Delaware (the "Company"), does hereby amend its
CommVault Systems, Inc. 1996 Stock Option Plan, as such plan has previously been
amended (the "Plan").

      Section 1. Defined Terms. All capitalized terms used but not defined in
this Amendment have the respective meanings ascribed to such terms in the Plan.

      Section 2. Amendments. In Section 2.1 of the Plan, the number of options
authorized under the plan in the second sentence is hereby replaced with the
number "19,410,000."

      Section 3. Effect. Except as amended by this Amendment, the Plan shall
remain in full force and effect and nothing herein shall affect, or be deemed to
be a waiver of, the other terms and provisions of the Plan.

      Section 4. Reference to and Effect on the Plan. On and after the date
which this Amendment becomes effective, each reference in the Plan or this
Amendment to "this plan," "hereunder," "hereof" or words of like import
referring to the Plan or this Amendment shall mean and be a reference to the
Plan as amended or otherwise modified hereby.

Dated:  January 29, 2005

                                                     /s/ Warren Mondschein
                                                         --------------------
                                                         Secretary



<PAGE>


                               AMENDMENT NO. 8 TO
                           THE COMMVAULT SYSTEMS, INC.
                             1996 STOCK OPTION PLAN

      Pursuant to this Amendment No. 7 to the CommVault Systems, Inc. 1996 Stock
Option Plan (this "Amendment"), CommVault Systems, Inc., a corporation organized
under the laws of the State of Delaware (the "Company"), does hereby amend its
CommVault Systems, Inc. 1996 Stock Option Plan, as such plan has previously been
amended (the "Plan").

      Section 1. Defined Terms. All capitalized terms used but not defined in
this Amendment have the respective meanings ascribed to such terms in the Plan.

      Section 2. Amendments. In Section 2.1 of the Plan, the number of options
authorized under the plan in the second sentence is hereby replaced with the
number "22,410,000."

      Section 3. Effect. Except as amended by this Amendment, the Plan shall
remain in full force and effect and nothing herein shall affect, or be deemed to
be a waiver of, the other terms and provisions of the Plan.

      Section 4. Reference to and Effect on the Plan. On and after the date
which this Amendment becomes effective, each reference in the Plan or this
Amendment to "this plan," "hereunder," "hereof" or words of like import
referring to the Plan or this Amendment shall mean and be a reference to the
Plan as amended or otherwise modified hereby.

Dated:  May 5, 2005

                                                       /s/ Warren Mondschein
                                                           --------------------
                                                           Secretary



<PAGE>


                               AMENDMENT NO. 9 TO
                           THE COMMVAULT SYSTEMS, INC.
                             1996 STOCK OPTION PLAN

      Pursuant to this Amendment No. 9 to the CommVault Systems, Inc. 1996 Stock
Option Plan (this "Amendment"), CommVault Systems, Inc., a corporation organized
under the laws of the State of Delaware (the "Company"), does hereby amend its
CommVault Systems, Inc. 1996 Stock Option Plan, as such plan has previously been
amended (the "Plan").

      Section 1. Defined Terms. All capitalized terms used but not defined in
this Amendment have the respective meanings ascribed to such terms in the Plan.

      Section 2. Amendments. In Section 2.1 of the Plan, the number of options
authorized under the plan in the second sentence is hereby replaced with the
number "23,410,000."

      Section 3. Effect. Except as amended by this Amendment, the Plan shall
remain in full force and effect and nothing herein shall affect, or be deemed to
be a waiver of, the other terms and provisions of the Plan.

      Section 4. Reference to and Effect on the Plan. On and after the date
which this Amendment becomes effective, each reference in the Plan or this
Amendment to "this plan," "hereunder," "hereof" or words of like import
referring to the Plan or this Amendment shall mean and be a reference to the
Plan as amended or otherwise modified hereby.

Dated:  January 27, 2006


                                                       /s/ Warren Mondschein
                                                           --------------------
                                                           Secretary

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>10
<FILENAME>y24537a5exv10w3.txt
<DESCRIPTION>EX-10.3: FORM OF 2006 LONG-TERM STOCK INCENTIVE PLAN
<TEXT>
<PAGE>
                                                                    EXHIBIT 10.3


                             COMMVAULT SYSTEMS, INC.
                         LONG-TERM STOCK INCENTIVE PLAN

                          Mayer, Brown, Rowe & Maw LLP
                                Chicago, Illinois


<PAGE>


                             COMMVAULT SYSTEMS, INC.
                         LONG-TERM STOCK INCENTIVE PLAN

                             COMMVAULT SYSTEMS, INC.

                                   Certificate

      I,___________________, ______________ of CommVault Systems, Inc., having
in my custody and possession the corporate records of said corporation, do
hereby certify that attached hereto is a true and correct copy of the CommVault
Systems, Inc. Long-Term Stock Incentive Plan as currently in effect.

      WITNESS my hand this ___ day of ____________, 2006.


                                             ___________________________________
                                             As Aforesaid


<PAGE>


                             COMMVAULT SYSTEMS, INC.
                         LONG-TERM STOCK INCENTIVE PLAN

                                    Section 1
                                     GENERAL

1.1      Purpose. The CommVault Systems, Inc. Long-Term Stock Incentive Plan
         (the "Plan") has been established by CommVault Systems, Inc. (the
         "Company") to (i) attract and retain persons eligible to participate in
         the Plan; (ii) motivate Participants, by means of appropriate
         incentives, to achieve long-range goals; (iii) provide incentive
         compensation opportunities that are competitive with those of other
         similar companies; and (iv) further align Participants' interests with
         those of the Company's other stockholders through compensation that is
         based on the Company's common stock; and thereby promote the long-term
         financial interest of the Company and the Subsidiaries, including the
         growth in value of the Company's equity and enhancement of long-term
         stockholder return.

1.2      Participation. Subject to the terms and conditions of the Plan, the
         Committee shall determine and designate, from time to time, from among
         the Eligible Individuals (including transferees of Eligible Individuals
         to the extent the transfer is permitted by the Plan and the applicable
         Award Agreement), those persons who will be granted one or more Awards
         under the Plan, and thereby become "Participants" in the Plan.

1.3      Operation, Administration, and Definitions. The operation and
         administration of the Plan, including the Awards made under the Plan,
         shall be subject to the provisions of Section 4 (relating to operation
         and administration). Capitalized terms in the Plan shall be defined as
         set forth in the Plan (including the definition provisions of Section
         8).

                                    Section 2
                                OPTIONS AND SARS

2.1      Definitions.

         (a)      The grant of an "Option" entitles the Participant to purchase
                  shares of Stock at an Exercise Price established by the
                  Committee. Any Option granted under this Section 2 may be
                  either an incentive stock option (an "ISO") or a non-qualified
                  option (an "NQO"), as determined in the discretion of the
                  Committee. An "ISO" is an Option that is intended to satisfy
                  the requirements applicable to an "incentive stock option"
                  described in section 422(b) of the Code. An "NQO" is an Option
                  that is not intended to be an "incentive stock option" as that
                  term is described in section 422(b) of the Code.

         (b)      A stock appreciation right (an "SAR") entitles the Participant
                  to receive, in cash or Stock (as determined in accordance with
                  subsection 2.5), value equal to (or otherwise based on) the
                  excess of: (a) the Fair Market Value of a specified number of
                  shares of Stock at the time of exercise; over (b) an Exercise
                  Price established by the Committee.


<PAGE>


2.2      Exercise Price. The "Exercise Price" of each Option and SAR granted
         under this Section 2 shall be established by the Committee or shall be
         determined by a method established by the Committee at the time the
         Option or SAR is granted; provided that, the Exercise Price shall not
         be less than 100% of the Fair Market Value of a share of Stock on the
         date of grant; and further provided that the Exercise Price for an
         Option or SAR with respect to a share of Stock shall not be less than
         the par value of a share of Stock.

2.3      Exercise. An Option and an SAR shall be exercisable in accordance with
         such terms and conditions and during such periods as may be established
         by the Committee.

2.4      Payment of Option Exercise Price. The payment of the Exercise Price of
         an Option granted under this Section 2 shall be subject to the
         following:

         (a)      Subject to the following provisions of this subsection 2.4,
                  the full Exercise Price for shares of Stock purchased upon the
                  exercise of any Option shall be paid at the time of such
                  exercise (except that, in the case of an exercise arrangement
                  approved by the Committee and described in paragraph 2.4(c),
                  payment may be made as soon as practicable after the
                  exercise).

         (b)      The Exercise Price shall be payable in cash or by tendering,
                  by either actual delivery of shares or by attestation, shares
                  of Stock valued at Fair Market Value as of the day of
                  exercise, or in any combination thereof, as determined by the
                  Committee. Except as otherwise provided by the Committee,
                  payments made with shares of Stock shall be limited to shares
                  held by the Participant for not less than six months prior to
                  the payment date.

         (c)      The Committee may permit a Participant to elect to pay the
                  Exercise Price upon the exercise of an Option by irrevocably
                  authorizing a third party to sell shares of Stock (or a
                  sufficient portion of the shares) acquired upon exercise of
                  the Option and remit to the Company a sufficient portion of
                  the sale proceeds to pay the entire Exercise Price and any tax
                  withholding resulting from such exercise.

         (d)      The Committee may permit a Participant to elect to pay the
                  Exercise Price upon the exercise of an Option by delivery of a
                  promissory note containing such terms as the Committee shall
                  establish.

2.5      Settlement of Award. Settlement of Options and SARs is subject to
         subsection 4.7.

                                    Section 3
                               OTHER STOCK AWARDS

3.1      Definitions.

         (a)      A "Bonus Stock" Award is a grant of shares of Stock in return
                  for previously performed services, or in return for the
                  Participant surrendering other compensation that may be due,
                  or in return for amounts paid by the Participant.


                                       2
<PAGE>


         (b)      A "Stock Unit" Award is the grant of a right to receive shares
                  of Stock in the future.

         (c)      A "Performance Share" Award is a grant of a right to receive
                  shares of Stock or Stock Units which is contingent on the
                  achievement of performance or other objectives during a
                  specified period.

         (d)      A "Restricted Stock" Award is a grant of shares of Stock, and
                  a "Restricted Stock Unit" Award is the grant of a right to
                  receive shares of Stock in the future, with such shares of
                  Stock or right to future delivery of such shares of Stock
                  subject to a risk of forfeiture or other restrictions that
                  will lapse upon the achievement of one or more goals relating
                  to completion of service by the Participant, or achievement of
                  performance or other objectives, as determined by the
                  Committee.

3.2      Restrictions on Awards. Each Bonus Stock Award, Stock Unit Award,
         Performance Share Award, Restricted Stock Award and Restricted Stock
         Unit Award shall be subject to such conditions, restrictions and
         contingencies as the Committee shall be subject to the following:

         (a)      Any such Award shall be subject to such conditions,
                  restrictions and contingencies as the Committee shall
                  determine.

         (b)      The Committee may designate whether any such Award being
                  granted to any Participant is intended to be
                  "performance-based compensation" as that term is used in
                  section 162(m) of the Code. Any such Awards designated as
                  intended to be "performance-based compensation" shall be
                  conditioned on the achievement of one or more Performance
                  Measures, to the extent required by Code section 162(m). The
                  Performance Measures established by the Committee may be with
                  respect to corporate performance, operating group or sub-group
                  performance, individual company performance, other group or
                  individual performance, or division performance, may be
                  measured gross or net and may be on a total or per share
                  basis. The Performance Measures that may be used by the
                  Committee for such Awards shall be based on any one or more of
                  the following, as selected by the Committee: earnings (e.g.,
                  earnings before income taxes, or "EBIT"; earnings before
                  income taxes, depreciation and amortization, or "EBITDA";
                  earnings per share, or "EPS"), financial return ratios (e.g.,
                  return on investment, or "ROI"; return on invested capital, or
                  "ROIC"; return on equity, or "ROE"), revenue, operating or net
                  cash flows, total shareholder return, market share, operating
                  income or net income, debt load reduction, expense management,
                  stock price and strategic business objectives, consisting of
                  one or more objectives based on meeting specific cost targets,
                  business expansion goals and goals relating to acquisitions or
                  divestitures. For Awards under this Section 3 intended to be
                  "performance-based compensation," the grant of the Awards and
                  the establishment of the Performance Measures shall be made
                  during the period required under Code section 162(m).


                                       3
<PAGE>


                                    Section 4
                          OPERATION AND ADMINISTRATION

4.1      Effective Date. Subject to the approval of the stockholders of the
         Company, the Plan shall be effective as of the completion of an initial
         public offering of the Stock (the "Effective Date"); provided, however,
         that to the extent that Awards are granted under the Plan prior to its
         approval by stockholders, the Awards shall be contingent on approval of
         the Plan by the stockholders of the Company. The Plan shall be
         unlimited in duration and, in the event of Plan termination, shall
         remain in effect as long as any Awards under it are outstanding;
         provided, however, that no Awards may be granted under the Plan after
         the ten-year anniversary of the Effective Date (except for Awards
         granted pursuant to commitments entered into prior to such ten-year
         anniversary).

4.2      Shares Subject to Plan. The shares of Stock for which Awards may be
         granted under the Plan shall be subject to the following:

         (a)      The shares of Stock with respect to which Awards may be made
                  under the Plan shall be shares currently authorized but
                  unissued or currently held or, to the extent permitted by
                  applicable law, subsequently acquired by the Company as
                  treasury shares, including shares purchased in the open market
                  or in private transactions.

         (b)      Subject to the following provisions of this subsection 4.2,
                  the maximum number of shares of Stock that may be delivered to
                  Participants and their beneficiaries under the Plan shall be
                  equal to 6,000,000 shares of Stock, plus, if on April 1 of any
                  year in which the Plan is in effect the number of shares of
                  Stock with respect to which Awards may be granted is less than
                  five percent (5%) of the number of outstanding shares of Stock
                  on such date, an annual increase (determined as of April 1 of
                  each year) of an amount of shares such that the total number
                  of shares available for Awards under the Plan is equal to five
                  percent (5%) of the number of outstanding shares of Stock on
                  such date.

         (c)      To the extent provided by the Committee, any Award may be
                  settled in cash rather than Stock. To the extent any shares of
                  Stock covered by an Award are not delivered to a Participant
                  or beneficiary because the Award is forfeited or canceled, or
                  the shares of Stock are not delivered because the Award is
                  settled in cash or used to satisfy the applicable tax
                  withholding obligation, such shares shall not be deemed to
                  have been delivered for purposes of determining the maximum
                  number of shares of Stock available for delivery under the
                  Plan.

         (d)      If the exercise price of any stock option granted under the
                  Plan is satisfied by tendering shares of Stock to the Company
                  (by either actual delivery or by attestation), only the number
                  of shares of Stock issued net of the shares of Stock tendered
                  shall be deemed delivered for purposes of determining the
                  maximum number of shares of Stock available for delivery under
                  the Plan.

         (e)      Subject to paragraph 4.2(f), the following additional maximums
                  are imposed under the Plan:


                                       4
<PAGE>


                  (i)      The maximum number of shares of Stock that may be
                           issued pursuant to Options intended to be ISOs shall
                           be 25,000,000 shares during the duration of the Plan.

                  (ii)     The maximum number of shares that may be covered by
                           Awards granted to any one individual pursuant to
                           Section 2 (relating to Options and SARs) shall be
                           25,000,000 shares during the duration of the Plan. If
                           an Option is in tandem with an SAR, such that the
                           exercise of the Option or SAR with respect to a share
                           of Stock cancels the tandem SAR or Option right,
                           respectively, with respect to such share, the tandem
                           Option and SAR rights with respect to each share of
                           Stock shall be counted as covering but one share of
                           Stock for purposes of applying the limitations of
                           this paragraph (ii).

                  (iii)    For Stock Unit Awards, Performance Share Awards,
                           Restricted Stock Awards or Restricted Unit Awards
                           that are intended to be "performance-based
                           compensation" (as that term is used for purposes of
                           Code section 162(m)), no more than 25,000,000 shares
                           of Stock may be subject to such Awards granted to any
                           one individual during duration of the Plan
                           (regardless of when such shares are deliverable) and
                           if such Awards are settable in cash, no more than
                           $1,000,000 may be subject to such Awards granted to
                           any individual during any one-calendar-year period
                           (regardless of when such amounts are deliverable.

         (f)      In the event of a corporate transaction involving the Company
                  (including, without limitation, any stock dividend, stock
                  split, extraordinary cash dividend, recapitalization,
                  reorganization, merger, consolidation, split-up, spin-off,
                  combination or exchange of shares), the Committee may adjust
                  Awards to preserve the benefits or potential benefits of the
                  Awards. Action by the Committee may include: (i) adjustment of
                  the number and kind of shares which may be delivered under the
                  Plan; (ii) adjustment of the number and kind of shares subject
                  to outstanding Awards; (iii) adjustment of the Exercise Price
                  of outstanding Options and SARs; and (iv) any other
                  adjustments that the Committee determines to be equitable.

4.3      General Restrictions. Delivery of shares of Stock or other amounts
         under the Plan shall be subject to the following:

         (a)      Notwithstanding any other provision of the Plan, the Company
                  shall have no liability to deliver any shares of Stock under
                  the Plan or make any other distribution of benefits under the
                  Plan unless such delivery or distribution would comply with
                  all applicable laws (including, without limitation, the
                  requirements of the Securities Act of 1933, and the applicable
                  requirements of any securities exchange or similar entity.

         (b)      To the extent that the Plan provides for issuance of stock
                  certificates to reflect the issuance of shares of Stock, the
                  issuance may be effected on a non-certificated


                                       5
<PAGE>

                  basis, to the extent not prohibited by applicable law or the
                  applicable rules of any stock exchange.

4.4      Tax Withholding. All distributions under the Plan are subject to
         withholding of all applicable taxes, and the Committee may condition
         the delivery of any shares or other benefits under the Plan on
         satisfaction of the applicable withholding obligations. The Committee,
         in its discretion, and subject to such requirements as the Committee
         may impose prior to the occurrence of such withholding, may permit such
         withholding obligations to be satisfied through (a) cash payment by the
         Participant, (b) through the surrender of shares of Stock which the
         Participant already owns (provided, however, that to the extent shares
         described in this paragraph (b) are used to satisfy more than the
         minimum statutory withholding obligation, as described below, then,
         except as otherwise provided by the Committee, payments made with
         shares of Stock in accordance with this paragraph (b) above shall be
         limited to shares held by the Participant for not less than six months
         prior to the payment date), or (c) through the surrender of shares of
         Stock to which the Participant is otherwise entitled under the Plan;
         provided, however, that such shares under this paragraph (c) may be
         used to satisfy not more than the Company's minimum statutory
         withholding obligation (based on minimum statutory withholding rates
         for Federal and state tax purposes, including payroll taxes, that are
         applicable to such supplemental taxable income).

4.5      Grant and Use of Awards. In the discretion of the Committee, a
         Participant may be granted any Award permitted under the provisions of
         the Plan, and more than one Award may be granted to a Participant.
         Awards may be granted as alternatives to or replacement of awards
         granted or outstanding under the Plan, or any other plan or arrangement
         of the Company or a Subsidiary (including a plan or arrangement of a
         business or entity, all or a portion of which is acquired by the
         Company or a Subsidiary). Subject to the overall limitation on the
         number of shares of Stock that may be delivered under the Plan, the
         Committee may use available shares of Stock as the form of payment for
         compensation, grants or rights earned or due under any other
         compensation plans or arrangements of the Company or a Subsidiary,
         including the plans and arrangements of the Company or a Subsidiary
         assumed in business combinations.

4.6      Dividends and Dividend Equivalents. An Award (including without
         limitation an Option or SAR Award) may provide the Participant with the
         right to receive dividend payments or dividend equivalent payments with
         respect to Stock subject to the Award (both before and after the Stock
         subject to the Award is earned, vested, or acquired), which payments
         may be either made currently or credited to an account for the
         Participant, and may be settled in cash or Stock, as determined by the
         Committee. Any such settlements, and any such crediting of dividends or
         dividend equivalents or reinvestment in shares of Stock, may be subject
         to such conditions, restrictions and contingencies as the Committee
         shall establish, including the reinvestment of such credited amounts in
         Stock equivalents.

4.7      Settlement of Awards. The obligation to make payments and distributions
         with respect to Awards may be satisfied through cash payments, the
         delivery of shares of Stock, the granting of replacement Awards, or
         combination thereof as the Committee shall determine. Satisfaction of
         any such obligations under an Award, which is sometimes


                                       6
<PAGE>

         referred to as "settlement" of the Award, may be subject to such
         conditions, restrictions and contingencies as the Committee shall
         determine. The Committee may permit or require the deferral of any
         Award payment, subject to such rules and procedures as it may
         establish, which may include provisions for the payment or crediting of
         interest or dividend equivalents, and may include converting such
         credits into deferred Stock equivalents. Each Subsidiary shall be
         liable for payment of cash due under the Plan with respect to any
         Participant to the extent that such benefits are attributable to the
         services rendered for that Subsidiary by the Participant. Any disputes
         relating to liability of a Subsidiary for cash payments shall be
         resolved by the Committee.

4.8      Transferability. Except as otherwise provided by the Committee, Awards
         under the Plan are not transferable except as designated by the
         Participant by will or by the laws of descent and distribution.

4.9      Form and Time of Elections. Unless otherwise specified herein, each
         election required or permitted to be made by any Participant or other
         person entitled to benefits under the Plan, and any permitted
         modification, or revocation thereof, shall be in writing filed with the
         Committee at such times, in such form, and subject to such restrictions
         and limitations, not inconsistent with the terms of the Plan, as the
         Committee shall require.

4.10     Agreement With Company. An Award under the Plan shall be subject to
         such terms and conditions, not inconsistent with the Plan, as the
         Committee shall, in its sole discretion, prescribe. The terms and
         conditions of any Award to any Participant shall be reflected in such
         form of written document as is determined by the Committee. A copy of
         such document shall be provided to the Participant, and the Committee
         may, but need not require that the Participant sign a copy of such
         document. Such document is referred to in the Plan as an "Award
         Agreement" regardless of whether any Participant signature is required.

4.11     Action by Company or Subsidiary. Any action required or permitted to be
         taken by the Company or any Subsidiary shall be by resolution of its
         board of directors, or by action of one or more members of the board
         (including a committee of the board) who are duly authorized to act for
         the board, or (except to the extent prohibited by applicable law or
         applicable rules of any stock exchange) by a duly authorized officer of
         such company.

4.12     Gender and Number. Where the context admits, words in any gender shall
         include any other gender, words in the singular shall include the
         plural and the plural shall include the singular.

4.13     Limitation of Implied Rights.

         (a)      Neither a Participant nor any other person shall, by reason of
                  participation in the Plan, acquire any right in or title to
                  any assets, funds or property of the Company or any Subsidiary
                  whatsoever, including, without limitation, any specific funds,
                  assets, or other property which the Company or any Subsidiary,
                  in its sole discretion, may set aside in anticipation of a
                  liability under the Plan. A Participant shall have only a
                  contractual right to the Stock or amounts, if any,


                                       7
<PAGE>

                  payable under the Plan, unsecured by any assets of the Company
                  or any Subsidiary, and nothing contained in the Plan shall
                  constitute a guarantee that the assets of the Company or any
                  Subsidiary shall be sufficient to pay any benefits to any
                  person.

         (b)      The Plan does not constitute a contract of employment, and
                  selection as a Participant will not give any participating
                  employee or other individual the right to be retained in the
                  employ of the Company or any Subsidiary or the right to
                  continue to provide services to the Company or any Subsidiary,
                  nor any right or claim to any benefit under the Plan, unless
                  such right or claim has specifically accrued under the terms
                  of the Plan. Except as otherwise provided in the Plan, no
                  Award under the Plan shall confer upon the holder thereof any
                  rights as a stockholder of the Company prior to the date on
                  which the individual fulfills all conditions for receipt of
                  such rights.

4.14     Evidence. Evidence required of anyone under the Plan may be by
         certificate, affidavit, document or other information which the person
         acting on it considers pertinent and reliable, and signed, made or
         presented by the proper party or parties.

                                    Section 5
                                CHANGE IN CONTROL

         Subject to the provisions of paragraph 4.2(f) (relating to the
adjustment of shares), and except as otherwise provided in the Plan or the Award
Agreement reflecting the applicable Award, (a) upon a Change in Control that is
a merger or consolidation pursuant to which the Company is the surviving
corporation (other than a merger or consolidation pursuant to which the Company
survives but pursuant to which a majority of its outstanding shares of Stock are
converted into securities of another corporation or entity or are exchanged for
other consideration), any Option granted hereunder shall pertain and apply to
the securities which a holder of the number of shares of Stock then subject to
the Option would have been entitled to receive, and (b) upon a Change in Control
that is a dissolution or liquidation of the Company or a merger or consolidation
pursuant to which the Company is not the surviving corporation or pursuant to
which a majority of its outstanding shares of Stock are so converted or
exchanged, every Option hereunder shall terminate; provided, however, that if
any dissolution, liquidation, merger or consolidation described in paragraph (b)
is contemplated, the Company shall either arrange for any corporation succeeding
to the business or assets of the Company to issue to the Participant replacement
awards (which, in the case of ISOs, shall satisfy the requirements of the
Section 424 of the Code) on such corporation's stock or shall make the
outstanding Options fully exercisable (even if they would not otherwise then be
exercisable) at least 20 days before the effective date of any such dissolution,
liquidation, merger or consolidation.

                                    Section 6
                                    COMMITTEE

6.1      Administration. The authority to control and manage the operation and
         administration of the Plan shall be vested in a committee (the
         "Committee") in accordance with this Section 6. The Committee shall be
         the Committee appointed by the Board. If the


                                       8
<PAGE>

         Committee does not exist, or for any other reason determined by the
         Board, the Board may take any action under the Plan that would
         otherwise be the responsibility of the Committee.

6.2      Powers of Committee. The Committee's administration of the Plan shall
         be subject to the following:

         (a)      Subject to the provisions of the Plan, the Committee will have
                  the authority and discretion to select from among the Eligible
                  Individuals those persons who shall receive Awards, to
                  determine the time or times of receipt, to determine the types
                  of Awards and the number of shares covered by the Awards, to
                  establish the terms, conditions, performance criteria,
                  restrictions, and other provisions of such Awards, to make
                  adjustments to Awards to reflect changes in the Participant's
                  relationship with the Company and (subject to the restrictions
                  imposed by Section 7) to cancel or suspend Awards.

         (b)      To the extent that the Committee determines that the
                  restrictions imposed by the Plan preclude the achievement of
                  the material purposes of the Awards in jurisdictions outside
                  the United States, the Committee will have the authority and
                  discretion to modify those restrictions as the Committee
                  determines to be necessary or appropriate to conform to
                  applicable requirements or practices of jurisdictions outside
                  of the United States.

         (c)      The Committee will have the authority and discretion to
                  interpret the Plan, to establish, amend, and rescind any rules
                  and regulations relating to the Plan, to determine the terms
                  and provisions of any Award Agreement made pursuant to the
                  Plan, and to make all other determinations that may be
                  necessary or advisable for the administration of the Plan.

         (d)      Any interpretation of the Plan by the Committee and any
                  decision made by it under the Plan is final and binding on all
                  persons.

         (e)      In controlling and managing the operation and administration
                  of the Plan, the Committee shall take action in a manner that
                  conforms to the articles and by-laws of the Company, and
                  applicable state corporate law.

6.3      Delegation by Committee. Except to the extent prohibited by applicable
         law or the applicable rules of a stock exchange, the Committee may
         allocate all or any portion of its responsibilities and powers to any
         one or more of its members and may delegate all or any part of its
         responsibilities and powers to any person or persons selected by it.
         Any such allocation or delegation may be revoked by the Committee at
         any time.

6.4      Information to be Furnished to Committee. The Company and Subsidiaries
         shall furnish the Committee with such data and information as it
         determines may be required for it to discharge its duties. The records
         of the Company and Subsidiaries as to an employee's or Participant's
         employment (or other provision of services), termination of employment
         (or cessation of the provision of services), leave of absence,
         reemployment and compensation shall be conclusive on all persons unless
         determined to be incorrect.


                                       9
<PAGE>

         Participants and other persons entitled to benefits under the Plan must
         furnish the Committee such evidence, data or information as the
         Committee considers desirable to carry out the terms of the Plan.

                                    Section 7
                            AMENDMENT AND TERMINATION

         The Board may, at any time, amend or terminate the Plan, provided that
no amendment or termination may, in the absence of written consent to the change
by the affected Participant (or, if the Participant is not then living, the
affected beneficiary), adversely affect the rights of any Participant or
beneficiary under any Award granted under the Plan prior to the date such
amendment is adopted by the Board; and further provided that adjustments
pursuant to paragraph 4.2(f) shall not be subject to the foregoing limitations
of this Section 7. Notwithstanding the foregoing, it is the intent of the
Company that the Plan and Awards made hereunder comply with the requirements of
section 409A of the Code. The Board retains the right to amend the Plan, and the
Committee retains the right to amend any Awards made under the Plan, to the
extent it deems necessary or desirable to conform to the requirements of section
409A and applicable guidance issued thereunder.

                                    Section 8
                                  DEFINED TERMS

         In addition to the other definitions contained herein, the following
definitions shall apply:

         (a)      Award. The term "Award" shall mean any award or benefit
                  granted under the Plan, including, without limitation, the
                  grant of Options, SARs, Bonus Stock Awards, Stock Unit Awards,
                  Restricted Stock Awards, Restricted Stock Unit Awards, and
                  Performance Share Awards.

         (b)      Board. The term "Board" shall mean the Board of Directors of
                  the Company.

         (c)      Change in Control. The term "Change in Control" shall mean:

                  (i)      the consummation of transactions approved by the
                           stockholders of the Company pursuant to a definitive
                           agreement to merge the Company into or consolidate
                           the Company with another entity, sell or otherwise
                           dispose of all or substantially all of its assets or
                           adopt a plan of liquidation, provided that if the
                           merger, consolidation, sale of assets or liquidation
                           is not consummated for any reason, then no Change in
                           Control shall be deemed to have occurred, and further
                           provided, that if the merger, consolidation, sale of
                           assets or liquidation is consummated, then a Change
                           in Control shall be deemed to have occurred as of the
                           date of the consummation of the transaction;
                           provided, however, that a Change in Control shall not
                           be deemed to have occurred by reason of a
                           transaction, or a substantially concurrent or
                           otherwise related series of transactions, upon the
                           completion of which 50% or more of the beneficial
                           ownership of the voting power of the Company, the
                           surviving corporation or corporation directly or
                           indirectly controlling the Company or the surviving


                                       10
<PAGE>

                           corporation, as the case may be, is held by the same
                           persons (as defined below) (although not necessarily
                           in the same proportion) as held the beneficial
                           ownership of the voting power of the Company
                           immediately prior to the transaction or the
                           substantially concurrent or otherwise related series
                           of transactions, except that upon the completion
                           thereof, employees or employee benefit plans of the
                           Company may be a new holder of such beneficial
                           ownership; provided, further, that a transaction with
                           an "Affiliate" of the Company (as defined in the
                           Exchange Act) shall not be treated as a Change in
                           Control; or

                  (ii)     the "beneficial ownership" (as defined in Rule 13d-3
                           under the Exchange Act) of securities representing
                           50% or more of the combined voting power of the
                           Company is acquired, other than from the Company, by
                           any "person" as defined in Sections 13(d) and 14(d)
                           of the Exchange Act (other than by an Affiliate or
                           any trustee or other fiduciary holding securities
                           under an employee benefit or other similar stock plan
                           of the Company); or

                  (iii)    at any time during any period of two consecutive
                           years, individuals who at the beginning of such
                           period were members of the Board cease for any reason
                           to constitute at least a majority thereof (unless the
                           election, or the nomination for election by the
                           Company's stockholders, of each new director was
                           approved by a vote of at least two-thirds of the
                           directors still in office at the time of such
                           election or nomination who were directors at the
                           beginning of such period).

                  Notwithstanding the foregoing, Change in Control shall not be
                  deemed any change due to a public offering of Stock or any
                  other securities of the Company.

         (d)      Code. The term "Code" means the Internal Revenue Code of 1986,
                  as amended. A reference to any provision of the Code shall
                  include reference to any successor provision of the Code.

         (e)      Eligible Individual. The term "Eligible Individual" shall mean
                  any employee of the Company or a Subsidiary and any
                  consultant, director, or other person providing services to
                  the Company or a Subsidiary; provided however, that an ISO may
                  only be granted to an employee of the Company or a Subsidiary.
                  An Award may be granted to an individual, in connection with
                  hiring, retention or otherwise, prior to the date the
                  individual first performs services for the Company or the
                  Subsidiaries, provided that such Awards shall not become
                  vested prior to the date the individual first performs such
                  services.

         (f)      Fair Market Value. For purposes of determining the "Fair
                  Market Value" of a share of Stock as of any date, the
                  following rules shall apply:

                  (i)      If, as of the date for which a determination is to be
                           made, the principal market for the Stock is a
                           national securities exchange or the Nasdaq stock
                           market, then the "Fair Market Value" shall be the
                           closing price of the


                                       11
<PAGE>

                           Stock on the principal exchange or market on which
                           the Stock is then listed or admitted to trading
                           determined as of the business day preceding the date
                           for which the determination is to be made.

                  (ii)     If, as of the date for which a determination is to be
                           made, the sale prices are not available or the
                           principal market for the Stock is not a national
                           securities exchange and the Stock is not quoted on
                           the Nasdaq stock market, then the "Fair Market Value"
                           shall be the closing price for the Stock as reported
                           on the Nasdaq OTC Bulletin Board Service or by the
                           National Quotation Bureau, Incorporated or a
                           comparable service determined as of the business day
                           preceding the date for which the determination is to
                           be made.

                  (iii)    If, in accordance with rules established by the
                           Committee, a determination of "Fair Market Value" is
                           required as of any date and, as of that date,
                           paragraphs (i) and (ii) next above are inapplicable,
                           then the "Fair Market Value" as of that date shall be
                           determined by a nationally-recognized appraisal or
                           investment banking firm experienced in appraising
                           businesses, or by such other person, employee or
                           entity as shall be determined by the Committee from
                           time to time or such other method as the Committee
                           may decide in its sole discretion, with such
                           valuation to be performed in accordance with such
                           rules and considerations as are established by the
                           Committee. The Company shall bear the fees and
                           expenses of such valuation.

         (g)      Stock. The term "Stock" shall mean shares of common stock of
                  the Company.

         (h)      Subsidiaries. The term "Subsidiary" means any company during
                  any period in which it is a "subsidiary corporation" (as that
                  term is defined in Code section 424(f)) with respect to the
                  Company.


                                       12
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>11
<FILENAME>y24537a5exv10w4.txt
<DESCRIPTION>EX-10.4: FORM OF NON-QUALIFIED STOCK OPTION AGREEMENT
<TEXT>
<PAGE>


                                                                    EXHIBIT 10.4


                             COMMVAULT SYSTEMS, INC.
                      NON-QUALIFIED STOCK OPTION AGREEMENT

This Non-Qualified Stock Option Agreement (the "Agreement") dated, is made by
and between CommVault Systems, Inc., a Delaware corporation (the
"Company") and (the "Optionee").

By signing below, the Optionee acknowledges that he or she has read, understands
and agrees to be bound by all terms and conditions of this Agreement set forth
herein and attached hereto, including the Grant Notice, (together the
"Agreement").

CommVault Systems, Inc.


----------------------------------             ---------------------------------
Signature                                      Optionee's Signature
N. Robert Hammer
----------------------------------
Name
Chief Executive Officer
----------------------------------
Title


PLEASE SIGN AND RETURN THIS DOCUMENT IN ITS ENTIRETY TO
CHRISTINE HALPER - FINANCE.
----------------------------------


                NOTICE OF GRANT OF STOCK OPTION ("GRANT NOTICE")

Notice is hereby given to the Optionee, as identified above, of the following
option grant (the "Options") to purchase shares of the Common Stock of CommVault
Systems, Inc.


Grant Date:


Vesting Commencement Date:


Exercise Price:


Number of Options:


                                  Page 1 of 11
<PAGE>


Expiration Date:


                                  Page 2 of 11
<PAGE>


Commencement of Exercisability:


(a)      Subject to subsection (b), the Options shall become exercisable in
         cumulative installments as follows: (i) The first installment shall
         consist of shares and shall become exercisable on the first day
         following the first anniversary of the Vesting Commencement Date
         thereafter. (ii) An installment consisting of shares shall become
         exercisable on the first day following each quarterly anniversary of
         the Vesting Commencement Date thereafter.

(b)      Notwithstanding the foregoing, no portion of the Option, which is
         unexercisable upon the Optionee's Termination of Employment shall
         thereafter become exercisable.

(c)      Optionee understands and agrees that the Options are granted subject to
         and in accordance with the terms of the CommVault Systems, Inc. 1996
         Stock Option Plan (the "Plan") and any amendments thereto. Optionee
         understands that any shares of Common Stock purchased under the Options
         will be subject to the terms set forth in the Stockholders Agreement
         and any amendments thereto, which may be reviewed at the Company's
         offices. Optionee hereby acknowledges receipt of a copy of the Plan.

TRANSFER RESTRICTIONS. OPTIONEE HEREBY AGREES THAT ALL SHARES OF COMMON STOCK
ACQUIRED UPON THE EXERCISE OF THE OPTIONS SHALL BE SUBJECT TO CERTAIN TRANSFER
RESTRICTIONS AND RIGHTS OF FIRST REFUSAL EXERCISABLE BY THE COMPANY AND ITS
ASSIGNS. THE TERMS OF SUCH RIGHTS AND RESTRICTIONS ARE SPECIFIED IN THE
STOCKHOLDERS AGREEMENT, AVAILABLE FOR REVIEW AT THE COMPANY'S OFFICES.


                                  Page 3 of 11
<PAGE>


                             COMMVAULT SYSTEMS, INC.
                      NON-QUALIFIED STOCK OPTION AGREEMENT


         WHEREAS, the Company has adopted the CommVault Systems, Inc. 1996 Stock
Option Plan (the "Plan");

         WHEREAS, the Optionee is an employee of Company, or other Participant
as defined in the Plan;

         WHEREAS, the Options granted pursuant to this Agreement and the shares
of Common Stock issued upon exercise of the Options are subject to all of the
terms and provisions of the Plan and the Stockholders Agreement. In the event of
any conflict between this Agreement and the Plan, the terms of the Plan shall
control, and in the event of any conflict between this Agreement or the Plan and
the Stockholders Agreement, the terms of the Stockholders Agreement shall
control.

         NOW, THEREFORE, in consideration of the mutual covenants herein
contained and other good and valuable consideration, receipt of which is hereby
acknowledged, the Company and the Optionee do hereby agree to the terms and
conditions of this Agreement.


                                   DEFINITIONS

The following terms shall have the meanings specified below unless the context
clearly indicates to the contrary. The singular pronoun shall include the
plural, where the context so indicates. Other capitalized terms not defined in
this Agreement shall have the meanings specified in the Plan.

1. "BOARD" shall mean the Board of Directors of the Company.

2. "COMMITTEE" shall mean the Compensation Committee of the Board; provided,
however, that in the event no such Committee is elected, the Board shall have
all duties and powers reserved to the Committee, and the term "Committee" as
used herein shall refer to the Board.

3. "COMMON STOCK" shall mean the common stock, par value $0.01 per share, of the
Company.

4. "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as amended.

5. "FAIR MARKET VALUE" of a share of Common Stock as of a given date shall be

         (a) the fair market value of a share of Common Stock as established by
the Committee acting in good faith, or

         (b) if Common Stock is publicly traded on an exchange or quoted on
NASDAQ or any over-the-counter system, the average over a period of 21 days
consisting of the date as of which the Fair Market Value is being determined and
the 20 consecutive trading days prior to such date of the mean between the
closing prices of the sales of such Common Stock as of such dates on all
national securities exchanges on which such securities may at the time be
listed, or if there have been no sales on any such exchange on any such dates,

         (c) the mean between the highest bid and lowest asked prices on all
such exchanges at the close of business on such dates, or, if Common Stock is
not listed on an exchange but is quoted in the NASDAQ system, the mean between
the representative bid and asked prices quoted


                                  Page 4 of 11
<PAGE>


in the NASDAQ System as of 4:00 P.M., New York time on such dates, or, if Common
Stock is not quoted in the NASDAQ System,

         (d) the mean between the highest bid and lowest asked prices on such
dates in the domestic over-the-counter market as reported by the National
Quotation Bureau Incorporated, or any similar successor organization.

6. "GRANT NOTICE" shall mean the Notice of Grant of Stock Option accompanying
this Agreement, pursuant to which the Optionee has been informed of the terms of
the Options evidenced hereby.

7. "OPTIONS" shall mean the non-qualified stock options to purchase Common Stock
granted to the Optionee pursuant to the Plan and the Grant Notice.

8. "PARENT CORPORATION" shall mean any corporation in an unbroken chain of
corporations ending with the Company if each of the corporations other than the
Company then owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain.

9. "PLAN" shall mean that certain CommVault Systems, Inc. 1996 Stock Option
Plan, as amended.

10. "QDRO" shall mean a qualified domestic relations order as defined by the
Internal Revenue Code of 1986, as amended, or Title I of the Employee Retirement
Income Security Act of 1974, as amended, or the regulations and rules
thereunder.

11. "RULE 16B-3" shall mean that certain Rule 16b-3 under the Exchange Act, as
such Rule may be amended from time to time.

12. "SECURITIES ACT" shall mean the Securities Act of 1933, as amended.

13. "STOCKHOLDERS AGREEMENT" shall mean that certain Stockholders Agreement
dated as of May 22, 1996, as amended, by and among the Company and the other
stockholders of the Company that are or may from time to time become parties
thereto.

14. "SUBSIDIARY" shall mean any corporation in an unbroken chain of corporations
beginning with the Company if each such corporation, other than the last
corporation in the unbroken chain, then owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

15. "TERMINATION OF EMPLOYMENT" shall mean the time when the employee-employer
relationship between the Optionee and the Company or any Parent Corporation or
Subsidiary is terminated for any reason, with or without good cause, including,
but not by way of limitation, a termination by resignation, discharge, death,
disability or retirement; but excluding (a) a termination where there is a
simultaneous reemployment or continuing employment of the Optionee by the
Company or any Parent Corporation or Subsidiary, (b) at the discretion of the
Committee, a termination which results in a temporary severance of the
employee-employer relationship, and (c) at the discretion of the Committee, a
termination which is followed by the simultaneous establishment of a consulting
relationship by the Company or any Parent Corporation or Subsidiary with the
Optionee. The Committee, in its discretion, shall determine the effect of all
matters and questions relating to Termination of Employment, including, but not
by way of limitation, the question of whether a Termination of Employment
resulted from a discharge for good cause, and all questions of whether a
particular leave of absence constitutes Terminations of Employment.
Notwithstanding any other provision of this Agreement or the Plan, the Company
or any Parent Corporation or Subsidiary has an absolute and unrestricted right
to terminate the Optionee's employment at any time for any reason whatsoever,
with or without good cause, except to the extent expressly provided otherwise in
a written employment agreement between the Optionee and the Company (or Parent
Corporation or Subsidiary).


                           ARTICLE I: GRANT OF OPTIONS


                                  Page 5 of 11
<PAGE>


1.1 GRANT OF OPTIONS. In consideration of the Optionee's promises set forth in
Section 1.2, and for other good and valuable consideration, on the date hereof
the Company irrevocably grants to the Optionee, subject to the terms and
conditions set forth in this Agreement and the Plan, the number of Options
specified in the Grant Notice, each with respect to one share of Common Stock,
subject to adjustment as provided in the Plan and herein.

1.2  CONSIDERATION TO THE COMPANY

         1.2.1 FAITHFUL SERVICES. In consideration of the granting of the
Options the Optionee agrees to render faithful and efficient services to the
Company or a Parent Corporation or a Subsidiary of the Company, with such duties
and responsibilities as such employer shall from time to time prescribe.

         1.2.2 NON-COMPETITION. In consideration of the granting of the Options
the Optionee agrees that Optionee WILL NOT IN ANY MANNER OR CAPACITY, DIRECTLY
OR INDIRECTLY, COMPETE WITH COMPANY in any business presently or hereafter
engaged in by Company during the period of his or her employment and for a
period of ONE (1) YEAR from Optionee's Termination of Employment with Company.

         1.2.3 NON-SOLICITATION. In consideration of the granting of the Options
the Optionee agrees that Optionee will not in any manner or capacity, directly
or indirectly, solicit or attempt to solicit for employment, whether full time,
part time or on a consultant basis, any current or future employee of Company
for a period of 1 year.

         1.2.4 DIVERSION OF BUSINESS. In consideration of the granting of the
Options the Optionee agrees that Optionee will not in any manner or capacity,
directly or indirectly, divert or attempt to divert from Company, through any
means whatsoever, any business or customers of Company.

         1.2.5 ADEQUATE AND LEGITIMATE PROTECTION OF COMPANY/INJUNCTIVE RELIEF.
Optionee recognizes that the foregoing obligations and limitations are
reasonable for the legitimate and adequate protection of the Company in
consideration of the Options herein granted. The parties acknowledge that the
injury that Company will suffer in the event of a breach by Optionee of this
Section 1.2 cannot be compensated by monetary damages alone, and Optionee
therefore agrees that Company, in addition to and without limiting any other
remedies or rights that it may have either under this Agreement or otherwise,
shall have the right to obtain an injunction against Optionee from any court of
competent jurisdiction, enjoining such breach.

         1.2.6 EMPLOYMENT AT WILL. Nothing in this Agreement shall confer upon
the Optionee any right to continue in the employ of the Company, any Parent
Corporation or any Subsidiary or shall interfere with or restrict in any way the
rights of the Company, any Parent Corporation or any Subsidiary of the Company,
which are hereby expressly reserved, to discharge the Optionee at any time for
any reason whatsoever, with or without good cause.

 1.3 ADJUSTMENTS IN OPTIONS. In the event that the outstanding shares of the
stock subject to the Options are changed into or exchanged for a different
number or kind of shares of the Company or other securities of the Company by
reason of merger, consolidation, recapitalization, reclassification, stock
split, stock dividend or combination of shares, the Committee shall make an
appropriate and equitable adjustment in the number and kind of shares as to
which the Options, or portions thereof then unexercised, shall be exercisable,
to the end that after such


                                  Page 6 of 11
<PAGE>


event the Optionee's proportionate interest shall be maintained as before the
occurrence of such event. Such adjustment in the Options shall be made without
change in the total price applicable to the unexercised portion of the Options
(except for any change in the aggregate price resulting from rounding-off of
share quantities or prices) and with any necessary corresponding adjustment in
the exercise price per share. Any such adjustment made by the Committee shall be
final and binding upon the Optionee, the Company and all other interested
persons.

1.4 EXERCISABILITY. Options shall become exercisable in one or more installments
as specified in the Grant Notice. Such installments shall accumulate and each
such installment which becomes exercisable shall remain exercisable until it
becomes unexercisable under Section 1.5.

1.5 EXPIRATION OF OPTIONS. The Options may not be exercised to any extent by
anyone after the first to occur of the following events: (a) The tenth (10th)
anniversary of the date of this Agreement; or, (b) The thirtieth (30th) day
following the Optionee's Termination of Employment for any reason; or, (c) The
effective date of the occurrence of a transaction or event described in Section
3.3 in connection with which the Committee provides, by action taken prior to
the occurrence of such transaction or event, that the Options shall not be
exercisable after such transaction or event.


                         ARTICLE II: EXERCISE OF OPTIONS

2.1 PERSON ELIGIBLE TO EXERCISE. During the lifetime of the Optionee, only he or
she may exercise the Options or any portion thereof, unless it has been disposed
of pursuant to a QDRO. After the death of the Optionee, any exercisable portion
of the Options may, prior to the time when the Options (or portion thereof)
become unexercisable under Section 1.5, be exercised by his or her personal
representative or by any person empowered to do so under the Optionee's will or
under the then applicable laws of descent and distribution.

2.2 PARTIAL EXERCISE. Exercisable Options may be exercised in whole or in part
at any time prior to the time when the Options or portion thereof become
unexercisable under Section 1.5; provided, however, that each partial exercise
shall be for not less than the smallest exercisable installment set forth in the
Grant Notice, and shall be for whole shares only.

2.3 MANNER OF EXERCISE. The Options, or any exercisable portion thereof, shall
be deemed exercised upon delivery of all of the following to the Secretary of
the Company or his or her office prior to the Option becoming unexercisable
under Section 1.5:

         (a) A written notice complying with the applicable rules established by
the Committee stating that the Option, or a portion thereof, is exercised. The
notice shall be signed by the Optionee or other person then entitled to exercise
the Option or such portion;

         (b) Full payment (in cash or by check) for the shares with respect to
which such Option is exercised; provided that the Committee may, in its
discretion, allow payment, in whole or in part, through the surrender of shares
of Common Stock then issuable upon exercise of the Options having a Fair Market
Value on the date of exercise equal to the aggregate exercise price of the
Options or exercised portion thereof;

         (c) A bona fide written representation and agreement, in a form
satisfactory to the Committee, signed by the Optionee or other person then
entitled to exercise such Options, stating that the shares of Common Stock are
being acquired for his or her own account, for investment and without any
present intention of distributing or reselling said shares or any of them except
as


                                  Page 7 of 11
<PAGE>


may be permitted under the Securities Act and then applicable rules and
regulations thereunder, and that the Optionee or other person then entitled to
exercise such Option or portion will indemnify the Company against and hold it
free and harmless from any loss, damage, expense or liability resulting to the
Company if any sale or distribution of the shares by such person is contrary to
the representation and agreement referred to above. The Committee may, in its
discretion, take whatever additional actions it deems appropriate to insure the
observance and performance of such representation and agreement and to effect
compliance with the Securities Act and any other federal or state securities
laws or regulations. Without limiting the generality of the foregoing, the
Committee may require an opinion of counsel acceptable to it to the effect that
any subsequent transfer of shares acquired on exercise of Options does not
violate the Securities Act, and may issue stop-transfer orders covering such
shares. Share certificates evidencing Common Stock issued on exercise of the
Options shall bear an appropriate legend referring to the provisions of this
subsection (c) and the Stockholders Agreement and the agreements herein. The
written representation and agreement referred to in the first sentence of this
subsection (c) shall, however, not be required if the shares to be issued
pursuant to such exercise have been registered under the Securities Act, and
such registration is then effective in respect of such shares;

         (d) A bona fide written representation and agreement, in a form
satisfactory to the Committee, signed by the Optionee or other person then
entitled to exercise such Option, stating that the Optionee (or other holder of
the Option) shall be deemed to be a signatory to, and to be bound by all of the
terms and provisions of, the Stockholders Agreement, and that such Optionee (or
other holder) agrees that upon request by the Company, he or she will execute a
signature page to such Stockholders Agreement; and

         (e) In the event the Options shall be exercised pursuant to Section 2.1
by any person or persons other than the Optionee, appropriate proof of the right
of such person or persons to exercise the Options.

2.4 CONDITIONS TO ISSUANCE OF STOCK CERTIFICATES. The shares of Common Stock
deliverable upon the exercise of Options may be either previously authorized but
unissued shares or issued shares which have then been reacquired by the Company.
Such shares shall be fully paid and nonassessable. The Company shall not be
required to issue or deliver any certificate or certificates for shares of
Common Stock purchased upon the exercise of Options prior to fulfillment of all
of the following conditions: (a) The admission of such shares to listing on all
stock exchanges on which such class of stock is then listed; and, (b) The
completion of any registration or other qualification of such shares under any
state or federal law or under rulings or regulations of the Securities and
Exchange Commission or of any other governmental regulatory body, which the
Committee shall, in its discretion, deem necessary or advisable; and, (c) The
obtaining of any approval or other clearance from any state or federal
governmental agency which the Committee shall, in its discretion, determine to
be necessary or advisable; and, (d) The payment to the Company (or other
employer corporation) of all amounts which, under federal, state or local tax
law, it is required to withhold upon exercise of the Options in accordance with
Section 3.4; and, (e) The lapse of such reasonable period of time following the
exercise of the Option as the Committee may from time to time establish for
reasons of administrative convenience.

2.5 RIGHTS AS STOCKHOLDER. The holder of the Options shall not be, nor have any
of the rights or privileges of, a stockholder of the Company in respect of any
shares purchasable upon the exercise of any Option unless and until certificates
representing such shares shall have been issued by the Company to such holder.


                                  Page 8 of 11
<PAGE>


                          ARTICLE III: OTHER PROVISIONS

3.1 OPTIONS NOT TRANSFERABLE. Options may not be sold, pledged, assigned, or
transferred in any manner other than by will or the laws of descent and
distribution or pursuant to a QDRO, unless and until the Options have been
exercised, or the shares underlying the Options have been issued, and all
restrictions applicable to such shares have lapsed. No Options or interest or
right therein shall be liable for the debts, contracts or engagements of the
Optionee or his or her successors in interest or shall be subject to disposition
by transfer, alienation, anticipation, pledge, encumbrance, assignment or any
other means whether such disposition be voluntary or involuntary or by operation
of law by judgment, levy, attachment, garnishment or any other legal or
equitable proceedings (including bankruptcy), and any attempted disposition
thereof shall be null and void and of no effect, except to the extent that such
disposition is permitted by the preceding sentence.

3.2 SHARES TO BE RESERVED. The Company shall at all times during the term of the
Options reserve and keep available such number of shares of Common Stock as will
be sufficient to satisfy the requirements of this Agreement.

3.3 CHANGES IN COMMON STOCK OR ASSETS OF THE COMPANY, ACQUISITION OR LIQUIDATION
OF THE COMPANY AND OTHER CORPORATE EVENTS

         (a) In the event that the Committee determines that any dividend or
other distribution (whether in the form of cash, Common Stock, other securities,
or other property), recapitalization, reclassification, stock split, reverse
stock split, reorganization, merger, consolidation, split, spin-off,
combination, repurchase, liquidation, dissolution, or sale, transfer, exchange
or other disposition of all or substantially all of the assets of the Company,
or exchange of Common Stock or other securities of the Company, issuance of
warrants or other rights to purchase Common Stock or other securities of the
Company, or other similar corporate transaction or event, in the Committee's
sole discretion, affects the Common Stock such that an adjustment is determined
by the Committee to be appropriate in order to prevent dilution or enlargement
of the benefits or potential benefits intended to be made available with respect
to the Options, then the Committee shall, in such manner as it may deem
equitable, adjust any or all of: (i) the number and kind of shares of Common
Stock (or other securities or property) subject to the Options, and, (ii) the
exercise price with respect to the Options.

         (b) In the event of any transaction or event described in Section
3.3(a) or any unusual or nonrecurring transactions or events affecting the
Company, any affiliate of the Company, or the financial statements of the
Company or any affiliate, or of changes in applicable laws, regulations, or
accounting principles, the Committee, in its discretion, is hereby authorized to
take any one or more of the following actions whenever the Committee determines
that such action is appropriate in order to prevent dilution or enlargement of
the benefits or potential benefits intended to be made available with respect to
the Options, to facilitate such transactions or events or to give effect to such
changes in laws, regulations or principles: (i) In its sole discretion, and on
such terms and conditions as it deems appropriate, the Committee may provide, by
action taken prior to the occurrence of such transaction or event and either
automatically or upon the Optionee's request, for either the purchase of the
Options (to the extent unexercised) for an amount of cash equal to the amount
that could have been attained upon the exercise of the Options or realization of
the Optionee's rights had such Options been currently exercisable or the
replacement of the Options with other rights or property selected by the
Committee in its sole discretion; (ii) In its sole discretion, the Committee may
provide, by action taken prior to the occurrence of such transaction or event,
that the Option cannot be


                                  Page 9 of 11
<PAGE>


exercised after such event; (iii) In its sole discretion, and on such terms and
conditions as it deems appropriate, the Committee may provide, by action taken
prior to the occurrence of such transaction or event, that for a specified
period of time prior to such transaction or event, the Options shall be
exercisable as to all shares covered thereby, notwithstanding anything to the
contrary in this Agreement; (iv) In its sole discretion, and on such terms and
conditions as it deems appropriate, the Committee may provide, by action taken
prior to the occurrence of such transaction or event, that upon such event, the
Options be assumed by the successor or survivor corporation, or a parent or
subsidiary thereof, or shall be substituted for by similar options, rights or
awards covering the stock of the successor or survivor corporation, or a parent
or subsidiary thereof, with appropriate adjustments as to the number and kind of
shares and prices; and (v) In its sole discretion, and on such terms and
conditions as it deems appropriate, the Committee may make adjustments in the
number and type of shares of Common Stock (or other securities or property)
subject to the Options (to the extent unexercised) and/or in the terms and
conditions of the Options (including the exercise price).

         (c) No adjustment or action described in this Section 4.3 or in any
other provision of this Agreement shall be authorized to the extent that such
adjustment or action would result in short-swing profits liability under Section
16 of the Exchange Act or violate the exemptive conditions of Rule 16b-3 unless
the Committee determines that the Option is not to comply with such exemptive
conditions.

         (d) The number of shares of Common Stock subject to any Option shall
always be rounded to the next whole number.

3.4 TAX WITHHOLDING. The Company shall be entitled to require payment in cash or
deduction from other compensation payable to each Optionee of any sums required
by federal, state or local tax law to be withheld with respect to the issuance,
commencement of exercisability or exercise of the Options. The Committee may, in
its discretion, allow the Optionee to elect to have the Company withhold shares
of Common Stock otherwise issuable under the Options having a Fair Market Value
equal to the sums required to be withheld.

3.5 LIMITATIONS APPLICABLE TO SECTION 16 PERSONS. Notwithstanding any other
provision of this Agreement, the Plan and the Options shall be subject to any
additional limitations set forth in any applicable exemptive rule under Section
16 of the Exchange Act (including any amendment to Rule 16b-3) that are
requirements for the application of such exemptive rule, to the extent the
Optionee is subject to Section 16 of the Exchange Act. To the extent permitted
by applicable law, this Agreement and the Options shall be deemed amended to the
extent necessary to conform to such applicable exemptive rule.

3.6 NOTICES. Any notice to be given under the terms of this Agreement to the
Company shall be addressed to the Company in care of its Secretary, and any
notice to be given to the Optionee shall be addressed to him at the address
given beneath his signature on the Grant Notice. By a notice given pursuant to
this Section 3.6, either party may hereafter designate a different address for
notices to be given to him or it. Any notice which is required to be given to
the Optionee shall, if the Optionee is then deceased, be given to the Optionee's
personal representative if such representative has previously informed the
Company of his or her status and address by written notice under this Section
3.6. Any notice shall be deemed duly given when enclosed in a properly sealed
envelope or wrapper addressed as aforesaid, deposited (with postage prepaid) in
a post office or branch post office regularly maintained by the United States
Postal Service.

3.7 TITLES. Titles are provided herein for convenience only and are not to serve
as a basis for interpretation or construction of this Agreement.


                                 Page 10 of 11
<PAGE>


3.8 CONFORMITY TO LAWS. The Optionee acknowledges that the Plan, this Agreement,
the Options and shares of Common Stock issuable upon exercise of the Options are
subject to compliance with all applicable federal and state laws, rules and
regulations (including, but not limited to, federal and state securities laws)
and to such approvals by any listing, regulatory or governmental authority as
may, in the opinion of counsel for the Company, be necessary or advisable in
connection therewith. To the extent permitted by applicable law, this Agreement
and the Options shall be deemed amended to the extent necessary to conform to
such laws, rules and regulations.

3.9 INVALID PROVISION. The invalidity or unenforceability of any particular
provision hereof shall not affect the other provisions hereof, and this
Agreement shall be construed in all respects as if such invalid or unenforceable
provision was omitted.

3.10 COUNTERPARTS. This Agreement may be executed simultaneously in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

3.11 ASSIGNMENT. Except as otherwise provided herein, no party may assign this
Agreement or any of his or its rights, interests or obligations hereunder
without the prior written consent of the other parties, provided that the
Company's rights and obligations hereunder may be assigned to any Parent
Corporation or Subsidiary or to any successor pursuant to a merger,
consolidation or similar event. Subject to the foregoing, this Agreement and the
respective rights and obligations of the parties hereto shall inure to the
benefit of and be binding upon, the successors and assigns of the parties.

3.12 EFFECT OF OPTIONS UPON OTHER COMPENSATION PLANS. The Options and any
payments with respect thereto shall not constitute "compensation" for purposes
of any pension, welfare or other benefit plan or policy of the Company unless
provided for therein.

3.13 LAW GOVERNING. The laws of the State of New York shall govern the
interpretation, validity and performance of the terms hereof, regardless of the
law that might be applied under principles of conflicts of law.

3.14 VENUE. Any suit hereunder shall be brought in the federal or state courts
in the districts which include Monmouth County, New Jersey and Optionee hereby
agrees and submits to the personal jurisdiction and venue thereof.


                                 Page 11 of 11

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.13
<SEQUENCE>12
<FILENAME>y24537a5exv10w13.txt
<DESCRIPTION>EX-10.13: FORM OF REGISTRATION RIGHTS AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.13


                          REGISTRATION RIGHTS AGREEMENT


         This REGISTRATION RIGHTS AGREEMENT, dated as of September [ ], 2006
(this "Agreement"), 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. (each of the foregoing, collectively, the "DLJ Entities"), N. Robert
Hammer and Lou Miceli (each of the foregoing, including the DLJ Entities, an
"Investor" and collectively, the "Investors") and CommVault Systems, Inc., a
Delaware corporation (the "Company").

         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, the Fourth Amendment thereto,
dated September 2, 2003, and the Fifth Amendment thereto, dated May 22, 2006 (as
so amended, the "Original Agreement");

         WHEREAS, the parties hereto desire to amend and restate the Original
Agreement as set forth herein; and

         WHEREAS, in compliance with Section 6.4(a) of the Original Agreement,
this Agreement has been approved by the Board of Directors of the Company and
the signatories hereto represent holders of at least 85% of the Fully Diluted
Common Stock (as defined below) held by parties to the Original Agreement.

         NOW, THEREFORE, in consideration of the foregoing and the covenants of
the parties set forth herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, subject to the terms
and conditions set forth herein, the parties hereby agree as follows:

         Section 1. Certain Definitions. In this Agreement the following terms
shall have the following respective meanings:

                  "Commission" shall mean the Securities and Exchange Commission
or any other federal agency at the time administering the Securities Act.

                  "Common Stock" shall mean shares of Common Stock, par value
$0.01 per share, of the Company.

                  "Demand Registration" shall have the meaning ascribed to it in
Section 2(a) of this Agreement.

                  "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended, and the rules and regulations of the Commission thereunder, all as
the same shall be in effect at the relevant time.
<PAGE>

                  "Fully Diluted" shall mean, with respect to the 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 Company).

                  "Holders" shall mean the Investors, (ii) each Person holding
Registrable Stock as a result of a transfer or assignment to that Person of
Registrable Stock other than pursuant to an effective registration statement or
Rule 144 under the Securities Act and (iii) Persons holding Registrable Stock as
of the date hereof and any permitted transferees hereunder.

                  "Indemnified Party" shall have the meaning ascribed to it in
Section 7(c) of this Agreement.

                  "Indemnifying Party" shall have the meaning ascribed to it in
Section 7(c) of this Agreement.

                  "Initiating Holders" shall mean any Holder or Holders who in
the aggregate hold not less than 10% of the Fully Diluted Common Stock
outstanding.

                  "Other Investors" shall mean N. Robert Hammer and Lou Miceli,
collectively.

                  "Person" shall mean an individual, corporation, partnership,
estate, trust, association, private foundation, joint stock company or other
entity.

                  "Piggyback Notice" shall have the meaning ascribed to it in
Section 3(a) of this Agreement.

                  "Piggyback Registration" shall have the meaning ascribed to it
in Section 3(a) of this Agreement.

                  "Preferred Stock" shall mean the Company's Series A Preferred
Stock, par value $0.01 per share, Series B Preferred Stock, par value $0.01 per
share, Series C Preferred Stock, par value $0.01 per share, Series D Preferred
Stock, par value $0.01 per share, and Series E Preferred Stock, par value $0.01
per share.

                  The terms "Register," "Registered" and "Registration" refer to
a registration effected by preparing and filing a registration statement in
compliance with the Securities Act providing for the sale by the Holders of
Registrable Stock in accordance with the method or methods of distribution
designated by the Holders, and the declaration or ordering of the effectiveness
of such registration statement by the Commission.

                  "Registrable Stock" shall mean (i) Common Stock received upon
conversion of Preferred Stock and (ii) Common Stock issued to the Investors as a
dividend or other distribution.


                                       2
<PAGE>

                  "Registration Request" shall have the meaning ascribed to it
in Section 2(a) of this Agreement.

                  "Rule 144" shall mean Rule 144 promulgated by the Commission
under the Securities Act.

                  "Securities Act" shall mean the Securities Act of 1933, as
amended, and the rules and regulations of the Commission thereunder, all as the
same shall be in effect at the relevant time.

                  "Series AA Holders" shall mean each holder of piggy-back
rights granted under the Amended and Restated Registration Rights Agreement,
dated as of September 2, 2003, relating to shares of the Company's Series AA
Preferred Stock.

                  "Series CC Holders" shall mean each holder of piggy-back
rights granted under the Amended and Restated Registration Rights Agreement,
dated as of September 2, 2003, relating to shares of the Company's Series CC
Preferred Stock.

                   "Suspension Right" shall have the meaning ascribed to it in
Section 2(a) of this Agreement.

                  "S-3 Suspension Right" shall have the meaning ascribed to it
in Section 4(a) of this Agreement.

         Section 2.        Demand Registration.

                  (a) Upon receipt of a written request (a "Registration
Request") from Initiating Holders with respect to Registrable Stock representing
at least 25% of such Initiating Holders' Registrable Stock (or any lesser
percentage having a reasonably anticipated aggregate offering price to the
public of $2,000,000)(a "Demand Registration"), the Company shall (i) promptly
give notice of the Registration Request to all non-requesting Holders and (ii)
prepare and file with the Commission promptly, but in any event within (x) 90
days after its receipt of such Registration Request if the Company had not
conducted an underwritten public offering of the Common Stock before such time
and (y) 45 days after its receipt of such Registration Request if the Company
had conducted an underwritten public offering of the Common Stock before such
time, a registration statement for the purpose of effecting a Registration of
the sale of all Registrable Stock requested to be Registered by the requesting
Holders and any other Holder who requests to have his Registrable Stock included
in such registration statement within ten days after receipt of notice by such
Holder of the Registration Request. The Company shall use commercially
reasonable efforts to effect such Registration as soon as practicable
(including, without limitation, the execution of an undertaking to file
post-effective amendments and appropriate qualification under applicable state
securities laws); and shall keep such Registration continuously effective until
the earlier of (i) the second anniversary of the date that shares of Registrable
Stock are first sold pursuant to such Registration, (ii) the date on which all
shares of Registrable Stock have been sold pursuant to such registration
statement or Rule 144 and (iii) the date on which, in the reasonable opinion of
counsel to the Company, all of the Registrable Stock may be sold in accordance
with Rule 144(k); provided, however, that the Company shall not be obligated to
take any action to effect any such Registration, qualification or compliance
pursuant


                                       3
<PAGE>

to this Section 2 (i) in any particular jurisdiction in which the Company would
become subject to taxation or would be required to execute a general consent to
service of process in effecting such Registration, qualification or compliance
unless the Company is already subject to taxation or service in such
jurisdiction or (ii) during the period starting with the date 60 days prior to
the Company's good faith estimate of the date of filing of, and ending on a date
180 days after the effective date of, a Company-initiated registration.

         Notwithstanding the foregoing, the Company shall have the right (the
"Suspension Right") to defer such filing (or suspend sales under any filed
registration statement or defer the updating of any filed registration statement
and suspend sales thereunder) at any time or from time to time, for a period of
not more than 90 days during any period of 365 days, if the Company shall
furnish to the Holders a certificate signed by an executive officer or any
trustee of the Company stating that, in the good faith judgment of the Company,
it would be detrimental to the Company and its shareholders to file such
registration statement or amendment thereto at such time (or continue sales
under a filed registration statement) and therefore the Company has elected to
defer the filing of such registration statement (or suspend sales under a filed
registration statement).

         (b) If a Demand Registration is an underwritten Demand Registration
with other holders requesting to include their securities pursuant to other
piggy back rights and the managing underwriters advise the Company in writing
that, in their opinion, the number of securities to be included in such
registration exceeds the number that can be sold in an orderly manner in such
offering within a price range acceptable to the Holders, the Company will
include securities in such registration in the following order of priority:

                (i)     first, the Registrable Stock requested to be included in
         such registration by the Holders exercising rights pursuant to Section
         2(a) and any securities requested to be included therein by the Series
         AA Holders or the Series CC Holders, pro rata among all such holders
         based upon the number of shares of such securities requested for
         inclusion in such registration by each such holder;

                (ii)     second, any securities requested to be included therein
         by any other holders pursuant to such holders' piggyback rights, if
         any, pro rata based upon the 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 Company, if any.

         (c)      The Company shall not be required to effect more than two
Registrations pursuant to this Section 2.

         Section 3.      Piggyback Registrations.

                  (a)    As long as the Holders hold any Registrable Stock, if
the Company proposes to register any of its common equity securities or any
securities convertible into its common equity securities under the Securities
Act (other than pursuant to (i) a registration on Form S-4 or any successor
form, or (ii) an offering of securities in connection with an employee

                                       4


<PAGE>

benefit, share dividend, share ownership or dividend reinvestment plan) and the
registration form to be used may be used for the registration of Registrable
Stock, the Company shall give prompt written notice to all Holders of its
intention to effect such a registration (each a "Piggyback Notice") and, subject
to subparagraph 3(c) below, the Company shall include in such registration all
Registrable Stock with respect to which the Company has received written
requests for inclusion therein within ten days after the date of receipt of the
Piggyback Notice (a "Piggyback Registration"), unless, in the case of an
underwritten Piggyback Registration, the managing underwriters advise the
Company in writing that in their opinion, the inclusion of Registrable Stock
would adversely interfere with such offering. Nothing herein shall affect the
right of the Company to withdraw any such registration in its sole discretion.

         (b)      If a Piggyback Registration is a primary underwritten
registration and the managing underwriters advise the Company in writing that,
in their opinion, the number of securities requested to be included in such
registration exceeds the number which can be sold in an orderly manner within a
price range acceptable to the Company, the Company will include securities in
such registration in the following order of priority:

                  (i)      first, the Common Stock proposed to be registered by
         the Company;

                 (ii)     second, the securities requested to be included in
         such registration by the Series AA Holders and the Series CC Holders,
         if any, pro rata among all such holders based on the number of
         shares of such securities requested for inclusion in such registration
         by each such holder; and

                (iii)    third, the Registrable Stock requested to 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 based upon 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 Piggyback Registration is a secondary registration
on behalf of holders of the Company's securities other than the Holders of
Registrable Stock and, if the Piggyback Registration is an underwritten
Piggyback Registration and the managing underwriters advise the Company in
writing that, in their opinion, the number of securities requested to be
included in such registration exceeds the number which can be sold in an orderly
manner in such offering within a price range acceptable to the holders initially
requesting such registration, the Company will include securities in such
registration in the following order of priority:

                  (i)      first, the securities requested to 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, pro rata among all such holders based
         on the number of shares of such securities requested for inclusion in
         such registration by each such holder;

                  (ii)     second, the Registrable Stock requested to 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 among all

                                       5
<PAGE>
         such holders based on the 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 Company, if any.

                  (d)      In the case of an underwritten Piggyback
Registration, the Company will have the right to select the investment banker(s)
and manager(s) to administer the offering. If requested by the underwriters for
any underwritten offerings by Holders, under a registration requested pursuant
to Section 2(a), the Company will enter into a customary underwriting agreement
with such underwriters for such offering, to contain such representations and
warranties by the Company and such other terms which are customarily contained
in agreements of this type (including indemnification provisions). The Holders
shall be a party to such underwriting agreement and may, at their option,
require that any or all of the conditions precedent to the obligations of such
underwriters under such underwriting agreement be conditions precedent to the
obligations of Holders. The Holders shall not be required to make any
representations or warranties to or agreement with the Company or the
underwriters other than representations, warranties or agreements regarding the
Holders and the Holders' intended method of distribution and any other
representations or warranties required by law.

         Section 4.        S-3 Registration

         (a)    The Company shall use its commercially reasonable efforts to
qualify for registration on Form S-3 or any comparable or successor form or
forms. After the Company has qualified for use of Form S-3, in addition to the
rights contained in Sections 2 and 3, the Holders of Registrable Securities
shall have the right to request registrations on Form S-3 (such requests shall
be in writing and shall state the number of shares of Registrable Securities to
be disposed of and the intended methods of disposition of such shares by such
Holder or Holders). The Company shall use commercially reasonable efforts to
effect such Registration as soon as practicable (including, without limitation,
the execution of an undertaking to file post-effective amendments and
appropriate qualification under applicable state securities laws); and shall
keep such Registration continuously effective until the earlier of (i) the date
on which all shares of Registrable Stock have been sold pursuant to such
registration statement or Rule 144 and (ii) the date on which, in the reasonable
opinion of counsel to the Company, all of the Registrable Stock may be sold in
accordance with Rule 144(k), provided, however, that the Company shall not be
obligated to effect any such registration (i) if the Holders, together with the
holders of any other securities of the Company entitled to inclusion in such
registration, propose to sell Registrable Securities and such other securities
(if any) on Form S-3 at an aggregate price to the public of less than
$1,000,000, (ii) in the circumstances described in the proviso to the first
paragraph of Section 2(a), (iii) if the Company shall furnish the certification
described in the second paragraph of Section 2(a) (but subject to the
limitations set forth therein) or (iv) if, in a given twelve-month period, the
Company has effected one such registration in such period.

                Notwithstanding the foregoing, the Company shall have the
right (the "S-3 Suspension Right") (i) to defer such filing for up to 60 days or
suspend sales under any filed registration statement or (ii) defer the updating
of any filed registration statement and suspend sales thereunder at any time or
from time to time, for a period of not more than 90 days during


                                       6
<PAGE>

any period of 365 days, if the Company shall furnish to the Holders a
certificate signed by an executive officer or any trustee of the Company stating
that, in the good faith judgment of the Company, it would be detrimental to the
Company and its shareholders to file such registration statement or amendment
thereto at such time (or continue sales under a filed registration statement)
and therefore the Company has elected to defer the filing of such registration
statement (or suspend sales under a filed registration statement).

         (b) The Holders' rights under this Section 4 shall terminate upon the
earlier to occur of (i) the fifth anniversary of the fifth anniversary of the
date of the closing of the underwritten initial public offering of the Common
Stock and (ii) the date on which, in the reasonable opinion of counsel to the
Company, all of the Registrable Stock may be sold in accordance with Rule
144(k).

         Section 5.       Registration Procedures.

                 (a)      The Company shall promptly notify the Holders of the
occurrence of the following events:

                          (i)      when any registration statement relating to
         the Registrable Stock or post-effective amendment thereto filed with
         the Commission has become effective;

                          (ii)     the issuance by the Commission of any stop
         order suspending the effectiveness of any registration statement
         relating to the Registrable Stock;

                          (iii)    the suspension of an effective registration
         statement by the Company in accordance with the last paragraph of
         Section 2(a) or Section 4(a) hereof;

                          (iv)     the Company's receipt of any notification of
         the suspension of the qualification of any Registrable Stock covered by
         a registration statement for sale in any jurisdiction; and

                          (v) the existence of any event, fact or circumstance
         that results in a registration statement or prospectus relating to
         Registrable Stock or any document incorporated therein by reference
         containing an untrue statement of material fact or omitting to state a
         material fact required to be stated therein or necessary to make the
         statements therein not misleading during the distribution of
         securities.

         The Company agrees to use commercially reasonable efforts to obtain the
withdrawal of any order suspending the effectiveness of any such registration
statement or any state qualification as promptly as possible. The Holders agree
that upon receipt of any notice from the Company of the occurrence of any event
of the type described in Sections 5(a)(ii), (iii), (iv) or (v) to immediately
discontinue their disposition of Registrable Stock pursuant to any registration
statement relating to such securities until the Holders receive written notice
from the Company that such disposition may be made.

                  (b)      The Company shall provide to the Holders, at no cost
to the Holders, a copy of the registration statement and any amendment thereto
used to effect the Registration of the Registrable Stock, each prospectus
contained in such registration statement or post-effective


                                       7
<PAGE>

amendment and any amendment or supplement thereto and such other documents as
the requesting Holders may reasonably request in order to facilitate the
disposition of the Registrable Stock covered by such registration statement. The
Company consents to the use of each such prospectus and any supplement thereto
by the Holders in connection with the offering and sale of the Registrable Stock
covered by such registration statement or any amendment thereto. If the Common
Stock is listed on a national securities exchange at any time during the period
in which the Company is obligated to keep the registration statement effective
pursuant to Section 2(a), the Company shall also file a sufficient number of
copies of the prospectus and any post-effective amendment or supplement thereto
with such exchange so as to enable the Holders to have the benefits of the
prospectus delivery provisions of Rule 153 under the Securities Act.

                  (c)      The Company shall use commercially reasonable efforts
to cause the Registrable Stock covered by a registration statement to be
registered with or approved by such state securities authorities as may be
necessary to enable the Holders to consummate the disposition of such stock
pursuant to the plan of distribution set forth in the registration statement;
provided, however, that the Company shall not be obligated to take any action to
effect any such Registration, qualification or compliance pursuant to this
Section 5 in any particular jurisdiction in which the Company would become
subject to taxation or would be required to execute a general consent to service
of process in effecting such Registration, qualification or compliance unless
the Company is already subject to taxation or service in such jurisdiction.

                  (d)      Subject to the Company's Suspension Right or an S-3
Suspension Right, if any event, fact or circumstance requiring an amendment to a
registration statement relating to the Registrable Stock or supplement to a
prospectus relating to the Registrable Stock shall exist, immediately upon
becoming aware thereof the Company shall notify the Holders and prepare and
furnish to the Holders a post-effective amendment to the registration statement
or supplement to the prospectus or any document incorporated therein by
reference or file any other required document so that, as thereafter delivered
to the purchasers of the Registrable Stock, the 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.

                  (e)      The Company shall use commercially reasonable efforts
(including the payment of any listing or quotation fees) to obtain the listing
or quotation of all Registrable Stock covered by the registration statement on
each securities exchange or inter-dealer automated quotation system on which
securities of the same class or series are then listed.

                  (f)      The Company and the Holders shall use commercially
reasonable efforts to comply with the Securities Act and the Exchange Act in
connection with the offer and sale of Registrable Stock pursuant to a
registration statement, and, as soon as reasonably practicable following the end
of any fiscal year during which a registration statement effecting a
Registration of the Registrable Stock shall have been effective, to make
available to the Holders an earnings statement satisfying the provisions of
Section 11(a) of the Securities Act.

                  (g)      The Company shall cooperate with the selling Holders
to facilitate the timely preparation and delivery of certificates representing
Registrable Stock to be sold pursuant to a Registration and not bearing any
Securities Act legend; and enable certificates for such


                                       8
<PAGE>

Registrable Stock to be issued for such numbers of stock and registered in such
names as the Holders may reasonably request at least two business days prior to
any sale of Registrable Stock.

         Section 6.     Expenses of Registration. All reasonable expenses, other
than underwriting discounts and commissions and transfer taxes, incurred in
connection with registrations, filings or qualifications pursuant to Sections 2,
3, 4 and 5 hereof, including, without limitation, all registration, listing and
qualifications fees, printers and accounting fees, the fees and disbursements of
counsel for the Company and the reasonable fees and disbursements of one counsel
selected by the Holders shall be borne 50% by the Holders participating in the
particular registration and 50% by the Company.

         Section 7.     Indemnification.

                 (a)    The Company shall indemnify each Holder, each Holder's
officers and directors, and each person controlling such Holder within the
meaning of Section 15 of the Securities Act, against all expenses, claims,
losses, damages and liabilities (including reasonable legal fees and expenses),
arising out of or based on any untrue statement (or alleged untrue statement) of
a material fact contained in any registration statement or prospectus relating
to the Registrable Stock, or any amendment or supplement thereto, or based on
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,
provided, however, that the Company shall not be liable in any such case to the
extent that any such claim, loss, damage, liability or expense arises out of or
is based on any untrue statement or omission or alleged untrue statement or
omission, made in reliance upon and in conformity with information furnished in
writing to the Company by such Holder or underwriter for inclusion therein.

                 (b)    Each Holder, if Registrable Stock held by such Holder is
included in the securities as to which such registration is being effected,
shall indemnify the Company, each of its trustees and each of its officers who
signs the registration statement, each underwriter, if any, of the Company's
securities covered by such registration statement, and each person who controls
the Company or such underwriter within the meaning of Section 15 of the
Securities Act, against all claims, losses, damages and liabilities (including
reasonable legal fees and expenses) arising out of or based on any untrue
statement (or alleged untrue statement) of a material fact contained in any such
registration statement or prospectus, or any amendment or supplement thereto, or
based on 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, in each case to the extent, but only to the extent, that such untrue
statement (or alleged untrue statement) or omission (or alleged omission) is
made in such registration statement or prospectus, in reliance upon and in
conformity with information furnished in writing to the Company by such Holder
for inclusion therein.

                 (c)    Each party entitled to indemnification under this
Section 7 (the "Indemnified Party") shall give notice to the party required to
provide indemnification (the "Indemnifying Party") promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be
sought, but the omission to so notify the Indemnifying Party shall not relieve
it from any liability which it may have to the Indemnified Party pursuant to the
provisions of this Section 7 except to the extent of the actual damages suffered
by such delay in


                                       9
<PAGE>

notification. The Indemnifying Party shall assume the defense of such action,
including the employment of counsel to be chosen by the Indemnifying Party to be
reasonably satisfactory to the Indemnified Party, and payment of expenses. The
Indemnified Party shall have the right to employ its own counsel in any such
case, but the legal fees and expenses of such counsel shall be at the expense of
the Indemnified Party, unless the employment of such counsel shall have been
authorized in writing by the Indemnifying Party in connection with the defense
of such action, or the Indemnifying Party shall not have employed counsel to
take charge of the defense of such action or the Indemnified Party shall have
reasonably concluded that there may be defenses available to it or them which
are different from or additional to those available to the Indemnifying Party
(in which case the Indemnifying Party shall not have the right to direct the
defense of such action on behalf of the Indemnified Party), in any of which
events such fees and expenses shall be borne by the Indemnifying Party. No
Indemnifying Party, in the defense of any such claim or litigation, shall,
except with the consent of each Indemnified Party, consent to entry of any
judgment or enter into any settlement which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Party
of a release from all liability in respect to such claim or litigation.

                  (d)      If the indemnification provided for in this Section 7
is unavailable to a party that would have been an Indemnified Party under this
Section 7 in respect of any expenses, claims, losses, damages and liabilities
referred to herein, then each party that would have been an Indemnifying Party
hereunder shall, in lieu of indemnifying such Indemnified Party, contribute to
the amount paid or payable by such Indemnified Party as a result of such
expenses, claims, losses, damages and liabilities in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party on the one
hand and such Indemnified Party on the other in connection with the statement or
omission which resulted in such expenses, claims, losses, damages and
liabilities, as well as any other relevant equitable considerations. The
relative fault 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
Indemnifying Party or such Indemnified Party and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company and each Holder agree that it would not be
just and equitable if contribution pursuant to this Section were determined by
pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to above in this Section 7(d).

                  (e)      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.

                  (f)      In no event shall any Holder be liable for any
expenses, claims, losses, damages or liabilities pursuant to this Section 7 in
excess of the net proceeds to such Holder of any Registrable Stock sold by such
Holder pursuant to the registration statement in question.

         Section 8.     Information to be Furnished by Holders. Each Holder
shall furnish to the Company such information as the Company may reasonably
request and as shall be required in connection with the Registration and related
proceedings referred to in Section 2 or Section 3 hereof. If any Holder fails to
provide the Company with such information within 10 days of


                                       10
<PAGE>

receipt of the Company's request, the Company's obligations under Section 2 or
Section 3 hereof, as applicable, with respect to such Holder or the Registrable
Stock owned by such Holder shall be suspended until such Holder provides such
information.

         Section 9.        Rule 144 Sales.

                  (a)      The Company shall use its commercially reasonable
efforts to file the reports required to be filed by the Company under the
Exchange Act, so as to enable any Holder to sell Registrable Stock pursuant to
Rule 144 under the Securities Act.

                  (b)      In connection with any sale, transfer or other
disposition by any Holder of any Registrable Stock pursuant to Rule 144 under
the Securities Act, the Company shall cooperate with such Holder to facilitate
the timely preparation and delivery of certificates representing Registrable
Stock to be sold and not bearing any Securities Act legend, and enable
certificates for such Registrable Stock to be for such number of shares and
registered in such names as the selling Holder may reasonably request at least
two business days prior to any sale of Registrable Stock.

         Section 10.    Assignment of Registration Rights. The rights of the
Holders hereunder, including the right to have the Company register Registrable
Stock pursuant to this Agreement, shall be automatically assignable by each
Holder to any transferee of all or any portion of the shares of Preferred Stock
or the Registrable Stock if: (i) the Holder agrees in writing with the
transferee or assignee to assign such rights, and a copy of such agreement is
furnished to the Company after such assignment, (ii) the Company is furnished
with written notice of (a) the name and address of such transferee or assignee,
and (b) the securities with respect to which such registration rights are being
transferred or assigned, (iii) following such transfer or assignment, the
further disposition of such securities by the transferee or assignee is
restricted under the Securities Act and applicable state securities laws, (iv)
the transferee or assignee agrees in writing for the benefit of the Company to
be bound by all of the provisions contained herein, and (v) such transfer of the
Registered Stock shall have been made in accordance with the applicable
requirements of Section 5(f) of the Purchase Agreement.

         Section 11.       Miscellaneous.

                  (a)      Governing Law; Submission to Jurisdiction. This
Agreement shall be governed by, and construed and enforced in accordance with,
the laws of the State of Delaware.

                  (b)      WAIVER OF JURY TRIAL. THE COMPANY AND THE INVESTORS
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.

                  (c)      Entire Agreement. This Agreement constitutes 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.


                                       11
<PAGE>

                  (d)      Amendments and Waivers. No provision of this
Agreement may be waived other than by an instrument in writing signed by the
party to be charged with enforcement and no provision of this Agreement may be
amended other than by an instrument in writing signed by the Company and each
Investor.

                  (e)      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 follows: (a) if to an Investor (other than Microsoft), at the Investor's
address or fax number set forth below its signature hereon, or at such other
address or fax number as the Investor shall have furnished to the Company in
writing, or (b) if to any assignee or transferee of an Investor, at such address
or fax number as such assignee or transferee shall have furnished the Company in
writing, (c) if to Microsoft or the Company, at the address set forth below. Any
notice or other communication required to be given hereunder to a Holder in
connection with a registration may instead be given to the designated
representative of such Holder.

                  If to the Company or any Other Investor:

                  CommVault Systems, Inc.
                  2 Crescent Place
                  Oceanport, New Jersey 07757-0900
                  Facsimile: (732) 870-4514
                  Attn: N. Robert Hammer

                  with a copy to:

                  Mayer, Brown, Rowe & Maw LLP
                  71 South Wacker Drive
                  Chicago, IL 60606-4637
                  Facsimile: (312) 701-7711
                  Attn: Philip J. Niehoff

                  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.
                  11 Madison Avenue
                  New York, New York 10010


                                       12
<PAGE>

                  Attention: Dan Pulver
                  Fax: (212) 538-2989

                  and to:

                  DLJ Capital Corporation
                  DLJ First ESC, L.P.
                  DLJ ESC II, L.P.
                  Sprout Entrpreneurs' Fund, L.P.
                  Sprout Growth II, L.P.
                  Sprout Capital VII, L.P.
                  Sprout Capital IX, L.P.
                  Sprout IX Plan Investors, L.P.
                  Sprout CEO Fund L.P.
                  3000 Sand Hill Road
                  Building 3, Suite 170
                  Menlo Park, California 94025
                  Attention: Keith B. Geeslin
                  Fax: (650)234-2779

                  with a copy to:

                  Davis Polk & Wardwell
                  450 Lexington Avenue
                  New York, New York 10017
                  Attention: George R. Bason, Jr.
                  Fax: (212) 450-3340

                  and to:

                  Schulte Roth & Zabel LLP
                  919 Third Avenue
                  New York, New York 10022
                  Attention: Phyllis A. Schwartz
                  Fax: (212) 593-5955



                  (f)      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.

                  (g)      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.

                  (h)      Headings. The headings 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.


                                       13
<PAGE>

                  (i)      Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the parties and their successors and
assigns. Except as provided herein, neither the Company nor any Investor shall
assign this Agreement or any rights or obligations hereunder.

                  (j)      Equitable Relief. The Company and the Holders
acknowledge that a breach by it of its obligations hereunder will cause
irreparable harm to the other party by vitiating the intent and purpose of the
transactions contemplated hereby. Accordingly, the Company and the Holders
acknowledge that the remedy at law for a breach of its obligations hereunder
will be inadequate and agree, in the event of a breach or threatened breach by
the Company or the Holders of the provisions of this Agreement, that a party
shall be entitled, in addition to all other available remedies, (i) to an
injunction restraining any breach and requiring immediate issuance and transfer,
without the necessity of showing economic loss and without any bond or other
security being required, and (ii) to compel specific performance of another
party under this Agreement in accordance with the terms and conditions of this
Agreement in any court of the United States or any State thereof having
jurisdiction.

                  (k)      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.

                  (l)      Further Assurances. Each party shall do and perform,
or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and
documents, as the other party may reasonably request in order to carry out the
intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

                  (m)      Third Party Beneficiaries. 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.

                            [Signature pages follow.]

                                       14
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.

                                        COMMVAULT SYSTEMS, INC.



                                        By:
                                           ------------------------------------
                                           Name:  N. Robert Hammer
                                           Title: President



                                        DLJ MERCHANT BANKING PARTNERS, L.P.

                                        By: DLJ Merchant Banking, Inc.
                                            Managing General Partner

                                        By:
                                           ------------------------------------
                                           Name:
                                           Attorney-In-Fact


                                        DLJ INTERNATIONAL PARTNERS, C.V.

                                        By: DLJ Merchant Banking, Inc.
                                        Advisory General Partner


                                        By:
                                           ------------------------------------
                                           Name:
                                           Attorney-In-Fact


                                        DLJ OFFSHORE PARTNERS, C.V.

                                        By: DLJ Merchant Banking, Inc.
                                        Advisory General Partner


                                        By:
                                           ------------------------------------
                                            Name:
                                            Attorney-In-Fact




<PAGE>



                                        DLJ MERCHANT BANKING FUNDING, INC.


                                        By:
                                           ------------------------------------
                                            Name:
                                            Attorney-In-Fact




<PAGE>


                                        DLJ CAPITAL CORPORATION


                                        By:
                                           ------------------------------------
                                            Name:
                                            Attorney-In-Fact


                                        DLJ FIRST ESC, L.P.
                                        By:  DLJ LBO Management Corporation,
                                         its General Partner


                                        By:
                                           ------------------------------------
                                            Name:
                                            Attorney-In-Fact


                                        DLJ ESC II, L.P.
                                        By:  DLJ LBO Management Corporation,
                                         its General Partner

                                        By:
                                           ------------------------------------
                                            Name:
                                            Attorney-In-Fact


                                        SPROUT GROWTH II, L.P.


                                        By: DLJ Capital Corporation
                                        Managing General Partner

                                        By:
                                           ------------------------------------
                                            Name:
                                            Attorney-In-Fact
<PAGE>

                                        SPROUT CAPITAL VII, L.P.
                                        By: DLJ Capital Corporation
                                        Managing General Partner

                                        By:
                                           ------------------------------------
                                            Name:
                                            Attorney-In-Fact


                                        SPROUT CAPITAL IX, L.P.
                                        By: DLJ Capital Corporation
                                        Managing General Partner


                                        By:
                                           ------------------------------------
                                            Name:
                                            Attorney-In-Fact


                                        SPROUT IX PLAN INVESTORS, L.P.
                                        By: DLJ Capital Corporation
                                        Managing General Partner


                                        By:
                                           ------------------------------------
                                            Name:
                                            Attorney-In-Fact


                                        SPROUT CEO FUND L.P.
                                        By: DLJ Capital Corporation
                                        Managing General Partner


                                        By:
                                           ------------------------------------
                                            Name:
                                            Attorney-In-Fact



<PAGE>



                                        SPROUT ENTREPRENEURS' FUND
                                        By: DLJ Capital Corporation
                                        Managing General Partner


                                        By:
                                           ------------------------------------
                                            Name:
                                            Attorney-In-Fact



                                        ---------------------------------------
                                        N. ROBERT HAMMER


                                        ---------------------------------------
                                        LOU MICELI







<PAGE>




</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.18
<SEQUENCE>13
<FILENAME>y24537a5exv10w18.txt
<DESCRIPTION>EX-10.18: SOFTWARE LICENSE AGREEMENT
<TEXT>
<PAGE>
                                                                   EXHIBIT 10.18

[***] INDICATES THAT TEXT HAS BEEN OMITTED WHICH IS THE SUBJECT OF A
CONFIDENTIAL TREATMENT REQUEST. THIS TEXT HAS BEEN FILED SEPARATELY WITH THE
SEC.


                          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     RIGHTS TO SOURCE CODE. CommVault and DSI Technology Escrow Services,
         Inc. are parties to a Flexsafe Escrow Agreement (the "Escrow
         Agreement") dated December 20, 2001. Contemporaneously with the
         execution of this Agreement Dell will be added as a third party
         beneficiary thereto.

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).

                                       6
<PAGE>

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:

                  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


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                                       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.
                                         ---------------------------------------

     ---------------------------------------------------------------------------

11.  Is there an EXPORT version of the software named above?
                                                             -------------------

THIS FORM COMPLETED BY:

Name:                       Title:                    Signature:
      --------------------         ------------------           ----------------

Date:                 Phone #:
     ----------------         ---------------------


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                                       10
<PAGE>

                               PRICING SUPPLEMENT
                                     TO THE
                          SOFTWARE LICENSING AGREEMENT
                                     BETWEEN
                                      DELL
                                        &
                             COMMVAULT SYSTEMS, INC.

<Table>
<Caption>

SKU DESCRIPTION                                                                  [***]       [***]        MSRP        DISCOUNT
====================================================================================================================================
<S>                                                                              <C>         <C>          <C>         <C>
CommServe                                                                        [***]       [***]        [***]        [***]

WINDOWS/LINUX/NETWARE Media Agent (SAN or LAN) with 1 OS IDA                     [***]       [***]        [***]        [***]

LAN Drive Pack with SLMS (per drive)                                             [***]       [***]        [***]        [***]

SAN Drive Pack with DDS and SLMS (per drive)                                     [***]       [***]        [***]        [***]

DDO: direct to disk option (per media agent)                                     [***]       [***]        [***]        [***]

OS IDA-WINDOWS/NETWARE/LINUX                                                     [***]       [***]        [***]        [***]

Application IDA-WINDOWS                                                          [***]       [***]        [***]        [***]

OS IDA-UNIX                                                                      [***]       [***]        [***]        [***]

Tier I UNIX Media Agent (SAN or LAN) with 1 OS IDA                               [***]       [***]        [***]        [***]

Tier I UNIX Media Agent (SAN or LAN) with 1 OS IDA                               [***]       [***]        [***]        [***]

Tier I Application IDA-UNIX                                                      [***]       [***]        [***]        [***]

Tier II Application IDA-UNIX                                                     [***]       [***]        [***]        [***]

GalaxyExpress LAN Suite includes:                                                [***]       [***]        [***]        [***]

     GalaxyExpress (key code upgrade to Galaxy)

     1 Windows, Storage Server2003, Linux or Novell MediaAgent included

     Includes support for up to 6 drive library for list of Dell supported
drives/libraries

     3 FS Agents (can purchase more FS agents from list above) for Windows,
UNIX, Linux or Novell

     1 Windows Application iDA (can purchase more Windows (only) APP agents from
list above)

     Max 25 total clients (agents), no san spt + other Gexpress limitations

Upgrade key to unlock GalaxyExpress functionality to Galaxy                                               [***]        [***]
====================================================================================================================================
</Table>


Dell Confidential
                                       11
<PAGE>
                                   SCHEDULE C
                               ENTERPRISE SUPPORT

1.0      PURPOSE

         This Schedule C describes the support and training terms and conditions
         required by Dell.

         The working relationship between Dell and the Supplier in addressing
         different levels of customers' problems (severity incidents) should be
         a consistent, smooth, understandable process. Dell customers should
         perceive a seamless and efficient supporting organization that can meet
         their expectations on all levels of support issues with:

                  o        A sense of urgency

                  o        A timely resolution

                  o        Concern for the customer's situation

2.0      DEFINITIONS:

         Severity 1 Support Request

         A customer problem reported to Dell where immediate Supplier engagement
         and assistance is required in providing resolution. A Severity 1
         situation is when any of the following conditions occur:

                  o        A problem, which critically impacts the end
                           customer's ability to do business.

                  o        A significant number of users of the system and/or
                           network are currently unable to perform their tasks
                           as necessary.

                  o        The system and/or network are down or severely
                           degraded.

                  o        A system or major application is totally down.

         Severity 2 Support Request

         A customer problem reported to Dell where urgent Supplier engagement
         and assistance is required in providing resolution. A Severity 2
         situation is when any of the following conditions occur:

                  o        A problem which impacts the end customer's ability to
                           do business, the severity of which is significant and
                           may be repetitive in nature.

                  o        A function of the system, network or product is
                           impacted which impedes the customer from meeting
                           daily production deliverables.

         Severity 3 Support Request

         A customer problem reported to Dell where timely Supplier engagement
         and assistance is required in providing resolution. A Severity 3
         situation is when any of the following conditions occur:

                  o        A problem, which negligibly impacts our customer's
                           ability to do business.

                  o        May include questions and/or general consultation.

3.0      SUPPLIER SUPPORT INCIDENT RESPONSE BY SEVERITY


         The Incident Severity levels defined below are utilized in establishing
         the problem impact to the customer upon problem receipt and will be
         used to set expectations between the parties of this agreement.
         Severities are established by Dell during escalation to the Supplier
         and are subject to change during the life of each specific incident.


         3.1      SEVERITY 1: [***]

         3.2      SEVERITY 2: [***]

         3.3      SEVERITY 3: [***]

4.0      TECHNICAL SUPPORT PROCEDURES

         [***].

         Where the vendor performing installation and Professional Service
         Offerings of their product, it is required that they have extensive
         knowledge of the following hardware;


Dell Confidential
                                       12
<PAGE>

         o        Dell Servers and PowerVault Storage Products

         o        Dell|EMC SAN environments, including switches, hubs and HBAs

         o        Other major vendor's tape backup products.

         LEVEL 1 SUPPORT means the services provided by a product trained
         Customer Support Engineer in response to an End User's initial
         notification of a suspected Problem. These services include, but may
         not be limited to, call logging, entitlement verification, and closing
         the matter with the End User after Problem Resolution. If escalation is
         required, all necessary information will be gathered. Upon completion
         of information gathering, escalation will occur to a Level 2 Support
         Engineer.

         LEVEL 2 SUPPORT means the services provided by one or more trained
         senior Customer Service Engineers ("CSEs") for detailed installation,
         configuration information, integration information, compatibility
         information, Problem isolation, troubleshooting, and determination of
         whether a Problem is reproducible, with the intent to resolve the End
         User's Problem. All resources including documentation, Knowledge Base
         and/or Patch matrix should be consulted before escalation to a Level 3
         Support engineer.

         LEVEL 3 SUPPORT means the services provided by one or more CommVault
         senior CSEs working in conjunction with development engineers to
         resolve Problems in the Software that cannot be resolved with Level 2
         Support or are determined to be, or are highly probable to be, the
         result of a design, implementation or product defect. The problem may
         also be related to compatibility issues due to complex interaction
         between the Software and a third party vendor's product.


         When contacted for support by Dell, Supplier will respond according to
         the support collaboration targets and guidelines in Section 5.0 below.
         Both Dell and the Supplier will specify initial Technical Escalation
         Contacts in ATTACHMENT 1, which may be updated from time to time by
         mutual written agreement of the parties. Such written agreement may be
         in the form of electronic mail.


         4.1      TECHNICAL SUPPORT ENGAGEMENT

                  To ensure a smooth transition during technical collaboration
         or escalation, it is essential that all parties remain engaged until
         the next level is fully engaged, including access to all relevant
         contact information and technical activity to date.

         4.2      SOLUTION DELIVERY

                  [***].

         4.3      THIRD PARTY DEPENDENCY

                  In the event that a Supplier is dependent upon a third party
         to provide support for a product or product component, it is incumbent
         upon the Supplier to establish an agreement with the third party, such
         that the Supplier is capable of meeting the expectations identified in
         this SLA by working through the 3rd party.

         4.4      UNRESOLVED SEVERITY 1 PROBLEMS (SOFTWARE)

                  In the event of an unresolved Severity 1 problem for a
         customer or Dell, that has not been resolved within the 'Resolution
         Target' timeframe defined below in Section 5.0, Supplier will [***].

5.0      SUPPORT COLLABORATION GUIDELINES AND RESOLUTION REQUIREMENTS

         This section describes the collaboration target times. These
         REQUIREMENTS ensure that additional resources are obtained in a
         consistent, timely manner. These requirements are intended to minimize
         customer impact and incident resolution time.

         The following chart indicates, by severity, the Technical
         Collaboration/incident resolution requirements Supplier must meet in
         addressing customer incidents (the "RESOLUTION REQUIREMENTS"):


Dell Confidential

                                       13
<PAGE>

RESOLUTION OF MUTUAL CUSTOMER CASES

     Each party shall endeavor to respond to and use commercially reasonable
     efforts to provide Case Remedies in a timely manner in accordance with the
     Priority Level identified in Exhibit C, and in accordance with that party's
     support or maintenance agreement with such Mutual Customer.

     Dell will use every effort available to resolve issues involving Dell
     hardware and VENDOR software.

     Partnership of Escalated issues

     In certain cases the customer may lack a clear understanding whether the
     issue lies with THE VENDOR or Dell. In cases such as these Dell or THE
     VENDOR will work jointly to resolve the issue. THE VENDOR and Dell will
     provide real-time experts to work until resolution to the escalated issue
     has been met. THE VENDOR and Dell are responsible for providing the
     following for all Sev 1 and Sev 1-A issues:

     1. [***].


     2. THE VENDOR will provide engineering contacts for Dell's Global Product
     Support Engineering team. Dell will also provide Engineering contacts to
     THE VENDOR for issues that involve Dell products under the same
     guidelines.( For long term sustaining issues). Requests from the customer
     for root cause analysis shall be completed within [***] by Dell and THE
     VENDOR.



     3. Depending on Severity of issue THE VENDOR will move the escalated
     issues to the needed level. See table for timelines below.


<Table>
<Caption>

                                                SEV 1-A        SEV 1          SEV 2        SEV 3
                   ----------------------------------------------------------------------------------------
<S>                                             <C>            <C>            <C>          <C>
                        THE VENDOR T1           [***]          [***]          [***]        [***]
                        THE VENDOR T2           [***]          [***]          [***]        [***]
                        THE VENDOR Engineering  [***]          [***]          [***]        [***]

</Table>

     4. If the need arises for on-site assistance, both Dell and THE VENDOR will
     move experts on-site with a goal [***]. Due to the critical nature of these
     escalations Dell and THE VENDOR will work out any costs associated with
     these on-site visits on the backend. Need to determine what their hourly
     cost is.

     5. Both Dell and the Vendor will provide single points of contacts on all
     Severity 1-A and 1 issues. Dell utilizes a Technical Account Manager as the
     single point of contact for areas involving severe escalations.

     6. Dell and the Vendor will provide a list of executive contacts that will
     be available [***] for engagement in escalations where process breakdowns
     are occurring.

     7. Executives, Managers and technical representatives from both companies
     will participate in joint conference calls with the customer during
     critical outages.

     8. Dell and the Vendor will meet via conference call on a quarterly basis
     to discuss performance on all escalated issues between the two companies.

     9. THE VENDOR and Dell will provide 7X24 original ownership on all Sev 1-A
     and Sev 1 issues (Sev 1 and Sev 1-A cases cannot be transferred to other
     regions until the issues has stabilized).

      5.1 STATUS UPDATES

               Dell requires STATUS updates from the Supplier based on incident
      severity. Unless otherwise agreed to, the schedule for status updates are
      as follows.

               Severity 1 = [***]
               Severity 2 = [***]
               Severity 3 a= [***]

      These are recommended feedback intervals. Updating of S1 incidents every
      [***] for customer review may inhibit the speed of resolution of the
      incident. Dell and Supplier may agree on an alternative update time, per
      incident.

      For all Incidents, status will include WHAT the next action will
      constitute and WHEN it will occur. If the next action is not delivered as
      committed, a new status will be sent, prior to the deadline to reset the
      expectations. Some additional clarification of roles/responsibilities is
      as follows:

          o    [***].

Dell Confidential
                                       14
<PAGE>

     o    [***].

     o    [***].

     o    [***]:

          1.   [***], or

          2.   [***], and

          3.   [***].

     o    [***]

     o    See ATTACHMENT 1 for Management Escalation contact names and telephone
          numbers for Dell and Supplier.

         5.2  NON-INCIDENT SPECIFIC ENGAGEMENT OF THE SUPPLIER

                  In some circumstances Dell may require engagement of the
         Supplier on issues other than a specific customer event. Supplier
         agrees to work with Dell in good faith to address issues including,
         but not limited to, Quality issues, Process improvements and
         Information requests.

6.0      SUPPORT MANAGEMENT ESCALATION (NOTIFICATION)

         6.1      ESCALATION CONDITIONS

                  Conditions that require escalating the incident to a higher
         level of management include, but are not limited to, the following:

                  6.1.1    Established timeframe exceeded (notification to
                           management)

                           o    The agreed RESOLUTION REQUIREMENT time frame has
                                passed

                  6.1.2    Exceptional circumstances (management decision or
                           action required). Some examples:

                           o   Incident data is insufficient to start resolution

                           o   The promised resolution to customer time line has
                               passed

                           o   The resolution resource is insufficient

                           o   The resolution does not resolve customer's
                               problem

                           o   The resolution does not satisfy customer's
                               requirements

7.0      SUPPORT RESOLUTION REQUIREMENTS PERFORMANCE

         Dell and the Supplier will monitor their own performance against the
         expected incident activity and resolution timeframes for each severity
         level of incident.

                  Dell Performance Measures include without limitation:

                           o   Incoming incident rate (known/unknown solution)

                           o   Backlog

                           o   # Resolved within guidelines

                           o   Total Time to Solution Provided

                           o   # of transfers to Supplier

                           o   # of problem re-occurrences -- Quality

                  Supplier performance measures include without limitation:

                           o   Total # resolved within guidelines

                           o   # Rejected (incomplete info. or problem known)

                           o   Total Time to Problem Fix submitted


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                                       15
<PAGE>

                           o   # of problem Re-occurrence - Quality

         7.1      SUPPORT EVALUATION

                  Following commercial release by Dell of the Supplier's
         product, and no less frequently than twice per year, representatives
         from each party will meet to review the performance of, and recommend
         improvements regarding, the technical support provided by Supplier to
         Dell, and the technical support provided by Dell to its customers,
         under this Agreement. Either party can request a special meeting, or
         may call for a Root Cause Analysis and Closed Loop Corrective Action
         Plan in the event that such party has substantial concerns regarding a
         party's performance under this Schedule C or results are not meeting
         the service levels stated in SCHEDULE B to the Agreement (Quality
         Agreement).

8.0     SUPPORT TRAINING REQUIREMENTS

         8.1      CONTENT

                  Supplier shall train a reasonable number of Dell technical
         support personnel (and Dell-authorized third party support team
         members, if applicable) at no additional expense to Dell. Supplier will
         provide this training at Dell's regional offices worldwide to set up,
         install, configure and operate the Supplier product (the "Initial
         Training"). This Initial Training is intended to provide information
         required to diagnose and resolve hardware or software issues. Supplier
         will provide an additional in-depth technical training class at
         mutually agreed upon times and locations.

         The Initial Training will cover (at a minimum) the following
         information related to the Dell version of the Supplier product design:

         o    Modular flow code walk-thru

         o    Engineering specifications

         o    New technology primer

         o    Error handling

         o    Trouble-shooting steps/procedures

         o    Diagnostic capability

         o    Delta's between the OEM or "Dell" version and retail version

         o    Basic product installation/re-installation procedures

         o    Driver installations/setup procedures

         o    Symptom-based Troubleshooting Tree/Process with isolation steps
              and recommended corrective actions

         o    Known issues list

         o    Disassembly/Reassembly procedures

         o    Product White Papers if available

         o    Technical Case Studies based on tech support calls seen by the
              Supplier

         8.2      TRAINING PLAN

                  Supplier shall provide a written training plan to Dell not
         less than ninety (90) days prior to Dell's commercial introduction of
         the initial Supplier deliverables under this Agreement.

         At a minimum, the training plan will include:

         o    Recommended course outline and objectives to be approved by Dell

         o    Course timeline based on course outline

         o    Target audience and expected prerequisites

         o    Technical requirements for training environment

         o    Instructor resumes demonstrating working proficiency with the
              product, including working field experience

         o    Product FAQ's attachment

         o    Supplier product URLs available to the public

         o    List of the training deliverables

         o    Special equipment/tools required for Supplier training delivery

         o    List of all training contacts, including main point of contact


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                                       16
<PAGE>

         8.3      TRAINING COURSEWARE

                  Supplier shall provide a draft softcopy of all training
         courseware not less than sixty (60) days prior to Dell's commercial
         introduction of the initial Supplier Deliverables under this Agreement.
         Supplier shall provide hardcopy of any required training materials for
         each student at the time of training. Dell will retain the right to
         reproduce and distribute all training materials to Dell employees and
         Dell-authorized third party support team members.

         8.4      TRAINING DELIVERY

                  Such training shall be completed not less than thirty (60)
         days prior to Dell's commercial introduction of the initial Supplier
         Deliverables under this Agreement. Additionally, training shall be
         provided within thirty (30) days prior to each new release, major
         revision and Update release at no expense to Dell at Dell's worldwide
         regional offices.

         8.5      TROUBLESHOOTING DOCUMENTATION

                  Supplier shall provide softcopy documentation describing
         without limitation: (a) all known error codes and messages, (b) all
         known failure conditions and potential symptoms, (c) steps to take in
         isolating a failure to the proper root cause, and (d) recommended
         action(s) to correct.

         8.6      VIDEO PRESENTATION

                  Supplier hereby authorizes Dell to videotape any of the
         training sessions to be performed by Supplier and hereby authorizes
         Dell to use such videotapes for any additional training of Dell
         personnel, Dell Resellers, Dell Subcontractors or Dell-authorized third
         party support team members during the term of this Agreement.

         8.7      SUBJECT MATTER EXPERT

                  Supplier shall make reasonably available to Dell a subject
         matter expert who will be available to review modified Product
         Documentation and/or editing of videos regarding the Product(s) for
         technical and informational accuracy.

9.0  MUTUAL TRAVEL AGREEMENT

      Dell and Supplier agree to jointly travel on-site to a customer
      environment experiencing a problem that cannot be isolated or duplicated
      remotely, if customer circumstances so warrant. Each party agrees to
      initially bear its own costs that might arise in case of on-site travel.
      If the reported problem is determined to be attributable to causes other
      than Supplier's product(s), Dell will reimburse Supplier for its
      reasonable out-of-pocket expenses incurred in connection with such on-site
      support.

10.0  LICENSED PRODUCT USE FOR SUPPORT (SOFTWARE)

      Supplier will provide Dell royalty-free copies of all supported software
      products and documentation for the purpose of training and on-going
      support.

11.0  SUPPORT PROCESSES

      Both Dell and Supplier will document and maintain support contact detail,
      problem reporting and statusing procedures, management escalation
      contacts, problem resolution process flows and service level expectations
      in ATTACHMENT 1. Additionally, detail should be included in SCHEDULE B to
      the Agreement (Quality Agreement) that identifies problem-tracking
      systems, problem documentation requirements for incident creation, and
      problem support web sites available. This operational detail will be
      utilized by both parties to ensure an efficient and high quality support
      relationship for end customers.

12.0  CONTINUING SUPPORT AVAILABILITY (SOFTWARE)

      Supplier's technical support will be available to Dell for code-level
      issues on (a) all software releases, including all relevant software
      versions and updates available for sale and (b) for the immediate prior
      software release, including the most recent software version and update.
      Supplier's technical support will be available to Dell for critical
      problems at a minimum on the previous software release for the longer of
      (i) the period of Supplier's warranty to Dell, or (b) 12 months after
      current release is commercially available for sale to Dell customers.

13.0  SUPPORT SURVIVAL

      Termination of this Agreement regardless of the reason shall not relieve
      either party from its support obligations hereunder arising prior to such
      termination. Rights and obligations defined in this Schedule that by their
      nature should survive will remain in effect after termination or
      expiration of the Agreement. Supplier will continue to provide Support


Dell Confidential
                                       17
<PAGE>

      to Dell for no less than three (3) years after contract termination or
      expiration. Should the parties agree to terminate the Agreement, they will
      work together to develop a mutually agreeable plan to provide continued
      services to affected Dell customers.

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
                                       18




</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.19
<SEQUENCE>14
<FILENAME>y24537a5exv10w19.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                                                           4/26/2004

                                     Page 1
<PAGE>





         "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                                                           4/26/2004

                                     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                                                           4/26/2004

                                     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                                                           4/26/2004

                                     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                                                           4/26/2004

                                     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                                                           4/26/2004

                                     Page 6
<PAGE>

                                    EXHIBIT B
                               PRICING SUPPLEMENT
                        TO THE SOFTWARE LICENSE AGREEMENT
                           BETWEEN DELL PRODUCTS L.P.
                           AND COMMVAULT SYSTEMS INC.

<TABLE>
<CAPTION>

SKU DESCRIPTION                                                                 [***]      [***]         MSRP      DISCOUNT
---------------                                                                 -----      -----         ----      --------
<S>                                                                             <C>        <C>           <C>       <C>

CommServe                                                                       [***]      [***]      $    [***]     [***]
WINDOWS/LINUX/NETWARE Media Agent (SAN or LAN) with 1 OS IDA                    [***]      [***]      $    [***]     [***]
LAN Drive Pack with SLMS (per drive)                                            [***]      [***]      $    [***]     [***]
SAN Drive Pack with DDS and SLMS (per drive)                                    [***]      [***]      $    [***]     [***]
DDO:  direct to disk option (per media agent)                                   [***]      [***]      $    [***]     [***]
OS IDA-WINDOWS/NETWARE/LINUX                                                    [***]      [***]      $    [***]     [***]
Application IDA-WINDOWS                                                         [***]      [***]      $    [***]     [***]
OS IDA-UNIX                                                                     [***]      [***]      $    [***]     [***]
Tier I UNIX Media Agent (SAN or LAN) with 1 OS IDA                              [***]      [***]      $    [***]     [***]
Tier II UNIX Media Agent (SAN or LAN) with 1 OS IDA                             [***]      [***]      $    [***]     [***]
Tier 1 Application IDA-UNIX                                                     [***]      [***]      $    [***]     [***]
Tier II Application IDA-UNIX                                                    [***]      [***]      $    [***]     [***]
 GalaxyExpress LAN Suite includes:                                              [***]      [***]      $    [***]     [***]
     GalaxyExpress (key code upgrade to Galaxy)
     1 Windows, Storage Server2003, Linux or Novell MediaAgent included
     Includes support for up to 6 drive library for list of Dell supported
     drives/libraries
     3 FS Agents (can purchase more FS agents from list above) for Windows, UNIX, Linux
     or Novell
     1 Windows Application iDA (can purchase more Windows (only) APP agents from list
     above)
     Max 25 total clients (agents), no san spt + other Gexpress limitations
Upgrade key to unlock GalaxyExpress functionality to Galaxy                                           $    [***]     [***]

<CAPTION>
                                                                                   DELL     1YR UPDATE   3YR UPDATE
SKU DESCRIPTION                                                                  SW COST    PROTECTION   PROTECTION
---------------                                                                  -------    ----------   ----------
<S>                                                                             <C>         <C>          <C>

CommServe                                                                       $    [***]  $    [***]   $    [***]
WINDOWS/LINUX/NETWARE Media Agent (SAN or LAN) with 1 OS IDA                    $    [***]  $    [***]   $    [***]
LAN Drive Pack with SLMS (per drive)                                            $    [***]  $    [***]   $    [***]
SAN Drive Pack with DDS and SLMS (per drive)                                    $    [***]  $    [***]   $    [***]
DDO:  direct to disk option (per media agent)                                   $    [***]  $    [***]   $    [***]
OS IDA-WINDOWS/NETWARE/LINUX                                                    $    [***]  $    [***]   $    [***]
Application IDA-WINDOWS                                                         $    [***]  $    [***]   $    [***]
OS IDA-UNIX                                                                     $    [***]  $    [***]   $    [***]
Tier I UNIX Media Agent (SAN or LAN) with 1 OS IDA                              $    [***]  $    [***]   $    [***]
Tier II UNIX Media Agent (SAN or LAN) with 1 OS IDA                             $    [***]  $    [***]   $    [***]
Tier 1 Application IDA-UNIX                                                     $    [***]  $    [***]   $    [***]
Tier II Application IDA-UNIX                                                    $    [***]  $    [***]   $    [***]
 GalaxyExpress LAN Suite includes:                                              $    [***]  $    [***]   $    [***]
     GalaxyExpress (key code upgrade to Galaxy)
     1 Windows, Storage Server2003, Linux or Novell MediaAgent included
     Includes support for up to 6 drive library for list of Dell supported
     drives/libraries
     3 FS Agents (can purchase more FS agents from list above) for Windows, UNIX, Linux
     or Novell
     1 Windows Application iDA (can purchase more Windows (only) APP agents from list
     above)
     Max 25 total clients (agents), no san spt + other Gexpress limitations
Upgrade key to unlock GalaxyExpress functionality to Galaxy                     $    [***]  $    [***]   $    [***]
</TABLE>


Confidential                                                           4/26/2004

                                     Page 7
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.20
<SEQUENCE>15
<FILENAME>y24537a5exv10w20.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         CommServe                                                  [***]      [***]  $   [***]   [***]  $   [***]  $    [***]
SKU2         WINDOWS/LINUX/NETWARE Media Agent (SAN or LAN)
               with 1 OS IDA                                            [***]      [***]  $   [***]   [***]  $   [***]  $    [***]
SKU3         LAN Drive Pack with SLMS (per drive)                       [***]      [***]  $   [***]   [***]  $   [***]  $    [***]
SKU4         LAN Drive Pack with DDS and SLMS (per drive)               [***]      [***]  $   [***]   [***]  $   [***]  $    [***]
SKU5         DDO:  direct to disk option (per media agent)              [***]      [***]  $   [***]   [***]  $   [***]  $    [***]
SKU6         OS IDA WINDOWS/NETWARE/UNIX                                [***]      [***]  $   [***]   [***]  $   [***]  $    [***]
SKU7         Application IDA-WINDOWS                                    [***]      [***]  $   [***]   [***]  $   [***]  $    [***]
SKU8         OS IDA-UNIX                                                [***]      [***]  $   [***]   [***]  $   [***]  $    [***]
SKU9         Tier I UNIX Media Agent (SAN or LAN) with 1 OS IDA         [***]      [***]  $   [***]   [***]  $   [***]  $    [***]
SKU10        Tier II UNIX Media Agent (SAN or LAN) with 1 OS IDA        [***]      [***]  $   [***]   [***]  $   [***]  $    [***]
SKU11        Tier I Application IDA-UNIX                                [***]      [***]  $   [***]   [***]  $   [***]  $    [***]
SKU12        Tier II Application IDA-UNIX                               [***]      [***]  $   [***]   [***]  $   [***]  $    [***]
SKU13        Upgrade key to unlock GalaxyExpress to Galaxy                         [***]  $   [***]   [***]  $   [***]  $    [***]

SKU14        GalaxyExpress Server Suite includes:                       [***]      [***]  $   [***]   [***]  $   [***]  $    [***]
                GalaxyExpress (key code upgrade capability to Galaxy)
                1 Windows or Storage Server 2003 MediaAgent included
                Single tape drive support (no library support)
                5 FS Agents (can purchase more FS agents from list
                  above) for Windows, UNIX, Linux or Novell
                May purchase Windows Application Agents from above
                Max 10 total clients (agents)

SKU15        GalaxyExpress Automation Suite includes:                   [***]      [***]  $   [***]   [***]  $   [***]  $    [***]
                GalaxyExpress (key code upgrade capability to Galaxy)
                1 Windows, Storage Server 2003, Linux or Novell
                  MediaAgent included Media Agent supports a maximum
                  of one 6-drive library
                5 FS Agents (can purchase more FS agents from list
                  above) for Windows, UNIX, Linux or Novell
                Max 10 total clients (agents) inclusive of coupon for
                  1 Windows Application IDA
                (may purchase more Windows (only) application agents
                  from list above)

SKU16        Exchange Management Pak (EMP) (includes 25 CAL's)                            $   [***]   [***]  $   [***]  $    [***]

SKU17        Bundle of 25 Client Access Licenses for EMP                                  $   [***]   [***]  $   [***]  $    [***]

SKU18        Archiving and Compliance Pak (ACP) (includes 25 CAL's)                       $   [***]   [***]  $   [***]  $    [***]

SKU19        Bundle of 25 Client Access Licenses for ACP                                  $   [***]   [***]  $   [***]  $    [***]
</TABLE>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.21
<SEQUENCE>16
<FILENAME>y24537a5exv10w21.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>




      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.
 DELL                                                                                        SW      DELL SW    UPDATE     TOTAL
  SKU                         SKU DESCRIPTION                           [***]     [***]     MSRP      COST    PROTECTION   COGS
------  -------------------------------------------------------------   -----     -----    ------    -------  ----------   -----
<S>     <C>                                                             <C>       <C>      <C>       <C>      <C>          <C>
 SKU 1  CommServe                                                       [***]     [***]    $[***]    [***]       [***]     [***]

 SKU 2  WINDOWS UNIX/NETWARE Media Agent (SAN or LAN) with 1 OS IDA     [***]     [***]    $[***]    [***]       [***]     [***]

 SKU 3  LAN Drive Pack with SLMS (per drive)                            [***]     [***]    $[***]    [***]       [***]     [***]

 SKU 4  SAN Drive Pack with DDS and SLMS (per drive)                    [***]     [***]    $[***]    [***]       [***]     [***]

 SKU 5  OS IDA-WINDOWS/NETWARE/LINUX                                    [***]     [***]    $[***]    [***]       [***]     [***]

 SKU 6  Application IDA-WINDOWS                                         [***]     [***]    $[***]    [***]       [***]     [***]

 SKU 7  OS IDA-UNIX                                                     [***]     [***]    $[***]    [***]       [***]     [***]

 SKU 8  Tier I UNIX Media Agent (SAN  or LAN) with 1 OS IDA             [***]     [***]    $[***]    [***]       [***]     [***]

 SKU 9  Tier II UNIX Media Agent (SAN  or LAN) with 1 OS IDA            [***]     [***]    $[***]    [***]       [***]     [***]

SKU 10  Tier I Application IDA-UNIX                                     [***]     [***]    $[***]    [***]       [***]     [***]

SKU 11  Tier II Application IDA-UNIX                                    [***]     [***]    $[***]    [***]       [***]     [***]

SKU 12  Upgrade key to unlock GalaxyExpress to Galaxy                   [***]     [***]    $[***]    [***]       [***]     [***]

SKU 13  GalaxyExpress Server Suite includes:                            [***]     [***]    $[***]    [***]       [***]     [***]
             Galaxy Express (key code upgrade capability to Galaxy)
             1 Windows or Storage Server 2003 Media Agent included
             Single tape drive support (no library support)
             5 FS Agents (can purchase more FS agents from list above)
               for Windows, UNIX, Linux or Novell
             May purchase Windows Application Agents from above
             Max 10 total clients (agents)

SKU 14  Galaxy Express Server PRO Suite includes:                       [***]     [***]    $[***]    [***]       [***]     [***]
             GalaxyExpress (key code upgrade capability to Galaxy)
             1 Windows, Storage Server 2003, Linux or Novell Media
               Agent included
             Media Agent supports a maximum of one 6-drive library
             5 FS Agents (can purchase more FS Agents from list
               above) for Windows, UNIX, Linux or Novell
             Max 10 total clients (agents) inclusive of coupon for
               1 Windows Application IDA

             (may purchase more Windows (only) application agents
               from list above)

SKU 15  Exchange Management Pak (EMP) (includes 25 CAL's)                                  $[***]    [***]       [***]     [***]

SKU 16  Bundle of 25 Client Access Libraries for EMP                                       $[***]    [***]       [***]     [***]
</TABLE>

                                     Page 4

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.22
<SEQUENCE>17
<FILENAME>y24537a5exv10w22.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.

<TABLE>
<S>                                                   <C>
COMMVAULT SYSTEMS INC.                                DELL PRODUCTS L. P.


By: /s/ David R. West                                 By: /s/ Joseph Kanicki
   -----------------------------------------              ----------------------------------------

Name: David R. West                                   Name: Joseph Kanicki
      --------------------------------------                --------------------------------------

Title: VP Marketing & Business Development            Title: Senior Manager, Dell, Inc.
       -----------------------------------                   -------------------------------------

Date: 5/22/06                                         Date: 6/6/2006
      --------------------------------------                --------------------------------------
</TABLE>


                                     Page 1
<PAGE>

                                    EXHIBIT B
                               PRICING SUPPLEMENT
                        TO THE SOFTWARE LICENSE AGREEMENT
                           BETWEEN DELL PRODUCTS L.P.
                           AND COMMVAULT SYSTEMS INC.

                                   FULL GALAXY
<TABLE>
<CAPTION>
                                                                           1YR UPDATE
                                                                           PROTECTION
DELL                                                                     INCLUDES L2/L3    ENHANCED
SKU             SKU DESCRIPTION                          DELL SW COST       SUPPORT         SUPPORT      TOTAL COGS
----            ---------------                          ------------    --------------    --------      ----------
<S>             <C>                                      <C>             <C>               <C>           <C>
SKU1            CommServe                                  $ [***]          $ [***]         $ [***]       $ [***]

SKU2            WINDOWS/LINUX/NETWARE Media Agent          $ [***]          $ [***]         $ [***]       $ [***]
                (SAN or LAN) with 1 OS IDA

SKU3            LAN Drive Pack with SLMS (per drive)       $ [***]          $ [***]         $ [***]       $ [***]

SKU4            SAN Drive Pack with DDS and SLMS (per      $ [***]          $ [***]         $ [***]       $ [***]
                drive)

SKU5            OS IDA WINDOWS/NETWARE/LINUX               $ [***]          $ [***]         $ [***]       $ [***]

SKU6            Application IDA WINDOWS                    $ [***]          $ [***]         $ [***]       $ [***]

SKU7            OS IDA UNIX                                $ [***]          $ [***]         $ [***]       $ [***]

SKU8            Tier I UNIX Media Agent (SAN or LAN)       $ [***]          $ [***]         $ [***]       $ [***]
                with 1 OS IDA

SKU9            Tier 2 UNIX Media Agent (SAN or LAN)       $ [***]          $ [***]         $ [***]       $ [***]
                with 1 OS IDA

SKU10           Tier 1 Application IDA UNIX                $ [***]          $ [***]         $ [***]       $ [***]

SKU11           Tier 2 Application IDA UNIX                $ [***]          $ [***]         $ [***]       $ [***]

SKU12           Upgrade key to unlock Galaxy Express       $ [***]          $ [***]         $ [***]       $ [***]
                to Galaxy

SKU13           Full Advance Features Pack (AFP)           $ [***]          $ [***]         $ [***]       $ [***]
                Upgrade to CommCell Bundle

SKU14           AFP Bundle Upgrade for Media Agent         $ [***]          $ [***]         $ [***]       $ [***]

SKU15           Gridstor for CommServe                     $ [***]          $ [***]         $ [***]       $ [***]

SKU16           Gridstor for Media Agent                   $ [***]          $ [***]         $ [***]       $ [***]

SKU17           Vault Tracker for CommServe                $ [***]          $ [***]         $ [***]       $ [***]

SKU18           Vault Tracker for Media Agent              $ [***]          $ [***]         $ [***]       $ [***]

SKU19           Data Migrator for Windows 1 CPU            $ [***]          $ [***]         $ [***]       $ [***]

SKU20           Data Migrator for Windows 2+ CPU           $ [***]          $ [***]         $ [***]       $ [***]

SKU21           Extended WORM Support                      $ [***]          $ [***]         $ [***]       $ [***]

SKU22           Qsnap Open File for                        $ [***]          $ [***]         $ [***]       $ [***]
                Windows/Linux/Solaris

SKU23           Virtual Machine IDA (for Vmware or         $ [***]          $ [***]         $ [***]       $ [***]
                MSFT Virtual Machine)

SKU24           NDMP Agent 6TB                             $ [***]          $ [***]         $ [***]       $ [***]

SKU25           Direct to Disk Option (DDO) 800GB          $ [***]          $ [***]         $ [***]       $ [***]

SKU26           One Touch Server                           $ [***]          $ [***]         $ [***]       $ [***]

SKU27           One Touch Client                           $ [***]          $ [***]         $ [***]       $ [***]

SKU28           DataMigrator for Exchange                  $ [***]          $ [***]         $ [***]       $ [***]

SKU29           DM for Exchange CAL Basic                  $ [***]          $ [***]         $ [***]       $ [***]

SKU30           DataArchiver for Exchange                  $ [***]          $ [***]         $ [***]       $ [***]

SKU31           DM/DA for Exchange CAL ADVANCED            $ [***]          $ [***]         $ [***]       $ [***]

SKU32           Dell Maintenance -- $1 SKU                 $ [***]             [***]           [***]      $ [***]

SKU33           Dell Maintenance -- $10 SKU                $ [***]             [***]           [***]      $ [***]

SKU34           Dell Maintenance -- $100 SKU               $ [***]             [***]           [***]      $ [***]

SKU35           Dell Maintenance -- $1000 SKU              $ [***]             [***]           [***]      $ [***]
</TABLE>

                                     Page 2
<PAGE>

                                 GALAXY EXPRESS
<TABLE>
<CAPTION>
                                                                            1YR UPDATE
                                                                            PROTECTION
DELL                                                                         INCLUDES
SKU             SKU DESCRIPTION                            DELL SW COST   L2/L3 SUPPORT    ENHANCED      TOTAL COGS
----            ---------------                            ------------   -------------    --------      ----------
<S>             <C>                                        <C>            <C>              <C>           <C>
SKU36           Galaxy Express Small Business Server         $ [***]         $ [***]        $ [***]       $ [***]
                Edition
                      1 Windows MediaAgent included
                      3 Application Agents included
                         (SQL, Exchange and Sharepoint
                      Single tape drive support (no
                         library support)
                      Includes 4 file system agents
                      Worm Support included

SKU37           Galaxy Express File Server Edition:          $ [***]         $ [***]        $ [***]       $ [***]
                      Galaxy Express (key code upgrade
                         capability to Galaxy)
                      1 Windows or Storage Server2003
                         MediaAgent included
                      Single tape drive support (no
                         library support)
                      Worm Support included
                      Max 13 total clients (agents)
                      Includes 4 file system agents


SKU38           Galaxy Express E-mail & Database Server      $ [***]         $ [***]        $ [***]       $ [***]
                Edition
                      1 Application Agent included
                         (Exchange, Notes, GroupWise,
                         SQL, SharePoint or Oracle)
                      Galaxy Express (key code upgrade
                         capability to Galaxy)
                      1 Windows, Storage Server2003,
                         Linux or Novell MediaAgent
                         included
                      Media Agent supports a maximum of
                         one, 2-drive library
                      Open file support included
                      Worm support included
                      Max 15 total clients (agents)
                         inclusive of coupon for 1
                         Windows Application iDA
                      Includes 4 file system agents

SKU39           Galaxy Express OLBU -- For Express only      $ [***]         $ [***]        $ [***]       $ [***]

SKU40           Galaxy Express Client Pack -- for            $ [***]         $ [***]        $ [***]       $ [***]
                Express only

SKU41           Galaxy Express LAN Drive                     $ [***]         $ [***]        $ [***]       $ [***]
</TABLE>

                                     Page 3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.23
<SEQUENCE>18
<FILENAME>y24537a5exv10w23.txt
<DESCRIPTION>EX-10.23: RESELLER AGREEMENT
<TEXT>
<PAGE>


                                                          CONFIDENTIAL TREATMENT
[***] 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 AMENDED AND RESTATED 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 effective as of 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 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.

         7.       All Products will be subject to CommVault's MSRP in effect as
                  of April 6, 2005.

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 (the
"Agreement").


Dell, Inc.        ("Reseller")                          CommVault Systems
------------------------------------                    ------------------------


/s/ Michael P. Owens                                    /s/ Warren H. Mondschein
------------------------------------                    ------------------------
Signature                                               Signature



Michael P. Owens                                        Warren H. Mondschein
------------------------------------                    ------------------------
Name                                                    Name



Sr. Mgr, SW Procurement                                 VP & General Counsel
------------------------------------                    ------------------------
Title                                                   Title



9/14/06                                                 9/14/06
------------------------------------                    ------------------------
Date                                                    Date


                                                                          Page 2

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-21.1
<SEQUENCE>19
<FILENAME>y24537a5exv21w1.txt
<DESCRIPTION>EX-21.1: LIST OF SUBSIDIARIES
<TEXT>
<PAGE>
                                                                               .
                                                                               .
                                                                               .
                                                                    EXHIBIT 21.1

                     SUBSIDIARIES OF COMMVAULT SYSTEMS, INC.

<TABLE>
<CAPTION>
Subsidiary                                      Jurisdiction of Organization
---------------------------------------------   ----------------------------
<S>                                             <C>
CommVault Systems (Canada) Inc                  Ontario
CommVault Systems Mexico S. de R.L. de C.V.     Mexico
CommVault Holding Company B.V.                  The Netherlands
CommVault Systems Netherlands B.V.              The Netherlands
CommVault Systems International B.V.            The Netherlands
CommVault Systems (India) Private Limited       India
Commvault Systems (Australia) Pty. Ltd.         Australia
CommVault Systems (Singapore) Private Limited   Singapore
CommVault Systems Limited                       England
CommVault Systems Gmbh                          Germany
CommVault Systems Sarl                          France
Advanced Data LifeCycle Management, Inc.        Delaware
</TABLE>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>20
<FILENAME>y24537a5exv23w1.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 (except Note 13, as to which the date is
September 14, 2006), in Amendment No. 5 to the Registration Statement (Form S-1
No. 333-132550) and related Prospectus of CommVault Systems, Inc.

                                             /s/ Ernst & Young LLP

MetroPark, New Jersey
September 14, 2006

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>21
<FILENAME>y24537a5y2453700.gif
<DESCRIPTION>GRAPHIC
<TEXT>
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end
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