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<SEC-DOCUMENT>0001104659-09-043134.txt : 20100803
<SEC-HEADER>0001104659-09-043134.hdr.sgml : 20100803
<ACCEPTANCE-DATETIME>20090714171517
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001104659-09-043134
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20090714

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FORGENT NETWORKS  INC
		CENTRAL INDEX KEY:			0000884144
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373]
		IRS NUMBER:				742415696
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		108 WILD BASIN RD
		CITY:			AUSTIN
		STATE:			TX
		ZIP:			78746
		BUSINESS PHONE:		5124372700

	MAIL ADDRESS:	
		STREET 1:		108 WILD BASIN RD
		CITY:			AUSTIN
		STATE:			TX
		ZIP:			78746

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FORGENT NETWORKS  INC
		DATE OF NAME CHANGE:	20020215

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	VTEL CORP
		DATE OF NAME CHANGE:	19960401

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	VIDEO TELECOM CORP
		DATE OF NAME CHANGE:	19960401
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>

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<body lang="EN-US">

<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July&nbsp;14, 2009</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">direct
dial: 817.420.8225</font></p>

<p style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">jhoover@winstead.com</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Via Federal Express</font></u></i></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ms.&nbsp;Song P. Brandon</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Division of Corporation
Finance</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Securities and Exchange
Commission</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">100 F. Street, N.E.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Washington, D.C.&#160; 20549</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Re:</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Response to
Comments Received from the Staff of the Commission with respect to the Revised Preliminary
Proxy Statement on Schedule&nbsp;14A filed July&nbsp;2,&nbsp;2009 (File&nbsp;No.&nbsp;0-20008)
and the Definitive&nbsp;Soliciting Materials filed on June&nbsp;17, 2009 and July&nbsp;1,
2009 (File No.&nbsp;0-20008) of Forgent&nbsp;Networks,&nbsp;Inc.</font></p>

<p style="margin:0in .5in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear Ms.&nbsp;Brandon:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As legal counsel to Forgent Networks,&nbsp;Inc.
(the &#147;Company&#148;), this letter sets forth the responses of the Company to the
comments of the staff of the Division of Corporation Finance (the &#147;Staff&#148;) of
the Securities&nbsp;and Exchange Commission (the &#147;Commission&#148;) received by
letter dated July&nbsp;10, 2009 (the &#147;Comment Letter&#148;) with respect to the
above-referenced Schedule 14A (the &#147;Schedule 14A&#148; or &#147;Proxy&nbsp;Statement&#148;)
and Definitive Soliciting Materials.&#160;
Enclosed herewith is one clean and one black-lined copy of Amendment No.&nbsp;2
to the Schedule 14A, which, in response to the Comment&nbsp;Letter, includes
revisions to the Schedule&nbsp;14A.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For the convenience of the
Staff, we have set forth below, in boldface type, the number of each comment in
the Comment Letter followed by the Company&#146;s responses thereto.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-decoration:underline;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Revised Preliminary Proxy Statement on Schedule 14A</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><font style="font-weight:bold;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">We have revised the disclosure as requested.</font></b></font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><font style="font-weight:bold;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">We have revised the disclosure as requested</font></b></font><font size="2" style="font-size:10.0pt;">.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Definitive Soliciting
Materials Filed June&nbsp;17, 2009</font></u></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><font size="2" style="font-size:10.0pt;">We understand
that each statement or assertion of opinion or belief contained in the Company&#146;s
soliciting materials must be clearly characterized as such.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><font size="2" style="font-size:10.0pt;">Although we
respectfully disagree with your belief that our supplemental documentation does
not support the Company&#146;s statement that &#147;Pinnacle is attempting to seize
control of your company without a tender offer, a deceptive tactic they have
used to fools investors in other proxy contests,&#148; we confirm that in future
filings the Company will refrain from</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">using such statement and
other similar statements, to the extent it does not have documentation
supporting such statements.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-decoration:underline;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Definitive Soliciting Material Filed on July&nbsp;1,
2009</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><font size="2" style="font-size:10.0pt;">We respectfully
disagree with your implication that the Company has made statements in its
soliciting materials regarding Red Oak Partners, LLC, The Red Oak Fund, LP,
Pinnacle Fund, LLP, Bear Market Opportunity Fund, L.P., Pinnacle Partners, LLC
and David Sandberg (collectively,&nbsp;&#147;Pinnacle/Red Oak&#148;) that violate Rule&nbsp;14a-9.&#160; That being said, we do understand that the
Company must avoid statements that directly or indirectly impugn the character,
integrity, or personal reputation or make charges of illegal or immoral conduct
without factual foundation, and that the Company should not use these or
similar statements in its soliciting materials without providing a proper
factual foundation for the statements.&#160;
We would also respectfully request that you provide similar commentary
to Pinnacle/Red Oak as we believe it has made numerous statements in its
soliciting materials which appear to violate Rule&nbsp;14a-9.&#160; If such statements are not false or
misleading, then they certainly fail to provide the necessary factual
foundation required by Rule&nbsp;14a-9 so they are not misleading to the
Company, its stockholders and the greater investing public.</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With respect to the specific
statements cited in your Comment Letter, please consider the following illustrative
support for such statements:</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i><font size="2" style="font-size:10.0pt;font-style:italic;">&#147;Asure Software Cautions
Stockholders Not to Be Misled by the Deceptive Tactics and Statements of Red
Oak Partners and Pinnacle Fund.&#148;</font></i></p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In its June&nbsp;4, 2009 press release, Pinnacle/Red
Oak stated: &#147;Although clearly prepared to do so, we hope to not have to engage
ASUR in another costly proxy contest and instead wish to work with its Board as
soon as possible towards cost reductions and Board elections.&#148;&#160; <i>See</i>
Pinnacle/Red Oak&#146;s Soliciting Material Under Rule&nbsp;14a-12 filed on June&nbsp;5,
2009.&#160; Several weeks later, on June&nbsp;29,
2009, Pinnacle/Red Oak filed additional soliciting material which, among other
things, refuted the Company&#146;s skepticism regarding Pinnacle/Red Oak&#146;s true
intentions (<i>i.e.</i>, a possible move to gain control of
the Company without paying a premium and/or without effecting a tender
offer).&#160; Notwithstanding these public
statements by Pinnacle/ Red Oak, the Company&#146;s skepticism remains based on a
variety of developments, including the fact that Pinnacle/Red Oak has increased
its shareholdings in the Company from approximately 7.35% to 10.2% during the
month of June&nbsp;2009.&#160; <i>See</i> Pinnacle/Red Oak&#146;s (i)&nbsp;Schedule
13D (Amendment&nbsp;No.&nbsp;5) filed on June&nbsp;17, 2009, (ii)&nbsp;Schedule
13D (Amendment No.&nbsp;6) filed on June&nbsp;18, 2009, (iii)&nbsp;Schedule 13D
(Amendment No.&nbsp;7), Form&nbsp;3, and Form&nbsp;4 filed on June&nbsp;23,
2009, and (iv)&nbsp;Form&nbsp;4 filed on June&nbsp;29, 2009.&#160; The Company also finds the following excerpt posted
on the Hackensack Blog </font><font size="2" style="font-size:10.0pt;">(available at </font><font size="2" style="font-size:10.0pt;">http://thehackensack.blogspot.com/2009/05/penny-ante-arbitrage-update-iii.html</font><font size="2" style="font-size:10.0pt;">) </font><font size="2" style="font-size:10.0pt;">on May&nbsp;4, 2009 as providing further
evidence of Pinnacle/Red Oak&#146;s true intentions (and which appears consistent
with Pinnacle/Red Oak&#146;s significant acquisitions of the Company&#146;s common stock):</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 1.25in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">David Sandberg of Red Oak
Partners was kind enough to spend a few minutes on the phone with me discussing
this today, and, in addition to reiterating some of the points in his two
letters to Asure&#146;s management, he mentioned that he invested in this stock with
a higher price target in mind than 36 cents per share.&#160; He said that he could have easily had an
assistant open a bunch of accounts holding 749 shares each, but he thought he
could unlock more value by getting more effective management in place.&#160; He noted the cash on the company&#146;s balance
sheet, that both of the company&#146;s businesses are high-margin ones, and said he
thought a 70 cent price target was reasonable for the stock, given more
effective management.</font></p>

<p align="left" style="margin:0in .5in .0001pt 1.25in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As further evidence of deceptive tactics, in its June&nbsp;4,
2009 press release, Pinnacle/Red Oak touted its &#147;superb slate of Board
candidates which includes two prior Board members of Iemployee [sic] who served
while it was a thriving and growing company.&#148;&#160;
<i>See</i> Pinnacle/Red Oak&#146;s Soliciting
Material Under Rule&nbsp;14a-12 filed on June&nbsp;5, 2009.&#160; At the time of the Company&#146;s acquisition of
iEmployee in 2007, iEmployee had little to no cash, did not follow GAAP
accounting standards, was bloated in headcount, lacked effective sales and
marketing programs, and suffered from high customer attrition rates.&#160; All of this occurred during the watch of the two
nominees referenced above (Messrs.&nbsp;Goepel and Graham), who were board
members of iEmployee at the time.&#160; The
above-referenced statement from Pinnacle/Red Oak&#146;s June&nbsp;5, 2009 press
release is thus misleading by insinuating that two of its nominees have a
successful track record in running the iEmployee business.</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As another more recent example of deception on the
part of Pinnacle/Red Oak, Pinnacle/Red Oak has provided misleading information
regarding the Company&#146;s current directors. &#160;For example, Pinnacle/Red Oak has stated: &#147;During
this time [since 2003], [the Company&#146;s] Directors have not bought stock yet
have repriced their own options not once but twice.&#148;&#160; <i>See</i>
Pinnacle/Red Oak&#146;s Soliciting Material Under Rule&nbsp;14a-12 filed on July&nbsp;7,
2009.&#160; This statement is not only
misleading but false.&#160; Three of the
Company&#146;s current directors have directly purchased Company common stock since
2003 (Mr.&nbsp;Agnich purchased 50,000 shares in 2007, Mr.&nbsp;Wells purchased
10,000 shares in 2006, and Mr.&nbsp;Miles purchase 4,000 shares in 2004).&#160; Furthermore, the cited option repricings only
applied to employee stock options and were adopted by the Company&#146;s board as &#147;the
most cost effective way to motivate employees with options that had exercise
prices greater than the current fair market value.&#148;&#160; <i>See </i>the
Company&#146;s Forms 10-Q filed on December&nbsp;14, 2005 and December&nbsp;15,
2006, respectively.&#160; The Company has
never repriced its director stock options and a careful reading of the Company&#146;s
publicly filed materials by Pinnacle/Red Oak would have revealed this fact.</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Finally, we would like to point out that Pinnacle/Red
Oak has repeatedly submitted filings to the Commission under the incorrect
cover of &#147;Filed by the Registrant&#148; (rather than &#147;Filed by a Party other than
the Registrant&#148;).<i>&#160; See</i>
Proxy Statement filings </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">on July&nbsp;10</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font><font size="2" style="font-size:10.0pt;">&#160;and May&nbsp;28</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font><font size="2" style="font-size:10.0pt;">&#160;and Soliciting Material Under Rule&nbsp;14a-12
filings on July&nbsp;7</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font><font size="2" style="font-size:10.0pt;">, June&nbsp;29</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font><font size="2" style="font-size:10.0pt;">,
June&nbsp;5</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font><font size="2" style="font-size:10.0pt;">, May&nbsp;29</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font><font size="2" style="font-size:10.0pt;">,
and May&nbsp;28</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font><font size="2" style="font-size:10.0pt;">.</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i><font size="2" style="font-size:10.0pt;font-style:italic;">The notion that the statements
made by Red Oak Partners and Pinnacle Fund made &#147;misleading statements&#148; in
their June&nbsp;29, 2009 press release.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;page-break-after:avoid;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the second paragraph of Pinnacle/Red Oak&#146;s June&nbsp;29, 2009 press
release, David&nbsp;Sandberg criticizes the Company for its &#147;unwillingness to
communicate with its shareholders&#148; and for not permitting shareholders to ask
questions on the Company&#146;s June&nbsp;18</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font><font size="2" style="font-size:10.0pt;">&#160;earnings call.&#160;
<i>See</i> Exhibit&nbsp;Q to Pinnacle/Red Oak&#146;s
Soliciting Material Under Rule&nbsp;14a-12 filed on June&nbsp;29, 2009. &#160;The Company has an excellent and demonstrated history of transparency and full disclosure
to stockholders.&#160; Moreover, the assertion
regarding the earnings statement is false.&#160;
On earning calls, the Company&#146;s long-time policy is to take
questions from analysts and registered brokers only.&#160; Private investors are not and never have been
eligible to ask questions on earnings calls.&#160;
Pinnacle/Red Oak was the only party in the queue qualified to ask a
question on the June&nbsp;18</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font><font size="2" style="font-size:10.0pt;">&#160;earnings call and, by Mr.&nbsp;Sandberg&#146;s own
admission, Pinnacle/Red&nbsp;Oak refrained from asking questions as its
participation could be deemed inappropriate given the adversary relationship
resulting from Pinnacle/Red&nbsp;Oak&#146;s instigation of the proxy fight.</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;page-break-after:avoid;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In its June&nbsp;29, 2009 press release, Pinnacle/Red
Oak also questioned the compensation paid to the son of the Company&#146;s Chairman
and the amounts spent by the Company in reimbursing its executives for
physicals at the Cooper Clinic in Dallas.&#160;&#160;&#160;
<i>See</i> Exhibit&nbsp;Q to Pinnacle/Red Oak&#146;s
Soliciting Material Under Rule&nbsp;14a-12 filed on June&nbsp;29, 2009.&#160; Pinnacle/Red Oak statements imply that the
Company is being secretive in disclosing material information and, in its later
soliciting materials, Pinnacle/Red Oak further implies that these expenditures
represent &#147;wasteful spending.&#148;&#160; <i>See</i> Pinnacle/Red Oak&#146;s Soliciting Material Under Rule&nbsp;14a-12
filed on July&nbsp;7, 2009 and preliminary proxy statement filings relating to
the Company&#146;s upcoming annual stockholders meeting.&#160; However, Pinnacle/Red Oak has no knowledge or
other factual basis for taking these positions.&#160;
In fact, the average annual compensation paid to the Chairman&#146;s son
($67,000) falls within the median range of all internal sales staff and the
Company has spent a modest $749 per executive per year for the cost of annual
physicals at the Cooper Clinic over the past seven years.</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the fifth paragraph of Pinnacle/Red Oak&#146;s June&nbsp;29,
2008 soliciting materials, Pinnacle/Red Oak asserts that it has obtained &#147;the
final Go-Private vote tally for non-objecting beneficial holders as provided
from Broadridge to Pinnacle&#148; and then attaches the asserted voting results as
an exhibit to its soliciting materials.&#160; <i>See</i> Pinnacle/Red&nbsp;Oak&#146;s Soliciting Material Under Rule&nbsp;14a-12
filed on June&nbsp;29, 2009.&#160; The Company
is still investigating the source of this information as it has been informed
that Broadridge did not provide voting data to Pinnacle/Red Oak.&#160; Furthermore, given that the special
stockholders meeting to vote on the going private </font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

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<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">proposal was cancelled, there are no final voting
results.&#160; It is misleading to imply
otherwise based on the incomplete results of a cancelled meeting.</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the seventh paragraph of Pinnacle/Red Oak&#146;s June&nbsp;29,
2008 soliciting materials, the following statement was made: &#147;our prior
communications detailed a comprehensive process for review as well as plans to
reduce excessive management compensation, excessive provider costs, and to
enact a reverse split coupled with a stock purchase plan in order to maintain a
NASDAQ listing and to provide for potentially accretive share repurchases.&#148;&#160; <i>See</i>
Pinnacle/Red Oak&#146;s Soliciting Material Under Rule&nbsp;14a-12 filed on June&nbsp;29,
2009.&#160; While it is true that Pinnacle/Red
Oak have been consistently critical of the Company in these areas, it has
failed to provide any meaningful detail or &#147;comprehensive process.&#148;&#160; Rather, it has simply provided a laundry list
of criticisms and unsubstantiated proposals.&#160;
<i>See</i> bullet point listings under the
heading &#147;Proposed Approach&#148; in Exhibit&nbsp;E to Pinnacle/Red Oak&#146;s Soliciting
Material Under Rule&nbsp;14a-12 filed on June&nbsp;29, 2009.</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i><font size="2" style="font-size:10.0pt;font-style:italic;">&#147;. . . Red Oak Partners, Pinnacle
Fund and its portfolio manager, David Sandberg, are again perpetuating
misperceptions and spreading false allegations about a company [Forgent] . . .
in an attempt to gain unwarranted support for their effort to take control of
the Company without paying a premium.&#148;</font></i></p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The above-referenced
statement was based upon publicly available information regarding pending
litigation between Pinnacle/Red Oak and other public issuers.&#160; Specifically, in February&nbsp;2009, CLST
Holdings,&nbsp;Inc. (&#147;CLST&#148;) filed a lawsuit in federal court against
Pinnacle/Red Oak alleging that Pinnacle/Red Oak had engaged in numerous
violations of federal securities laws in making recent purchases of CLST common
stock and seeking to enjoin future unlawful purchases of such stock.&#160; A month later, Pinnacle/Red Oak filed a
derivative lawsuit against the CLST board alleging violations of director
fiduciary duties.&#160; As a result of this
pending litigation, the CLST board determined to delay CLST&#146;s annual
stockholders meetings from its previously scheduled date of May&nbsp;22, 2009
to September&nbsp;25, 2009.&#160; <i>See</i> CLST&#146;s Form&nbsp;10-Q filed on April&nbsp;14,&nbsp;2009.</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i><font size="2" style="font-size:10.0pt;font-style:italic;">The notion that Red Oak Partners
has &#147;a reputation for aggressively attacking companies for short-term gains . .
..&#148;</font></i></p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
addition to the pending lawsuit between CLST and Pinnacle/Red Oak cited above, Pinnacle/Red
Oak recently engaged in a contentious matter with another publicly-held issuer,
SMTC&nbsp;Corporation (&#147;SMTC&#148;).&#160;
Specifically, Pinnacle/Red Oak acquired significant shareholdings of SMTC
stock prior to SMTC&#146;s 2008 annual stockholders meeting, commenced a proxy fight
over the underlying director elections, and ultimately garnered a settlement
agreement with SMTC prior to the date of the meeting.&#160; Regarding its stock acquisitions, Pinnacle/Red
Oak increased its holdings of the outstanding SMTC common stock from 5.08% to
17.2% in a 4-month window in early 2008.&#160;
<i>See </i>Pinnacle/Red Oak&#146;s
amended Schedule 13G filings in January&nbsp;2008 and eventual Schedule 13D
filing on April&nbsp;1, 2008.&#160; Within its
initial Schedule&nbsp;13D </font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

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<p style="margin:0in 0in .0001pt .75in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">filing,
Pinnacle/Red Oak announced its intent to nominate four directors for election
to the SMTC board and noted: &#147;If we must engage in a proxy contest, we are
prepared to do so in an expeditious and civil manner.&#148;&#160; SMTC filed its preliminary proxy statement
for the annual stockholders meeting on June&nbsp;10, 2009 and entered into a
settlement agreement with Pinnacle/Red Oak six days later.&#160; <i>See </i>SMTC&#146;s
Form&nbsp;8-K filed June&nbsp;16, 2008.&#160;
Pursuant to the settlement agreement, SMTC made numerous concessions to
Pinnacle/Red Oak regarding the ultimate composition and structure of the SMTC
board, among other items.&#160; From the
Company&#146;s perspective, SMTC was forced to make concessions in the face of
Pinnacle/Red Oak aggressive stock acquisition tactics.</font></p>

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<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i><font size="2" style="font-size:10.0pt;font-style:italic;">&#147;We have found Pinnacle/Red Oak
to be disingenuous in its communications with Asure stockholders, publicly
stating several times that it did not desire to have Board representation, and
then proceeding with a proxy contest.&#148;</font></i></p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the next to last paragraph of Pinnacle/Red Oak&#146;s
press release dated June&nbsp;4, 2009, David&nbsp;Sandberg stated: &#147;Although
clearly prepared to do so, we hope to not have to engage ASUR in another costly
proxy contest and instead wish to work with its Board as soon as possible
towards cost reductions and Board elections.&#148;&#160;
<i>See&nbsp;</i>Pinnacle/Red&nbsp;Oak&#146;s
Schedule 14A filed with the Commission on June&nbsp;5,&nbsp;2009.&#160; However, a week earlier, Pinnacle/Red Oak had
submitted director nomination materials for the upcoming annual stockholders
meeting and, over the following three weeks, Pinnacle/Red Oak increased its
shareholdings in the Company from approximately 7.35% to 10.2% (<i>see </i>first bullet point above).&#160; These two developments appear inconsistent
with the above-referenced statement from the June&nbsp;4</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font><font size="2" style="font-size:10.0pt;">&#160;press release.</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i><font size="2" style="font-size:10.0pt;font-style:italic;">&#147;Frankly, their inconsistent
communications with the company indicate they lack try understanding of the
business and our rapidly evolving markets.&#148;</font></i></p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As indicated above, Pinnacle/Red Oak has repeatedly
criticized management against the backdrop of its own claims for improving the
Company, without providing any meaningful support for those claims.&#160; For example, Pinnacle/Red Oak has proposed an
8-for-1 reverse stock split and a $5 million share repurchase program without disclosing
any supporting calculations, reasoning, etc.&#160;
<i>See</i> bullet point listings under the
heading &#147;Proposed Approach&#148; in Exhibit&nbsp;E to Pinnacle/Red Oak&#146;s Soliciting
Material Under Rule&nbsp;14a-12 filed on June&nbsp;29, 2009.</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">More recently, Pinnacle/Red Oak has stated: &#147;Asure
disclosed in their lawsuit that they now have just over $8 million in cash and
thus have burned a whopping $3&nbsp;million in shareholder money in just 2
months since the April&nbsp;30 quarter ended.&#148;&#160;
<i>See</i> Pinnacle/Red Oak&#146;s Soliciting
Material Under Rule&nbsp;14a-12 filed on July&nbsp;7, 2009.&#160; The Company reported $8.2 million in cash and cash equivalents and $2.9 million in
short-term investments at quarter-end on April&nbsp;30, 2009, which amounts
agree with the figures cited in the lawsuit and refute Pinnacle/Red Oak&#146;s
asserted regarding a $3&nbsp;million cash burn.&#160;
</font><font size="2" style="font-size:10.0pt;">Without intervention or comment from the Commission,
</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pinnacle/Red Oak has since
corrected this misrepresentation in its amended preliminary proxy statement
filing on July&nbsp;10, 2009.&#160; The Company
believe the original misrepresentation is simply another example of
Pinnacle/Red Oak&#146;s carelessness and apparent willingness to compromise accuracy
in the interest of speed when it comes to indicting the Company and its
management.</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><font size="2" style="font-size:10.0pt;">We acknowledge your comment regarding
certain statements in the Company&#146;s soliciting materials.&#160; Although the Company continues to maintain
the validity of these statements, it will refrain from using similar statements
in future filings if substantiating information is not also provided.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With respect to the specific
statements cited in your Comment Letter, please consider the following
illustrative support for such statements:</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i><font size="2" style="font-size:10.0pt;font-style:italic;">The notion that Pinnacle Fund and
Red Oak Partners have a lack of experience with public companies in general.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Based on information
provided to the Company with Pinnacle/Red Oak&#146;s nomination materials, five of
Pinnacle/Red Oak&#146;s six nominees (Messrs.&nbsp;Ferris, Graham, Goepel,
Pertierra, and Vogel) have no apparent prior public company board experience
and the remaining Pinnacle/Red Oak nominee (Mr.&nbsp;Sandberg) has less than
four months of prior public company board experience.<b>&#160; </b></font><i><font size="2" style="font-size:10.0pt;font-style:italic;">See </font></i><font size="2" style="font-size:10.0pt;">Exhibits A and C to Pinnacle/Red&nbsp;Oak&#146;s
Schedule 13D (Amendment No.&nbsp;4) filing on May&nbsp;29, 2009.&#160; </font><font size="2" style="font-size:10.0pt;">By comparison, the Company&#146;s
nominees collectively have over 41 years of prior public company board
experience.</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i><font size="2" style="font-size:10.0pt;font-style:italic;">&#147;Under the current Board&#146;s
leadership since 2003, we have successfully integrated two strategic
acquisitions &#151; NetSimplicity and iEmployee &#151; that serve high-growth,
high-margin markets.&#160; We also divested
the legacy businesses that were facing eroding market demand and
relevancy.&#160; Since we started this
transformation, we have eliminated 93% of expenses from the company.&#148;</font></i></p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company has a long
history in the technology sector, first as a video conference equipment vendor,
then as an intellectual property portfolio company, and now as a pure-play
software company.&nbsp; Since the Company sunset its intellectual property
licensing business in 2007 (due in part to the significant operating losses
experienced during that stage of its business cycle) and became a pure-play
software vendor operating under the name &#147;Asure Software,&#148; the Company has
experienced total losses of approximately $9.8 million and has begun to
significantly reduce its cash burn rate.&#160;
By expanding its operational analysis of the Company to pick up business
lines that have since been jettisoned (citing unsubstantiated net losses in
excess of $40 million since 2003), Pinnacle/Red Oak has conveniently distorted
the Company&#146;s recent, and more relevant, performance record and failed to
identify the parameters of its analysis to stockholders.&#160; Regarding the elimination of expenses cited
above, the Company has reduced is operating expenses from the time it began
transitioning its business model in 1997 (when Richard N. Snyder first joined
the Company&#146;s board of </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">directors) through this past
fiscal quarter by approximately $47.8 million or 93.5%.&#160; Specifically, the Company&#146;s operating
expenses were approximately $51.1 million for the fiscal quarter ended July&nbsp;31,
1997 and approximately $3.3 million for the fiscal quarter ended April&nbsp;30,
2009. &#160;<i>See</i>
Form&nbsp;10-Q filed June&nbsp;13, 1997, Form&nbsp;10-K filed November&nbsp;12,
1997, and Form&nbsp;10-Q filed on June&nbsp;15, 2009.</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i><font size="2" style="font-size:10.0pt;font-style:italic;">&#147;Despite the recent harsh
macroeconomic environment, we have reported solid financial and operational
results in recent quarter and have outperformed our competitors.&#148;</font></i></p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As indicated in the Company&#146;s recent earnings release,
the Company&#146;s financial performance improved from its second fiscal quarter to
its third fiscal quarter.&#160; <i>See</i> Form&nbsp;8-K filed on June&nbsp;18, 2009.&#160; Specifically, iEmployee new customer bookings
increased by 59%, overall operating expenses decreased by 11%, and EBIDTA loss
decreased by 9%.&#160; These trends are also
notable given that second quarter results previously showed marked improvements
over first quarter results.&#160; <i>See</i> Form&nbsp;8-K filed on March&nbsp;13, 2009.</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i><font size="2" style="font-size:10.0pt;font-style:italic;">&#147;We expect rapid profitable
growth when the economy and our target markets rebound, with our objective to
reach $30 million in revenues and 10% profit exiting fiscal 2013 (top-line CAGR
of approximately 30%).&#148;</font></i></p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Given the favorable financial results for the Company&#146;s
second and third fiscal quarters referenced above, the Company expects its
operating expenses to continue trending downward and expects to begin seeing
increases in its product sales (which were flat from the second to third fiscal
quarter).&#160; However, as with any other
forward-looking statements that involve risks and uncertainties, the Company
cannot guarantee future performance or financial projections and it would never
imply that such forward-looking statements were grounded in absolute facts.</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><font size="2" style="font-size:10.0pt;">In future
filings where the Company provides discussions of the lawsuit brought by CLST
Holdings against Red Oak Partners and David Sandberg, the Company will disclose
the defendants&#146; response to the lawsuit and the current status of such lawsuit,
to the extent known to the Company through publicly available information.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Should any member of the Staff have any
questions or additional comments regarding the Amendment or the responses to
the Staff&#146;s Comment Letter set forth above, please do not hesitate the call the
undersigned at (817) 420-8225 or Mark G. Johnson at (214) 745- 5600.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.0%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.0%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Best regards,</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.0%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.0%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.0%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.0%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.0%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:49.0%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ </font><font size="2" style="font-size:10.0pt;">Justin A. Hoover</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.0%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.0%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Justin A. Hoover</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">JAH: mtf</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Enclosures</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">cc:</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Nancy L. Harris
(w/ encl.)<br>
Jay Peterson (w/ encl.) <br>
Mark G. Johnson (w/ encl.)</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

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