-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Thb1oUfbSk9vVlqpqwktYuQxinTmb77+hbf2XO9UGffTGpkkkbXulHn4XvDtKl4+
 ZV4P4wKD2A8atoAs4GpWmQ==

<SEC-DOCUMENT>0000708821-10-000018.txt : 20110204
<SEC-HEADER>0000708821-10-000018.hdr.sgml : 20110204
<ACCEPTANCE-DATETIME>20100827150921
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000708821-10-000018
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20100827

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PAR TECHNOLOGY CORP
		CENTRAL INDEX KEY:			0000708821
		STANDARD INDUSTRIAL CLASSIFICATION:	CALCULATING & ACCOUNTING MACHINES (NO ELECTRONIC COMPUTERS) [3578]
		IRS NUMBER:				161434688
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1207

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		PAR TECHNOLOGY PARK
		STREET 2:		8383 SENECA TURNPIKE
		CITY:			NEW HARTFORD
		STATE:			NY
		ZIP:			13413
		BUSINESS PHONE:		3157380600
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<html>
<head>
    <title>secltr082710.htm</title>
<!-- Licensed to: partech-->
<!-- Document Created using EDGARizer 5.1.4.0 -->
<!-- Copyright 1995 - 2009 Thomson Reuters. All rights reserved. -->
</head>
<body bgcolor="#ffffff" style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">August
27, 2010</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">BY
ELECTRONIC SUBMISSION</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">United
States Securities and Exchange Commission</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Division
of Corporation Finance</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">100 F
Street, N.E.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Washington,
D.C. 20549</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Attention:
Morgan Youngwood</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">RE:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">PAR Technology
Corporation</font></font></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Form
10-K for the Fiscal Year Ended December 31, 2009</font></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Filed
March 16, 2010</font></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">File
No. 001-09720</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Ladies
and Gentlemen:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">PAR
Technology Corporation,&#160;&#160;a Delaware corporation ("PAR" or the
"Company"), is transmitting&#160;&#160;for&#160;&#160;filing&#160;&#160;with
the&#160;&#160;Securities&#160;&#160;and&#160;&#160;Exchange&#160;&#160;Commission&#160;&#160;(the
"Commission"),&#160;&#160;this letter&#160;&#160;reflecting&#160;&#160;PAR's
responses to the written comments communicated&#160;&#160;by Mr. Morgan
Youngwood, Staff Accountant,&#160;&#160;to John W.
Sammon,&#160;&#160;Jr.,&#160;&#160;Chairman of the Board and President of PAR,
by letter dated July 30, 2010.&#160;&#160;The responses set forth below have
been organized in the same manner in which the comments were presented in Mr.
Youngwood&#8217;s letter.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Form 10-K for the Fiscal
Year Ended December 31, 2009</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td style="WIDTH: 72pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Item
      7</font>:</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Management&#8217;s
      Discussion and Analysis of Financial Condition and Results of
      Operations</font></font></div>
            </td>
          </tr></table>
    </div>
    <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">&#160;</font></div>
    <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-WEIGHT: normal; TEXT-DECORATION: underline">Liquidity
and Capital Resources, page 32</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">Comment</font>:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td align="right" style="WIDTH: 72pt">
              <div><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We
      note that your discussion of cash flows from operations is essentially a
      recitation of certain reconciling items identified on the face of the
      statement of cash flows. This does not appear to contribute substantively
      to an understanding of your cash flows as it repeats items that are
      readily determinable from the financial statements. When preparing the
      discussion and analysis of operating cash flows, you should address
      material changes in the underlying drivers that affect these cash flows.
      These disclosures should also include a discussion of the underlying
      reasons for changes in working capital items that affect operating cash
      flows. In this regard, we note that there have been significant changes in
      accounts receivable and customer deposits but there is no discussion
      regarding the reasons for these changes. As part of your response, tell us
      how you considered disclosing days sales outstanding (&#8220;DSO&#8221;) at each
      balance sheet date and the impact it had on your cash flows. See section
      IV.B.1 of SEC Release 33-8350.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Response:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company supplementally informs the staff that cash flows provided by operations
through the reduction of accounts receivable was the result of improved
collection efforts implemented in fiscal year 2009, combined with an overall
decrease in accounts receivable commensurate with the decrease in revenue as
compared to the prior fiscal year.&#160;&#160;The change in working capital
resulting from the reduction in customer deposits from fiscal year 2008 was
primarily attributable to a significant advance payment received from a
Restaurant customer in the fourth quarter of fiscal 2008 that did not recur in
2009.&#160;&#160;The change in working capital associated with the reduction in
accounts payable was commensurate with the Company executing upon a strategy to
reduce its total inventory.&#160;&#160;The Company will provide expanded
disclosure in future filings.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Company supplementally clarifies to
the staff that it did not disclose days sales outstanding (&#8220;DSO&#8221;) at each
balance sheet date as this information can be readily determined by financial
statement users based on information derived directly from the financial
statements.&#160;&#160;The Company will consider providing disclosure of
significant changes in DSO in future filings.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td style="WIDTH: 72pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Item
      11.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Executive Compensation
      (Incorporated by Reference from Definitive Proxy Statement on Schedule
      14A, filed April 23, 2010)</font></font></div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">General</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Comment:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td align="right" style="WIDTH: 72pt">
              <div><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Please
      explain to us what consideration you gave to the requirements of Item
      407(c) (2) (vi) of regulation S-K. You indicate that your nominating and
      corporate governance committee considers &#8220;diversity reflecting a variety
      of personal and professional experience and background&#8221; when recommending
      director nominees for election. We would expect to see more detailed
      disclosure with respect to how your nominating and corporate governance
      committee considers diversity in identifying nominees for director, if
      your nominating and corporate governance committee has a policy with
      regard to the consideration of diversity in identifying director nominees,
      and a description of how this policy is implemented, as well as how the
      nominating and corporate governance committee assesses the effectiveness
      of the policy. See Section II.B.3 of SEC Release
  34-61175.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Response:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company supplementally informs the staff that in preparation of the disclosures
regarding the Company&#8217;s director nomination process, careful consideration was
given to the requirements of the revised requirements of Item 407(c)(2),
including the new romanette (vi) of Regulation S-K.&#160;&#160;The Nominating
and Corporate Governance Committee&#8217;s process for identifying and evaluating
nominees for director is described beginning on page 7 of the Definitive Proxy
Statement.&#160;&#160;To identify nominees, the Committee utilizes multiple
sources, both internal and external, including potential candidates identified
by the Company&#8217;s shareholders.&#160;&#160;Item 407(c)(2)(vi) requires disclosure
of any differences in the manner the Committee evaluates nominees for director
based on the source of the recommendation of the candidate.&#160;&#160;The
Committee&#8217;s process of screening candidates, as described in the Definitive
Proxy Statement, is uniform regardless of the source of the
recommendation.</font></div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
    </div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
respect to the Committee&#8217;s consideration of diversity in identifying director
nominees, the Committee&#8217;s Charter embodies the policy of the Committee to
include in its criteria for identifying and evaluating potential nominees for
director, the diversity of personal and professional experience and background a
director nominee is able to contribute to the board.&#160;&#160;Seeking to
maintain a diverse but overall balanced board, the Committee considers the
composition of the entire board and the skills, qualifications and areas of
expertise the candidate brings to the board in the case of nominees who are
existing directors or is able to contribute to the board when evaluating a newly
identified director nominee.&#160;&#160;The committee reviews its effectiveness
in balancing personal and professional experience and background when assessing
the composition of the board on an annual basis when assembling its slate of
recommended nominees.&#160;&#160;The Company will provide expanded disclosure in
future filings.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Compensation Policy, page
15</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Comment:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td align="right" style="WIDTH: 72pt">
              <div><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We
      note your disclosure in response to Item 402(s) of Regulation S-K. Please
      describe the process you undertook to reach the conclusion that your
      compensation policies and practices are not reasonably likely to have a
      material adverse effect on the
Company.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">Response</font>:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company supplementally informs the staff that the Company&#8217;s conclusion that its
compensation policies and practices are not reasonably likely to have a material
adverse effect on the Company was based on the Company&#8217;s consideration of the
consistent compensation structures of all its businesses, the limited level of
subjectivity and judgment with respect to the award factors, as well as the
timing of the award payments.&#160;&#160;General risk management practices are
included within an employee&#8217;s functional responsibilities, further noting the
Company does not award additional compensation to employees for taking on
unusually risky behaviors.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
considering the compensation structure, the Company determined that in general
it has instituted a compensation structure that aligns with the risk of the
related business.&#160;&#160;For example, the President of the Government
business has base compensation that is significantly lower than the President of
the Restaurant business based on the Company&#8217;s determination that the Restaurant
business carries more risk given its size and diversity of customers, whereas
the Government business is smaller and has a relatively consistent customer
base.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
majority of employees&#8217; compensation is fixed, based on their work experience,
the overall complexity of the job function in which they are performing, as well
as consideration of compensation of similar roles within the
marketplace.&#160;&#160;There are, however, a few employees who do receive
variable compensation, primarily executives in the form of the Company&#8217;s
incentive compensation plan (as described in great detail within the Definitive
Proxy Statement), as well as sales personnel in the form of sales
commission.&#160;&#160;The benchmarks in earning this incentive compensation
(financial metrics relative to executives and revenue targets with respect to
sales personnel) are established with a reasonably high probability of being
achieved and do not encourage the employee to take on unnecessary
risk.&#160;&#160;Compensation policies are assessed annually to ensure any
change in the overall risk profile is considered.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Furthermore,
the Company&#8217;s variable compensation awards are generally based on typical
financial metrics, namely revenue, pretax income from operations, and cash flow
(through inventory turnover and accounts receivable days sales outstanding),
metrics the Company feels are clearly defined and determinable with minimal
amounts of subjectivity involved.&#160;&#160;In addition, the overall accuracy
of the underlying financial information is supported by the Company&#8217;s effective
internal control over financial <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">reporting.&#160;&#160;The
Company believes that it has controls that are effectively designed and in
operation relative to its financial reporting that such controls contribute to
this risk mitigation.</font></font></div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
    </div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Lastly,
the Company considered the timing of award payments noting, with the exception
of sales commission, variable compensation payments are processed after the
completion of the Company&#8217;s annual audit, which is performed by an independent
registered public accounting firm.&#160;&#160;With respect to sales commission,
in general, a certain percentage of this commission is withheld until such time
as full payment is received from the related customer.&#160;&#160;Furthermore,
compensation is awarded in periods commensurate with the behaviors (i.e. there
are no instances whereby the a bonus is awarded for the completion of a task,
but the financial risk and rewards relative to that task occur in a subsequent
period).&#160;&#160;The Company will expand upon this disclosure in future
filings.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Elements of Executive
Compensation, page 15</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Comment:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td align="right" style="WIDTH: 72pt">
              <div><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Please
      provide clear disclosure addressing how each compensation component and
      your decisions regarding these components impact other elements of
      compensation. See Item 402(b)(1)(vi) of Regulation S-K. In this regard,
      please clarify whether you review each element of compensation
      independently or whether you consider each element collectively with the
      other elements of your compensation program when establishing the various
      forms and levels of compensation.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="FONT-STYLE: italic; DISPLAY: inline; TEXT-DECORATION: underline">Response</font>:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company supplementally clarifies for the staff that in general, the Company
considers each element of compensation collectively with the other
elements.&#160;&#160;The Company assesses the adequacy and appropriateness of an
employee&#8217;s total compensation, inclusive of all compensation elements, relative
to the third party compensation data as described within the Elements of
Compensation section of the Definitive Proxy Statement.&#160;&#160;With respect
to the specific elements, an employee&#8217;s base salary serves as a basis in
determining the employee&#8217;s incentive compensation award (assuming performance
metrics are achieved) and the Company&#8217;s profit sharing award.&#160;&#160;Equity
compensation is discretionary in nature and is not impacted by the employee&#8217;s
base salary or incentive compensation but is rather typically awarded
commensurate with a promotion, increased responsibility, or to provide long-term
financial incentives to employees that relate to shareholder value.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company considered each element relative to the Company&#8217;s overall compensation
objectives as follows:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 36pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Base Salary</font> - Base
salary is assigned to employees, including named executive officers, based on
typical job related considerations such as experience requirements, level of
responsibility, and number of direct reports, which the Company feels aligns
compensation with the employee&#8217;s performance objectives.&#160;&#160;Furthermore,
the Company generally reviews base salary for its employees on an annual basis,
adjusting it as necessary to reward employees for their performance and
behaviors that are consistent with the Company&#8217;s core values.</font></div>
    <div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 36pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Incentive
Compensation</font> - Incentive compensation is typically awarded to executives,
in response to the employee&#8217;s achievement of performance objectives and goals
and their demonstration of the Company&#8217;s core values.&#160;&#160;As part of the
annual performance review process, the Company will assess the employee&#8217;s
performance relative to the Company&#8217;s core values, which may result in incentive
compensation.</font></div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
    </div>
    <div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 36pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Equity Compensation</font> -
Equity compensation is primarily discretionary in nature and is provided to
employees, including named executive officers, as either a response to the
employee&#8217;s achievement of performance goals and objectives or as an incentive to
attract or retain employees and provide long-term financial incentives that
relate to shareholder value.&#160;&#160;Equity compensation is at the discretion
of the Company&#8217;s Board of Directors, and to the extent permitted by applicable
law, its delegates.&#160;&#160;Employees who demonstrate behaviors consistent
with the Company&#8217;s core values would be eligible to receive equity
awards.</font></div>
    <div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: justify; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 36pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Benefits and
Perquisites</font> - Benefits and perquisites are generally available to all
employees and would be subject to the aforementioned considerations applicable
to base salary, incentive compensation and equity compensation.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company will expand upon this disclosure in future filings.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Comment:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td align="right" style="WIDTH: 72pt">
              <div><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We
      note that your executive compensation packages combine base salary, cash
      incentives, equity, deferred compensation and various other benefits. We
      further note that in 2009 your compensation packages appeared heavily
      weighted towards cash compensation. However, you do not discuss whether
      you have a specific policy to guide the allocation of total compensation
      among those various elements and forms of awards (e.g. cash or equity). If
      you have a formula of any type, please describe what that formula is. If
      you have something other than a formula, such as a preference or practice
      in allocating between cash and non-cash compensation and among different
      forms of non-cash compensation, please include an appropriate discussion
      of any such policies, including analysis of how decisions regarding one
      type of award motivate the Compensation Committee to award or consider
      other forms of compensation. Refer to Item 402(b)(2)(ii) of Regulation
      S-K.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Response:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company supplementally informs the staff that the Company does not have a
specific policy to guide the allocation of total compensation among the various
elements and forms of awards, nor does it have a formula to do
so.&#160;&#160;However, it has been the Company&#8217;s practice that compensation is
primarily comprised of cash compensation.&#160;&#160;This practice is based on
the fact that the Compensation Committee establishes base salaries generally 10%
- - 15% less than comparable base salaries as included in the third party surveys
considered by the Company, which the Committee feels serves as an additional
incentive to try to achieve the Company&#8217;s financial targets.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Therefore,
the cash based incentive compensation as established by the Compensation
Committee is offered as a way for the employee to earn additional cash
compensation to be consistent with market cash compensation for their position,
as well as additional cash compensation earned through the achievement of
financial targets.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Non-cash
compensation, namely equity compensation, is discretionary in nature and is
awarded by the Company&#8217;s Board of Directors, and to the extent permitted by
applicable law, its delegates.&#160;&#160;As part of this process, consideration
is given to the employee&#8217;s total compensation potential (includes base salary
and incentive compensation), an assessment of the employee&#8217;s performance
relative to specific performance objectives and the Company&#8217;s core values, as
well as the financial results of the related business.&#160;&#160;The Company
will expand this disclosure in future filings.</font></div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Comment:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td align="right" style="WIDTH: 72pt">
              <div><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">6.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Your
      Compensation Discussion and Analysis section should provide an expanded
      analysis of how you arrived at and why you paid each particular level of
      compensation for 2009 for each of the named executive officers identified
      in the Summary Compensation table. You indicate generally that the
      Compensation Committee &#8220;considers the self assessments of each executive
      as to their performance against pre-established goals and objectives, the
      executive&#8217;s involvement in the day to day operations of the relevant
      business unit, as well as results of a third party compensation survey.&#8221;
      However, your discussion of the various elements of compensation does not
      specifically explain how you arrived at the amounts paid for each named
      executive officer. For example, we note minimal discussion and analysis of
      how the Compensation Committee determined (i) base salaries, (ii) cash
      bonus targets, and (iii) equity compensation, and why each such level was
      appropriate. By way of further example, you disclose that each of Messrs.
      Lynch and Soladay received stock option awards during 2009 based in whole
      or in part on consideration of the third party compensation surveys, but
      do not explain how such data was considered or why the amount of the award
      was appropriate. Please provide a more focused discussion, on an
      individualized basis, that provides substantive analysis and insight into
      how the Compensation Committee made actual payout determinations for the
      fiscal year for which compensation is being reported. Discuss the specific
      factors considered by the Compensation Committee in ultimately approving
      each form of compensation, including the reasons the amounts paid to each
      named executive officer are believed appropriate. Refer top Item
      402(b)(1)(iv) and (v) of Regulation
S-K.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Response:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company supplementally clarifies for the staff that as stated in the Company&#8217;s
Definitive Proxy Statement, base salary is established primarily based on the
information obtained from third party surveys including peer group compensation
information.&#160;&#160;In addition, the Compensation Committee evaluates the
named executive officer&#8217;s achievement of performance objectives and compliance
with the Company&#8217;s core values as well as other factors as outlined within the
&#8220;Base Salary&#8221; section of its Compensation Discussion and
Analysis.&#160;&#160;Compensation amounts as outlined in the survey serve as the
baseline for the Committee, which then establishes the actual salary higher or
lower than this baseline after consideration of the aforementioned
factors.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company supplementally informs the staff that the cash bonus targets are
determined based on the Committee&#8217;s consideration of the Company&#8217;s Annual
Operating Plan (AOP) for its businesses.&#160;&#160;The AOP is established by
executive management based on actual historical results, combined with
consideration of current economic factors and market trends.&#160;&#160;The AOP
is ratified by the Company&#8217;s Board of Directors on an annual basis, prior to
being included as the benchmark for its cash bonus targets.&#160;&#160;The 0% -
200% of base salary earnings range for cash bonuses is established by the
Compensation Committee after considering the associated financial impact (namely
the financial impact based on exceeding such targets versus the related
financial detriment of paying the incremental cash bonus award).&#160;&#160;The
percentages utilized are consistent with prior periods.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Equity
based compensation is discretionary in nature and is utilized to provide
long-term financial incentives that relate to shareholder value.&#160;&#160;In
assessing such amounts, the Company benchmarks its equity based compensation
expense against the related expense incurred by its peers and considers relevant
information as disclosed in the third party survey.&#160;&#160;See specific
discussion relative to Messrs. Lynch and Soladay below.</font></div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">6</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
    </div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
addition, the Company supplementally informs the staff that actual compensation
payments relative to fiscal year 2009 for named executive officers were
determined as follows:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Dr.
John W. Sammon:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 72pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Base Salary</font> - Dr.
Sammon&#8217;s base salary for fiscal year 2009 was established based on consideration
of the third party compensation survey noting that information in the survey
suggested a base salary significantly higher than the actual base salary
established.&#160;&#160;However, given economic conditions and the Corporation&#8217;s
financial performance in the most recently completed fiscal year, a base salary
of $355,591 was deemed appropriate.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 72pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Incentive
Compensation</font> - The incentive compensation award for Dr. Sammon was based
on the performance objectives of all of the Company&#8217;s businesses.&#160;&#160;The
results of each performance objective and the impact on the amount of incentive
compensation awarded to Dr. Sammon during the most recent fiscal year covered
were as follows:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Revenue (represented 35% of
the total incentive award)</font> - For fiscal year 2009, the revenue objective
was achieved or exceeded by two of the Company&#8217;s four
businesses.&#160;&#160;This resulted in a partial factor applied to the
incentive compensation award (based on the proportionate share of the achieved
or exceeded goals in relation to the Company&#8217;s consolidated revenue goal) and
resulted in earnings of approximately $28,000.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Pretax Income (represented
35% of the total incentive award)</font> - For fiscal year 2009, the pretax
income objective was partially achieved by one business (although that business
did not meet its goal completely, its actual results were greater than 80% of
the goal, thereby earning a partial award) and was exceeded by another
business.&#160;&#160;This resulted in a partial factor applied to the incentive
compensation award (based on the proportionate share of partially achieved and
exceeded goals in relation to the Company&#8217;s consolidated pretax income goal) and
resulted in earnings of approximately $34,000.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Inventory Turnover
(represented 15% of the total incentive award)</font> - For fiscal year 2009,
the inventory turnover objective was not achieved by the two relevant businesses
(this objective does not apply to two of the four businesses, as they do not
carry any inventory) and therefore was not factored in the calculation of the
incentive award.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Accounts Receivable
(represented 15% of the total incentive award)</font> - For fiscal year 2009,
the accounts receivable objective was exceeded by two of the Company&#8217;s
businesses and was partially achieved by another of its
businesses.&#160;&#160;This resulted in a partial factor applied to the
incentive compensation award (based on the proportionate share of partially
achieved and exceeded goals in relation to the Company&#8217;s consolidated accounts
receivable goal) and resulted in earnings of approximately
$10,000.</font><br></div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">7</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Ronald J.
Casciano:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 72pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Base Salary</font> - Mr.
Casciano&#8217;s base salary for fiscal year 2009 was established based on his
achievement of performance goals and consideration of the third party
compensation survey noting that information in the survey suggested a base
salary higher than the actual base salary established.&#160;&#160;However, given
economic conditions and the Corporation&#8217;s financial performance in the most
recently completed fiscal year, a base salary of $250,000 was deemed
appropriate.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 72pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Incentive
Compensation</font> - The incentive compensation award for Mr. Casciano was
based on the performance objectives of all of the Company&#8217;s
businesses.&#160;&#160;The results of each performance objective and the impact
on the amount of incentive compensation awarded to Mr. Casciano during the most
recent fiscal year covered were as follows:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Revenue (represented 35% of
the total incentive award)</font> - For fiscal year 2009, the revenue objective
was achieved or exceeded by two of the Company&#8217;s four
businesses.&#160;&#160;This resulted in a partial factor applied to the
incentive compensation award (based on the proportionate share of the achieved
or exceeded goals in relation to the Company&#8217;s consolidated revenue goal) and
resulted in earnings of approximately $15,000.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Pretax Income (represented
35% of the total incentive award)</font> - For fiscal year 2009, the pretax
income objective was partially achieved by one business (although that business
did not meet its goal completely, its actual results were greater than 80% of
the goal, thereby earning a partial award) and was exceeded by another
business.&#160;&#160;This resulted in a partial factor applied to the incentive
compensation award (based on the proportionate share of partially achieved and
exceeded goals in relation to the Company&#8217;s consolidated pretax income goal) and
resulted in earnings of approximately $19,000.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Inventory Turnover
(represented 15% of the total incentive award)</font> - For fiscal year 2009,
the inventory turnover objective was not achieved by the two relevant businesses
(this objective does not apply to two of the four businesses, as they do not
carry any inventory) and therefore was not factored in the calculation of the
incentive award.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Accounts Receivable
(represented 15% of the total incentive award)</font> - For fiscal year 2009,
the accounts receivable objective was exceeded by two of the Company&#8217;s
businesses and was partially achieved by another of its
businesses.&#160;&#160;This resulted in a partial factor applied to the
incentive compensation award (based on the proportionate share of partially
achieved and exceeded goals in relation to the Company&#8217;s consolidated accounts
receivable goal) and resulted in earnings of approximately
$5,000.</font><br></div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">8</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Charles A.
Constantino:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 72pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Base Salary</font> - Mr.
Constantino&#8217;s base salary for fiscal year 2009 was established based on his
achievement of performance goals and consideration of the third party
compensation survey noting that information in the survey suggested a base
salary higher than the actual base salary established.&#160;&#160;However, given
economic conditions and the Corporation&#8217;s financial performance in the most
recently completed fiscal year, a base salary of $250,000 was deemed
appropriate.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 72pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Incentive
Compensation</font> - The incentive compensation award for Mr. Constantino was
based on the performance objectives of all of the Company&#8217;s
businesses.&#160;&#160;The results of each performance objective and the impact
on the amount of incentive compensation awarded to Mr. Constantino during the
most recent fiscal year covered were as follows:</font></div><br>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Revenue (represented 35% of
the total incentive award)</font> - For fiscal year 2009, the revenue objective
was achieved or exceeded by two of the Company&#8217;s four
businesses.&#160;&#160;This resulted in a partial factor applied to the
incentive compensation award (based on the proportionate share of the achieved
or exceeded goals in relation to the Company&#8217;s consolidated revenue goal) and
resulted in earnings of approximately $15,000.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Pretax Income (represented
35% of the total incentive award)</font> - For fiscal year 2009, the pretax
income objective was partially achieved by one business (although that business
did not meet its goal completely, its actual results were greater than 80% of
the goal, thereby earning a partial award) and was exceeded by another
business.&#160;&#160;This resulted in a partial factor applied to the incentive
compensation award (based on the proportionate share of partially achieved and
exceeded goals in relation to the Company&#8217;s consolidated pretax income goal) and
resulted in earnings of approximately $19,000.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Inventory Turnover
(represented 15% of the total incentive award)</font> - For fiscal year 2009,
the inventory turnover objective was not achieved by the two relevant businesses
(this objective does not apply to two of the four businesses, as they do not
carry any inventory) and therefore was not factored in the calculation of the
incentive award.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Accounts Receivable
(represented 15% of the total incentive award)</font> - For fiscal year 2009,
the accounts receivable objective was exceeded by two of the Company&#8217;s
businesses and was partially achieved by another of its
businesses.&#160;&#160;This resulted in a partial factor applied to the
incentive compensation award (based on the proportionate share of partially
achieved and exceeded goals in relation to the Company&#8217;s consolidated accounts
receivable goal) and resulted in earnings of approximately $5,000.</font></div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">9</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Gregory
T. Cortese:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 72pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Base Salary</font> - Mr.
Cortese&#8217;s base salary for fiscal year 2009 was established based on his
achievement of performance goals and consideration of the third party
compensation survey noting that information in the survey suggested a base
salary higher than the actual base salary established.&#160;&#160;However, given
economic conditions and the Corporation&#8217;s financial performance in the most
recently completed fiscal year, a base salary of $250,000 was deemed
appropriate.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 72pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Incentive
Compensation</font> - The incentive compensation award for Mr. Cortese was based
on the performance objectives of all of the Company&#8217;s businesses.&#160;&#160;The
results of each performance objective and the impact on the amount of incentive
compensation awarded to Mr. Cortese during the most recent fiscal year covered
were as follows:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Revenue (represented 35% of
the total incentive award)</font> - For fiscal year 2009, the revenue objective
was achieved or exceeded by two of the Company&#8217;s four
businesses.&#160;&#160;This resulted in a partial factor applied to the
incentive compensation award (based on the proportionate share of the achieved
or exceeded goals in relation to the Company&#8217;s consolidated revenue goal) and
resulted in earnings of approximately $15,000.</font></div><br>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Pretax Income (represented
35% of the total incentive award) - </font>For fiscal year 2009, the pretax
income objective was partially achieved by one business (although that business
did not meet its goal completely, its actual results were greater than 80% of
the goal, thereby earning a partial award) and was exceeded by another
business.&#160;&#160;This resulted in a partial factor applied to the incentive
compensation award (based on the proportionate share of partially achieved and
exceeded goals in relation to the Company&#8217;s consolidated pretax income goal) and
resulted in earnings of approximately $19,000.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Inventory Turnover
(represented 15% of the total incentive award)</font> - For fiscal year 2009,
the inventory turnover objective was not achieved by the two relevant businesses
(this objective does not apply to two of the four businesses, as they do not
carry any inventory) and therefore was not factored in the calculation of the
incentive award.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Accounts Receivable
(represented 15% of the total incentive award)</font> - For fiscal year 2009,
the accounts receivable objective was exceeded by two of the Company&#8217;s
businesses and was partially achieved by another of its
businesses.&#160;&#160;This resulted in a partial factor applied to the
incentive compensation award (based on the proportionate share of partially
achieved and exceeded goals in relation to the Company&#8217;s consolidated accounts
receivable goal) and resulted in earnings of approximately $5,000.</font></div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Stephen
P. Lynch:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 72pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Base Salary</font> - Mr.
Lynch&#8217;s base salary for fiscal year 2009 was established based on his
achievement of performance goals and after consideration of the third party
compensation survey noting that information in the survey suggested a base
salary higher than the actual base salary earned.&#160;&#160;Based on this
assessment, the Committee determined that a base salary of $250,000 was deemed
appropriate.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 72pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Incentive
Compensation</font> - The incentive compensation award for Mr. Lynch was based
on the performance objectives of the Government business.&#160;&#160;The result
of each performance objective and the impact on the amount of incentive
compensation awarded to Mr. Lynch during the most recent fiscal year covered
were as follows:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Revenue (represented 35% of
the total incentive award)</font> - For fiscal year 2009, the revenue objective
was exceeded by the Government business and resulted in more than 100%
consideration in the determination of Mr. Lynch&#8217;s incentive compensation
award.&#160;&#160;This achievement resulted in a payment of approximately
$48,000.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Pretax Income (represented
35% of the total incentive award)</font> - For fiscal year 2009, the pretax
income objective was exceeded by the Government business and resulted in more
than 100% consideration of Mr. Lynch&#8217;s incentive compensation
award.&#160;&#160;This achievement resulted in a payment of approximately
$46,000.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Inventory Turnover
(represented 0% of the total incentive award)</font> - The inventory turnover
objective does not apply to the Government business as this business does not
carry any inventory.</font></div><br>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 108pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Accounts Receivable
(represented 30% of the total incentive award)</font> - For fiscal year 2009,
the accounts receivable objective was exceeded by the Government business and
resulted in more than 100% consideration of Mr. Lynch&#8217;s incentive compensation
award.&#160;&#160;This achievement resulted in a payment of approximately
$39,000.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 72pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Equity Compensation</font> -
The equity awards granted to Mr. Lynch in fiscal year 2009 were based on
multiple factors, namely that the Government business with which Mr. Lynch
oversees, has achieved favorable results for consecutive fiscal
years.&#160;&#160;In addition, it was determined that as President of the
Government business, Mr. Lynch&#8217;s outstanding equity awards were not sufficient
relative to his peers (including consideration of the risk profile associated
with the Government businesses compared to the risk profile of other
businesses).&#160;&#160;As such, an additional grant of equity awards was
provided to Mr. Lynch in 2009 in an effort to compensate him at a level more
consistent with that of his peers.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 72pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>

      <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;A. Edwin
Soladay:</font></div>
      <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 72pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Base Salary and Equity
Compensation</font> - Mr. Soladay was hired by the Company at the start of
fiscal year 2009.&#160;&#160;His base salary and equity awards were established
after consideration of the third party survey, as well as through consultation
with the executive search firm utilized in hiring Mr. Soladay.&#160;&#160;It was
determined that the base compensation and equity awards established for Mr.
Soladay were appropriate given the relevant industry and leadership experience
sought after by the Company for its Restaurant business.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company supplementally clarifies for the staff that the Company has determined
that, pursuant to Instruction 4 to Item 402(b) of Regulation S-K, it is not
required to disclose the performance target level factors used to determine
executive incentive compensation by the Company (collectively, the &#8220;Target
Levels&#8221;) for the reasons set forth in its response letter dated July 16,
2009.&#160;&#160;The Company will provide expanded disclosure relative to how it
arrived at and why it paid each particular level of compensation to its named
executive officers in future filings.</font></div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">11</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Incentive Compensation, page
16</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Comment:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td align="right" style="WIDTH: 72pt">
              <div><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">7.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We
      note that you disclose the target incentive compensation award for each
      named executive officer as a percentage of base salary. We further note
      that you disclose the categories of performance objectives used by the
      Company in determining such awards, as well as the impact of each such
      objective as a percentage of the total award. Please enhance your
      disclosure to include an analysis of how the target percentage for each
      executive officer was determined and why the Compensation Committee
      believed such target was
appropriate.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Response:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company supplementally informs the staff that the 50% - 65% of base salary
annual Incentive Compensation targets were established after consideration of an
employee&#8217;s total potential compensation.&#160;&#160;As stated in the response to
question number 5 above, base salary is typically established at amounts lower
than suggested amounts as outlined in the third party compensation
survey.&#160;&#160;In addition, the Compensation Committee considered typical
bonuses as a percentage of base salary provided by peer <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">companies
as identified through the review of peer Company proxy filings as well as
through review of the third party compensation survey, noting that the Company&#8217;s
bonus percentages are generally less than those of its peers.&#160;&#160;After
consideration of both factors, the Compensation Committee determined that
targets of 50% - 65% were appropriate.&#160;&#160;Of the named executive
officers, all utilized a 50% target, with the exception of the Chief Executive
Officer whose target was established at 65%.</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The 0% -
200% of base salary earnings range for cash bonuses was established by the
Compensation Committee after considering the associated financial impact (namely
the financial impact based on exceeding such targets versus the related
financial detriment of paying the incremental cash bonus award).&#160;&#160;For
any fiscal year, total awards paid to a business unit may not exceed an amount
equal to 20% of net profit after tax for that business.&#160;&#160;The
percentages utilized are consistent with prior periods.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">As noted
within the Company&#8217;s Definitive Proxy Statement, incentive compensation is based
on the achievement of revenue targets, weighted at 35%; pretax income targets,
weighted at 35%; inventory turnover targets, weighted at 15% (for applicable
businesses); and accounts receivable turnover, weighted at 15% (inventory and
accounts receivable are the most significant drivers of operating cash
flow).&#160;&#160;These benchmarks were established by the Company based on its
determination that its shareholders and financial statement users focus
primarily on three major financial performing metrics evenly, namely revenue,
pretax income from operations, and operating cash flow.&#160;&#160;As such, the
Company determined it appropriate to align its incentive compensation benchmarks
with those utilized by investors in assessing the Company&#8217;s
operations.&#160;&#160;The Company will provide expanded disclosure in future
filings.</font></div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">12</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Comment:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td align="right" style="WIDTH: 72pt">
              <div><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">8.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We
      note that in response to comment 1 to our letter dated July 1, 2009,
      regarding your Form 10-K for the fiscal year ended December 31, 2008, you
      undertook to provide information in future filings &#8220;that gives definition
      to the degree of difficulty involved for the [company] to meet the
      [t]arget [l]evels for bonuses.&#8221; Please advise. In your response to us,
      please provide your analysis of how difficult or likely it was intended to
      be for the company to achieve such undisclosed targets in 2009. In
      disclosing the level of difficulty or ease associated with the achievement
      of the undisclosed performance metrics, consider providing disclosure that
      addresses the relationship between historical and future achievement and
      the extent to which you set the incentive parameters based upon a
      probability that you would achieve the performance
    objectives.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Response:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Company supplementally clarifies to
the staff that the established performance goals are set with a reasonably high
probability of being achieved, noting the performance goals are based on the
Company&#8217;s annual operating plan for its businesses.&#160;&#160;It is the
Company&#8217;s historical practice that performance targets should be established at
reasonable levels with a high probability of achievement (while still promoting
growth and profitability), as to not create unnecessary pressures on its
businesses.&#160;&#160;In the last five completed fiscal years, &#8220;target&#8221;
performance has been reached approximately 20% of the time.&#160;&#160;This
achievement is lower than what the Company would expect and is the result of
economic challenges experienced by its businesses and related markets over
recent fiscal years.&#160;&#160;It is the Company&#8217;s expectation that this
achievement percentage will improve in subsequent periods, and this variance is
not indicative of unreasonable performance targets being utilized.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 40.5pt"></font>Incentive compensation begins to be
awarded when more than 80% of the target objective has been satisfied (except
for the revenue target which begins when more than 90% of the target has been
achieved).&#160;&#160;Bonuses are awarded only to the extent that performance
exceeds the minimum percentage and are computed on a linear basis&#8212;for example,
incentive compensation with respect to a business unit&#8217;s revenue performance, if
revenues equaled 92% of the Target Level for such business unit, would equal 20%
of the target bonus if 100% of the Target Level had been attained.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 40.5pt"></font>Over the prior five years, incentive
compensation with respect to a particular business unit&#8217;s performance, on a
weighted basis, in respect of all criteria on which such business unit&#8217;s
performance is measured, has ranged from 0% of targeted bonus paid to 133% of
target bonus paid.&#160;&#160;With respect to the corporate officers whose
incentive compensation is based on all reporting business units&#8217; performance,
only in one year of the five have those officers received the full amount of the
targeted bonus.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Company will undertake in future
filings to provide the information that gives definition to the degree of
difficulty involved for the Company to meet the Target Levels for
bonuses.&#160;&#160;Accordingly, while noting that any number of economic,
business and cultural factors may vary anticipated results, the Company
anticipates that the achievement of the Target Levels necessary to trigger
payment of some level of incentive compensation are likely to be achieved by the
named executive and the Company, respectively.</font></div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">13</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Comment:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td align="right" style="WIDTH: 72pt">
              <div><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">9.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">You
      indicate that the target incentive compensation award (assuming 100%
      achievement) for each of Messrs. Casciano, Constantino and Cortese was 50%
      of base salary. However, based on disclosure contained in the Grant of
      Plan-Based Awards table, it appears as though the target for Mr.
      Constantino was actually closer to 57%. Please
  advise.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Response:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company supplementally clarifies for the staff that Mr. Constantino&#8217;s base
salary for fiscal year 2009 was $250,000.&#160;&#160;However, as disclosed in
footnote 1 of the Summary Compensation table, the amount in column C represents
base salary actually paid to Mr. Constantino which was $221,310 in
2009.&#160;&#160;This variance from his base salary was the result of Mr.
Constantino taking leave without pay during fiscal year 2009.&#160;&#160;Target
incentive compensation is a function of the named executive officer&#8217;s base
salary, not necessarily actual salary paid.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Equity Compensation, page
18</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Comment:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td align="right" style="WIDTH: 72pt">
              <div><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">You
      indicate that the company may grant restricted stock awards and/or stock
      options to named executive officers other than Messrs. Sammon and
      Constantino. Please explain to us why those two named executive officers
      are not eligible to receive equity compensation pursuant to the 2005
      Equity Incentive Plan.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Response:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company supplementally informs the staff that while Dr. Sammon and Mr.
Constantino are eligible under the terms of the Company&#8217;s 2005 Equity Incentive
Plan, it has been a long standing practice of the Company to exclude Dr. Sammon
and Mr. Constantino from consideration for grants under its equity incentive
plans.&#160;&#160;The philosophy of the Company in making equity grants is to
provide long-term financial incentives to employees that relate to shareholder
value.&#160;&#160;Both Dr. Sammon and Mr. Constantino became substantial
shareholders of the Company before the Company became </font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">publicly-owned
and have historically and are presently viewed by the Company to have existing
substantial interests in maximizing the value of the Company&#8217;s Common
Stock.&#160;&#160;While there are no provisions under the Company&#8217;s 2005 Equity
Incentive Plan that preclude Dr. Sammon or Mr. Constantino from receiving grants
under the plan, in the interest of full disclosure it was believed to be
appropriate to provide detailed disclosure on the Company&#8217;s
practice.&#160;&#160;The Company will consider expanding this disclosure in
future filings.</font></div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">14</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Severance Policy, page
20</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Comment:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td align="right" style="WIDTH: 72pt">
              <div><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">11.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We
      note that you have entered into employment agreements with each Messrs.
      Soladay and Cortese which expressly provide for certain severance
      arrangements. Please revise your disclosure to provide all of the
      information required by item 402(j) of Regulation S-K. In particular,
      please identify the specific circumstances that would trigger payment or
      the provision of benefits by defining &#8220;termination without cause.&#8221; Please
      also quantify the estimated payments and benefits for each named executive
      officer that would be provided in each covered circumstance, and describe
      and explain how the appropriate payment and benefit levels are determined.
      Refer to Instruction 1 to Item 402(j) of Regulation S-K. Additionally,
      pursuant to Item 601(b)(10)(iii)(A) of Regulation S-K, please file the
      aforementioned employment agreements or provide us with your analysis as
      to why such agreements are not required to be
  filed.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Response:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company supplementally informs the staff that under the employment arrangement
with Mr. Soladay, if Mr. Soladay is terminated by ParTech, Inc. (&#8220;ParTech&#8221;) for
&#8220;Cause,&#8221; the Company and its subsidiary, ParTech, of which Mr. Soladay is
President, will have no liability or obligation to Mr. Soladay other than the
payment of any portion of Mr. Soladay&#8217;s annual salary which, at the time of
termination, has been earned but not yet paid and any accrued but not yet
received benefits (i.e. unused vacation hours).&#160;&#160;All vesting of stock
options shall cease as of the date of termination for Cause.&#160;&#160;Under
the employment arrangement, the Company may terminate Mr. Soladay&#8217;s employment
for &#8220;Cause&#8221; in the following circumstances:&#160;&#160;(i) Mr. Soladay&#8217;s failure
or refusal to follow, after receipt of written notice and opportunity to cure,
any written rules or policies of Company or ParTech; (ii) embezzlement, theft,
misappropriation of assets or property (tangible or intangible) of the Company
or ParTech or material dishonesty; (iii) gross negligence, misconduct, fraud or
breach of fiduciary duty to the Company or ParTech; (iv) violation of federal or
state securities laws; (v) breach of employment agreement or any other agreement
with the Company or ParTech; (vi) unauthorized disclosure or use of any trade
secret or confidential information of the Company or ParTech; (vii) act(s)
creating adverse publicity for the Company or ParTech; (viii) breach of any
representations made to the Company or ParTech; or (ix) conviction, including
plea of nolo contendre, of a felony or other crime involving moral
turpitude.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">To
quantify the severance arrangement with Mr. Soladay, in the event Mr. Soladay
was terminated on December 31, 2009 and such termination was other than for
Cause as defined by his employment agreement, Mr. Soladay would be eligible to
receive two full years of his annual base salary of $325,000 or a total of
$650,000 paid bi-weekly in 52 equal increments of $12,500 less applicable
withholdings.&#160;&#160;The payment of severance payments is contingent upon
and subject to Mr. Soladay (a) executing a mutually agreed upon release of all
claims and (b) Mr. Soladay&#8217;s continued compliance with confidentiality and
non-compete obligations during the severance period.&#160;&#160;In addition to
severance payments, stock options representing 56,000 shares granted at the
price of $5.68 per share would immediately vest resulting in Mr. Soladay
possessing stock options representing a total of 125,000 shares of the Company&#8217;s
Common Stock.&#160;&#160;Pursuant to the terms of the Company&#8217;s 2005 Equity
Incentive Plan, <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">such
options would survive for a period of ninety (90) calendar days following the
date of termination.&#160;&#160;Hypothetically, if exercised and sold
immediately on the first trading day following December 31, 2009, (January 4,
2010) on which the fair market value of the Company&#8217;s Common Stock was $5.81,
Mr. Soladay would have realized $0.21 per share or a total of
$26,250.</font></font></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">A copy of Mr. Soladay&#8217;s employment agreement was furnished to the
SEC on May 11, 2009, in connection with the Company&#8217;s 10-Q filing for the first
fiscal quarter of 2009.</div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">15</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
employment agreement for Mr. Cortese became effective January 1, 2009 in
connection with the position of Executive Vice President, Office of the
Chairman.&#160;&#160;Under the employment agreement with Mr. Cortese, if Mr.
Cortese is terminated by the Company for &#8220;Cause,&#8221; the Company will have no
liability or obligation to Mr. Cortese other than the payment of any portion of
Mr. Cortese&#8217;s annual salary which, at the time of termination, has been earned
but not yet paid and any accrued but not yet received benefits (i.e. unused
vacation hours).&#160;&#160;Under the employment arrangement, the Company may
terminate Mr. Cortese&#8217;s employment for &#8220;Cause&#8221; in the following
circumstances:&#160;&#160;(i) willful negligence resulting in substantial damage
to the Company; (ii) violation of certain identified Company policies relating
to ethics and compliance; (iii) indictment for, plea of guilty or nolo
contendre, or conviction of a felony related to the Company&#8217;s business, or a
crime involving dishonesty, misappropriation of any funds or property, fraud or
embezzlement or immoral conduct that adversely affects the Company&#8217;s business;
or (iv) breach of confidentiality.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">To
quantify the severance arrangement with Mr. Cortese, in the event Mr. Cortese
was terminated on December 31, 2009 and such termination was other than for
Cause as defined by his employment agreement, Mr. Cortese would have been
eligible to receive one year of his annual base salary of $250,000 paid
bi-weekly in 26 equal increments of $9,615.38 less applicable withholdings. The
payment of severance payments is contingent upon and subject to Mr. Cortese (a)
executing a mutually agreed upon release of all claims which shall include an
agreement by Mr. Cortese not to disparage the Company and (b) Mr. Cortese&#8217;s
continued compliance with confidentiality obligations during the severance
period.&#160;&#160;In addition to these severance payments, the Company would
provide a monthly contribution of $849 toward Mr. Cortese&#8217;s COBRA payment during
the twelve month severance period and up to $3,500 toward the procurement of a
life insurance policy.&#160;&#160;As of December 31, 2009, Mr. Cortese possessed
stock options representing 206,373 shares of the Company&#8217;s Common Stock granted
at the price of $2.04 per share.&#160;&#160;Pursuant to the terms of the
Company&#8217;s 1995 Stock Option Plan under which the options were granted, such
options would survive for a period of ninety (90) calendar days following the
date of termination.&#160;&#160;Hypothetically, if exercised and sold
immediately on the first trading day following December 31, 2009 (January 4,
2010)&#160;on which the fair market value of the Company&#8217;s Common Stock was
$5.81, Mr. Cortese would have realized $3.77 per share or a total of
$778,026.21.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
duties of Mr. Cortese as enumerated in the employment agreement were: (i)
investor relations (including road shows, investor conferences, quarterly
reporting, annual meeting); (ii) business development activities; (iii)
potential merger and acquisition analysis and related M&amp;A activities; (iv)
oversight of the legal department and provision of business direction on major
legal projects; (v) oversight and support of restaurant channel expansion; (vi)
oversight of PAR Springer-Miller Systems, Inc.; (vii) executive leadership of
the Company&#8217;s ERP project; and such other duties and responsibilities as may be
assigned by the President and CEO.&#160;&#160;A review of Mr. Cortese duties and
responsibilities indicated that the position held by Mr. Cortese did not rise to
the level of being in charge of a principal business unit, division or function
of the Company or performing a policy making function for the
Company.&#160;&#160;As a result, Mr. Cortese&#8217;s position was viewed as a staff
position rather than an executive officer pursuant to Rule 3b-7 under the
Exchange Act (17 CFR 240.3b-7).&#160;&#160;Consequently, the employment
agreement with Mr. Cortese was not determined to be a material contract under
Item 601(a)(10)(iii)(A) and not required to be filed.&#160;&#160;However, the
compensation level of Mr. Cortese qualified him as a named executive officer
pursuant to 17 CFR 229.402(a)(3)(iv) as his compensation for the Company&#8217;s last
completed fiscal year was greater than that of Mr. Constantino, the Executive
Officer of <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">the
Company with the lowest level of compensation.&#160;&#160;As a result it was
determined that the agreement with Mr. Cortese was required to be described in
the Company&#8217;s Definitive Proxy Statement.&#160;&#160;&#160;The Company will
include expanded disclosure in this regard in future
filings.</font></font></div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">16</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Consolidated Financial
Statements</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Note 3. Inventories, page
64</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Comment:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td align="right" style="WIDTH: 72pt">
              <div><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">12.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We
      note from your disclosure that you record inventory reserves for shrinkage
      and excess and obsolete inventory. Tell us how you considered the guidance
      in ASC 330-10-35-14, which indicates that inventory write-downs establish
      a new cost basis and should not be presented as a
  reserve.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Response:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company supplementally clarifies for the staff that in accordance with the
guidance in ASC 330-10-35-14, when the Company writes down its inventory below
cost, the reduced cost is considered the cost for subsequent accounting
purposes.&#160;&#160;This reduced cost is the basis for the inventory balance
included within the consolidated balance sheet and related
footnotes.&#160;&#160;The Company will eliminate the disclosure of the reserve
(the amount to which inventory was written down) in future filings.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Note 7. Income Taxes, page
70</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Comment:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td align="right" style="WIDTH: 72pt">
              <div><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">13.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Tell
      us how you considered disclosing the components of &#8220;Income (loss) before
      provision for income taxes&#8221; as either domestic or foreign. See Rule
      4-08(h)(1)(i) of Regulation S-X.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Response:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Company supplementally informs the
staff that when considering disclosing the components of income (loss) before
provision for income taxes as either domestic or foreign the Company considered
that historically the income (loss) generated from foreign operations has not
been material and that this amount is generated principally by foreign branches
of the U.S. corporation for which the income (loss) is taxed at the Federal
statutory rate.&#160;&#160;As a result, the Company did not disclose the
domestic and foreign components of income (loss) before provision for income
taxes.&#160; To the extent that the amount of foreign income (loss) should
become significant, the Company will provide the disclosure of the components of
income (loss) before provision for income taxes as either domestic or foreign in
future filings.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Comment:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td align="right" style="WIDTH: 72pt">
              <div><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">14.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We
      note your reference to uncertain tax positions on page 71. Please tell us
      how you considered the disclosures required by ASC
      740-10-50-15.</font></div>
            </td>
          </tr></table>
    </div><br>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Response:</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company supplementally informs the staff that it considers its uncertain tax
positions to be immaterial both quantitatively and qualitatively and therefore
did not provide for disclosure as required by ASC 740-10-50-15.&#160;&#160;The
Company will continue to assess this materiality on a quarterly basis and will
provide the required disclosure as necessary.</font><br></div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">17</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">PAR
hereby acknowledges as follows:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 36pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">PAR
      is responsible for the adequacy and accuracy of the disclosures in its
      filing;</font></div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 36pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">PAR
      understands that staff comments or changes to disclosures in response to
      staff&#160;&#160;comments do not foreclose the Commission from taking any
      action with respect to PAR's filing;
and</font></div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
<tr valign="top">
            <td style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 36pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">PAR
      understands that it may not assert staff comments as a defense in any
      proceeding initiated by the Commission or any person under the federal
      securities laws of the United
States.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Please
contact the undersigned at (800) 448-6505, extension 273, should you require
additional information or have questions regarding this letter.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br>&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Very
truly yours,</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">PAR
Technology Corporation</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">By:
/s/Ronald J. Casciano</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">-------------------------------------</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Ronald J.
Casciano, Vice President,</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Chief
Financial Officer, Treasurer</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">and Chief
Accounting Officer</font></div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">&#160;</div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">18</font></div>
      </div>
      <div id="HDR">&#160;</div>
    </div>
  </body>
</html>




</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
